Here we will talk about what is inventory and how to manage it easily.

What is Inventory?

Inventory refers to a list of the goods that are available with the businesses for the purpose of sale. It is also known as stock. Inventory is classified as an asset in the balance sheet, as it generates income once the goods are sold. It is also considered as merchandise, which refers to items that are kept by businessmen for sale in the future.

This explains why inventory is important for any business and how managing the same is one of the necessary actions to have a successful run.

Importance of Inventory in Business

Let us try to understand with a simple example about the importance of inventory management.

Gupta ji runs a grocery store and always tries to keep his customers happy. He makes it a point to keep all the items required by the customers in his shop. However, at times he forgets to order some items, due to which his customers have to return empty-handed. This often has a bad effect on his business. It could’ve been easily avoided if Gupta ji had paid attention to the inventory of his shop and ordered the remaining items.

This is the reason why inventory is important for everyone from small businesses to large businesses. If it is not managed properly, then it may have a negative impact on the business, and the trust of customers is also compromised.

Purchase orders are created to manage inventory. Let us now know what a purchase order is and why it is useful for inventory.

What is a Purchase Order?

A list of items to be ordered from a vendor is called a purchase order. Suppose Gupta ji makes a list to order shortage items like pulses, oil, sugar, salt, soap in a grocery store mentioning the quantity required. This particular list of Gupta ji is what we call a purchase order. Now Gupta ji can place the order to the vendor with the help of this list.

Use of Purchase Order in Inventory

A purchase order is an essential part of inventory management. If one wants to manage his/her business inventory, then he/she has to create a purchase order for it which will help him/her to manage the inventory properly.

This is a digital age and the majority of work is done digitally. It saves a lot of time and reduces the chances of making a mistake. You can stop creating purchase orders on paper and instead use OpenBook to create the same through your smartphone. You can then send the purchase orders to vendors through WhatsApp, SMS, or email. This will help you manage your inventory super easy and the biggest advantage here is that you can make the payment immediately from OpenBook itself.

Let us also inform you that OpenBook provides a digital business bank account to simplify your business finance management. You can do billing, banking, accounting, and tax — all of it in one place. OpenBook also notifies you about low stock information for you to manage the stocks without facing any shortage.

So don’t wait. Download OpenBook and #BusinessKaroSimple

Let us further tell you about the 7 main benefits of a zero balance current account:

1) Unlimited Transactions – There’s no limit on the number of transactions and the daily upper limit is very high which ensures maximum fluidity in business operations. 

2) No Transaction Charges – Businesses can make single or bulk payments through multiple modes like RTGS, NEFT, ECS, IMPS, and UPI without worrying about the transaction charges.

3) Manage Business Funds Exclusively – A current account will help you keep your business and personal funds separately. The business cash flow can be easily audited which will help you to plan the budget and expense better. It will also be useful for tax calculations and deductions. 

4) Business Legitimacy – Running the expenditures through a personal account is often seen as an unprofessional way of handling business operations. Having a current account adds to the legitimacy of a business and also helps at the time of availing of business loans.

5) No Standing Instruction Charges – Businesses often have to make periodic scheduled payments for fund transfers, third-party payments, EMI for running loans or repayments. The current account helps them to avail standing instruction facility to automate such payments with zero charges.

6) Creditworthiness – Businesses may want to avail lending facilities at the time of shortage of funds. Having a current account in a reputed bank will help prove your creditworthiness and will help in easing the lending process.

7) Value-added services – There are several types of current accounts based on the different requirements businesses might have. All the accounts have customised value-added services as well.

For instance, OpenBook Current Account caters to small and medium-sized businesses and offers tools to simplify the billing, accounting, and GST process.

If you don’t have an online presence yet, this is the perfect time to build one. Let’s have a look & understand how and why we should go online.

• Online business helps you get a wider reach and customer base as it is not restricted to any particular region. 
• It helps you to operate your business from anywhere without even having any physical branch. Your business can have its presence in multiple locations, all thanks to digitization. 
• Online business is more cost-effective as you will not have to inculcate certain fixed costs which come with a physical store like rent, labor cost, etc. 
• Marketing online helps you track your reach, revenue, and other metrics which wouldn’t be possible with offline marketing. 

Now that we have seen how it helps you grow your business. Let’s understand some ways to go about it.

How does online business help:

• If your business is new, you can set up your online store for free with multiple tools like Google my business to build a brand presence. 
• You can sell your products and services online on social media platforms like WhatsApp, Facebook, Instagram, Telegram business pages.
• If your goal is to grow your business by acquiring new customers then you can use reseller platforms like OpenStore and Dhukan where you can extend your reach. 
• E-commerce websites like Amazon and Flipkart can also help you to connect with your customers.

Now that, we have understood ways to go online, let’s see how promotion can boost up your business’s growth.

Here are some of the ways by which you can promote your business digitally:

• Social media platforms are a great way to connect with your customers. 
• Instagram is one such platform where you can create an account for your business and tools such as Instagram stories, reels, and IGTV videos which help you reach a larger audience.
• Putting clear pictures of your products and using trending music are a few tips that help to attract more customers.
• You can also promote your services by reaching out to more people in your contacts, WhatsApp story is one such method. 
• Getting feedback from your customers is the best way to understand what exactly you can work on to appeal to them and keep innovating.

Now that we have understood how and why you should take your business online, let’s see how OpenBook can help you grow it further.

With OpenBook, you can create a digital bank account that meets all your business needs. It helps in automatch, inventory management and simplifies your cash flow tracking. OpenBook is one such app where you can manage everything in one place after taking your business online.

Building an online presence isn’t just a necessity but absolutely essential for small businesses in this age & day. So, if you don’t want to miss out on these benefits, it’s your perfect time to take your business online.

Why payment collection is necessary for small businesses?

Any business runs on the basis of cash flow. The lack of proper cash flow can disrupt business for small and micro-businesses. Therefore, timely payment collection becomes an integral part of any business.

The role that payment collection play at any business:

• Timely payment collection helps in the steady growth of business
• Helps in maintaining proper cashflow
• Proper maintenance of inventory and stocks
• Business finances are managed better
• Builds good customer relation

Present status of payment collection for small and micro-businesses

NO CREDIT!

This is one of the most common stickers visible on most small and micro-businesses. Despite this often businesses work on credit as it is convenient for carrying out the sale. Some customers pay on time while there are some delays by others. Often there is confusion regarding the mode of payment collection as some customers choose to pay via cash as well. Tracking of payment received on different platforms and using this money for business is also a major challenge.

In this digital age, businesses have the option to send payment links to collect payment. Moreover, they can also send payment reminders to stay updated on top of any pending payment.

Collect payments easily on OpenBook

Payment and its collection remain a major challenge for most small businesses. Keeping this in mind OpenBook was built for the need of small and micro-businesses in India. Businesses can manage their billing, banking, accounting, and taxes all in one place with OpenBook.

Here are some OpenBook advantages:

• Firstly with OpenBook, businesses can send payment links with invoices to customers via SMS, WhatsApp, etc
• Secondly, customers can pay via the payment link using their preferred modes of payment like UPI, net banking, etc
• Further, businesses can even collect international payments from customers
• Additionally, businesses can send payment reminders to customers to receive payments

Isn’t this amazing?

Imagine different use cases for this app among small and micro businesses for all their payment requirements. On top of this, any payment received is auto-matched with the invoice generated. Most importantly, this helps with reconciliation/account settlement for payments. OpenBook helps businesses to manage business finances better.

In short, download the OpenBook app today and manage your business in one place. #BusinessKaroSimple

In this blog, we will know in detail how estimates help small and micro businesses in managing their business better. But let’s first understand.

What are Estimates?

An estimate or quotation as popularly known in the Indian market is a business document that provides an approximation of the product and its price. This is used by most businesses for their potential customers so that both parties are aware of the product offerings. 

For example businesses before giving an actual invoice provide this estimate/quotation with the product name, quantity, and price of the product in it. So eventually customers can make purchases based on the estimate provided.

Benefits of using an Estimate

Here are 5 benefits on why small and micro-businesses should create and provide their customers with estimates:

1. Build better customer relationships: Estimates provide even minor details about the product and items involved along with their prices. This is something that both business owners and customers agree upon, thus building transparency and integrity.
2. Easier in managing inventory: Based on the requirement of the product from the customer, business owners can make sure the availability of items at the time of delivery. This also helps in maintaining the quality of the products as promised by the business owner.
3. A better understanding of the budget: The estimates provide a better understanding of the budget for any particular sale. Cost price, sale price, discount, profit, etc becomes quite clear for businesses before doing the actual transaction.
4. The clear expectation on delivery dates: For any business keeping one’s word is important, thus the estimate also provides the customer’s expectation in place. Helping them towards delivering at the promised time.
5. Helping in informed business decisions: All this information can help a business owner understand in detail how any sale can give them profit. This also gives insight into the availability of the product to deliver at the given date. So accordingly can go ahead with the business transaction or not.

Create Estimates easily on OpenBook

OpenBook understanding the requirements of micro and small businesses has brought everything that your business needs. From billing, banking, accounting, taxes, and more all at one place. It’s a really simple process to create an estimate on OpenBook.

Steps to create an estimate:

• Click on the estimate icon on the OpenBook dashboard
• Add party name
• Select item 
• Mention the amount and any additional details
• Save and send it to the customer

See it takes less than 2 minutes to create an estimate on OpenBook. Now that you have understood the importance of estimates and how they can benefit your business.

What are you waiting for?

Download OpenBook app today and #BusinessKaroSimple. 

It is an integral part of business finance for any business. In most cases, it is a proof of business transaction as in which product or services were bought from which vendor. Let’s understand in detail how important a Purchase bill is for any business.

What is a Purchase Bill?

A purchase bill is a record of any business-related purchases by any business from any vendor. It has details of the item/product/services bought along with the payment details such as any advance paid or credit given to the buyer. Often it is also called vendor sales bills/invoices as it is a bill for any purchases from vendors. 

What elements are a must for a Purchase Bill?

• Details of party & vendor
• Details of items
• Quantity of items purchased
• Purchase date
• Purchase price & any discount offered
• GST or TDS involved
• Payment details
• Terms & conditions

Why is Purchase Bill important for any small business?

It is very important for any small business to have purchase bills for any business transactions. This is an integral part of business finances. Without this, it would be difficult to keep track of expenses for any business. Here are some benefits of having a purchase bill:

1. It is proof of purchase of any product or services
2. Also, this helps in keeping track of payments
3. Additionally, it also helps in managing and settlements of accounts

Although knowing how important a purchase bill is, often most businesses especially MSMEs ignore it. Eventually, this becomes a nightmare for any accountant to manage the business finances. Another mistake that businesses do is by making paper bills which have a high chance of getting lost or damaged. This again will create big trouble in managing business finances.

We are moving towards digitization which eases the way of managing a business. Thus it is important for businesses to opt for digital versions of these Purchase Bills.

How making a Purchase Bill is simple on OpenBook?

OpenBook understands the need for 6.6 crore micro & small businesses in India.

Small businesses can create purchase bills to record items being paid. They can either save the purchase bill or can pay directly. Businesses have the option of paying at the time of creating. Payment can be made through NEFT, IMPS, or UPI.

Alternatively, businesses can record a cash payment. At the time of creating the bill, small businesses can enter any cash they have already paid to the party so that only the remaining amount will be marked as due.

Create a purchase bill on OpenBook in 3 simple steps:

• Enter the party name
• Select the items
• Add the billing amount

It’s that simple. The best part is that this will automatically reflect in your accounting. Additionally, when you pay for this purchase bill, it gets auto-matched. And this is what we mean when we say #BusinessKaroSimple.

Use all this time saved in managing business finances to work towards growing your business to the next level.

What are you waiting for? Download the OpenBook app today and #BusinessKaroSimple.

Why the name AtriaOne card?

AtriaOne card is an e-debit card that is combined with your OpenBook online account, to manage business finances better.

The name Atria came from a concept of A trillion-dollar that is the contribution of MSMEs in the current GDP. Micro and small businesses constitute about over 30% of the Indian GDP. These small businesses are also the source of employment for over 12 crore people in India.

Most small businesses have to struggle a lot in managing their finances. The majority of small and micro-businesses depend upon cash-based transactions. Cash-based transactions are often difficult to manage. The accounting and settlements for cash transactions are often complicated. We have seen people opting for online transactions in recent times. A lot of MSMEs don’t have the access to a current account or business cards to manage their business.

AtriaOne card is the one card that you will ever need to manage all your business payments. It is similar to any other debit card with a card number, expiry date & CVV number. The best part about this AtriaOne card is it can be activated instantly. Also, this card is free of any charges forever. Isn’t this amazing.

All you need to do is complete your KYC by giving your Aadhar and PAN card details. That’s it and you get your AtriaOne card details and you can use it for any of your business related transactions. All the transactions made by AtriaOne card is reflected on OpenBook that is automatched. Thus making your business finance simple.

AtriaOne Card can be used for:

• Online purchases
• Bill payment
• Vendor payment

India is poised to become a 5 trillion dollar economy in the next 5 years. And MSMEs are the backbone of the  Indian economy. MSMEs are going to be both a contributor  & a beneficiary of this growth. We at OpenBook are committed to helping micro and small businesses in achieving this dream.

So, what are you waiting for? Download the OpenBook app today and manage your business-related billing, banking, accounting, and taxes in one place. #BusinessKaroSimple

A lot of these micro and small business owners simply lost much of their businesses owing to lockdowns and curfew. The overall economy shrank and due to the fear of coronavirus, most people preferred shopping online. The situation was similar across sectors be it manufacturing or retail or even service industry. 

Steps by the government to help micro and small businesses (MSMEs):

1. MSME Udyam Portal Registration Simplified: Micro and small businesses can now register online for free with minimal paperwork. This will enable a lot of business owners to take benefits from various government schemes.
2. Incentive package of ‘Aatmanirbhar Bharat Abhiyan’ for MSMEs: A relief of loan of 3 lakh crore rupees for MSMEs in the form of low-interest loans and collateral-free from PSU banks, private banks, and NBFCs. 
3. Zero Defect Zero Effect: In this model, goods that are manufactured for export have to adhere to a certain standard. To achieve this the government has launched this scheme to provide rebates and concessions for exported goods. 
4. Quality Management Standards & Quality Technology Tools: Registering in this scheme will help the micro, small and medium businesses to understand and implement the quality standards that are required to be maintained along with the new technology via seminars, campaigns, activities, etc.

With industries showing immense resilience through innovative ways during the pandemic. India now gradually making its way toward recovery, growth sustainability

What micro and small businesses(MSMEs) can do to grow their business: 

1. Digitization: I think all small and micro businesses should think of better ways to manage their business by adopting new technology. This will also enable them to reach new markets and get new customers. 
2. Agile manufacturing: Businesses need to evolve to suit the needs of end customers. This will enable them to optimize their efforts to get loyal customers and profitability in the long run. 
3. Better management of funds: Small and micro businesses need to work on ways to have better cash flow as well as profitability to ensure smooth operations in case of a rainy day. Often 
4. Better ways to manage finances: Business owners need to save their time in managing business finances by using platforms that can easily help them do so.

The current economic problems are by no means over for small and micro-businesses. But, preparing for the unknown well in advance can help them regulate it.

Manage business finances with OpenBook 

OpenBook understands the need of 6 crore MSMEs of India and hence has built a product that simplifies the way of managing a business. It is India’s first financial app that has an online bank account. It solves everything from billing, payments, banking accounting, and taxes, all in one place. 

Now businesses can save up to 20 hours every week in managing accounting or bank reconciliations. This time can be utilized well in getting new customers or ensuring supplies from vendors or even getting a credit line/loan to take the business to the next level.

So, what are you waiting for? Download the OpenBook app today and manage your business-related billing, banking, accounting, and taxes in one place. #BusinessKaroSimple

Just imagine the trouble that a small business owner goes through for his banking needs. Suppose, an electronics showroom owner has to go to bank branches to deposit cash or cheques, also to get his passbook updated for bank statements. After this spending hour on matching it with payments to manage his accounts. All this time could have been well spent on customers, thus growing the business.

Banking issues that most micro and small business in India face are:

1. Need to visit bank branches during business hours
2. Documentation takes longer hours for its completion
3. Reconciliation of bank statements based on cash register and daybook
4. Even the digital banking platforms are a bit technical for most small business owners

With the growing and mass-scale digitization, we have seen how businesses have adopted digital payments. In this way, business banking has also evolved for all kinds of businesses. 

OpenBook online account to the rescue

OpenBook comes with an online bank account that is made for micro and small businesses in India.  This has everything that your regular bank account has such as account holder name, account number, and IFSC code. The unique part about this is you don’t need to go to any physical branch to access it, it’s available right there on your OpenBook app. You get an OpenBook online account as you complete the sign-up on the OpenBook app. It takes less than 2 minutes to create an online bank account on OpenBook.

OpenBook’s online account is designed to simplify business banking of the micro and small businesses of India. 

How OpenBook account helps your business:

• Collect money from your customers directly to this online account
• Transferring money to vendors is simplified
• Pay for staff salary of your business
• Add money and store your balance
• Pay for utility bills for your business

Isn’t this wonderful? The best part is all your business finance and transactions are auto-matched. This means now you can save hours that are spent on manual reconciliation of the bills, invoices, accounting books, and bank statements. This is probably the best and the only bank account they would need to manage all of their business finances. 

There are certain things that you can’t do with an OpenBook account i.e. use it for applying for bank loans or VISA approvals or for making investments. But still, there are a lot of things you can do on OpenBook to make your business finance simple. 

So what are you waiting for? Download the OpenBook app today and manage your business-related billing, banking, accounting, and taxes in one place. #BusinessKaroSimple

Business reports provide useful insights on spends, profits, and growth. They also provide important details that can be used to help develop future forecasts, marketing plans, guide budget planning, and improve decision-making.

Different types of business reports that your small business needs:

• Transactional reports: These provide insights on daily transactions such as daybooks, sales reports, etc.
• Inventory reports: These offer detailed insights on inventory and help you plan item stocks better.
• Party reports: These give you an overview of all your receivables from your customers and payables from your vendors.
• Business finance reports: These provide a big picture view of all your business finances like cash flow, profit/loss, balance sheet, etc
• Expense/Income reports: These offer detailed insight on overall business expenses and income.

To sum up, no more relying on someone else’s advice. These business reports empower you to take better and informed decisions for your business.

Why small businesses struggle with reports

Getting all these reports in place can be quite challenging for most small businesses. Firstly, there is often more than one aspect of the business one has to look at in order to create one. Further, on the other hand, most big businesses and organizations have dedicated teams that put in hours to get these reports in place. 

OpenBook brings 20+ business reports for your micro and small businesses

Understanding the need of micro and small businesses of India, OpenBook offers around close to 20+ reports for your business. The best part is that these reports are generated automatically by OpenBook. This way, you don’t need to worry about creating these reports manually. Use OpenBook to manage your billing, banking, accounting, and GST and you can get the following business reports instantly: 

1. Transactional reports
   • Day Book
   • Sales Report
   • Purchase Report
2. Orders & Challan
   • Sales Order
   • Purchase Order
   • Delivery Challan
3. Final reports
   • Cash Flow
   • Trial Balance
   • Profit & Loss Report
   • Balance Sheet
4. Item/Stock reports
   • Stock Summary
   • Low Stock Summary
   • Item Sales Summary
   • Item Report by Party
   • Rate List
5. Party reports
   • Receivables
   • Payables
   • Party Report by Item
   • Party wise outstanding
6. Income & expense reports
   • Income Transaction
   • Expense Transaction

On top of this, it also offers GST reports like GST 1, GST 2 & GST 3B – all in one place. To sum up, isn’t this a better way to manage your business?

OpenBook brings everything that any micro and small business would require from billing, banking, accounting to even GST in one place. So Download the OpenBook app today and #BusinessKaroSimple.