Deciding Between Bookkeeping Software and Bookkeeping Service

Bookkeeping - the record of day to day financial transactions such as sales, purchase, income and payments by an individual or an organization. These records needed to be produced at the end of every financial year. From small to medium to large business, maintaining financial records is a mush which therefore necessitates bookkeeping process.

The choice of preparing and producing the accounts: organization basically have three options: one is to prepare and maintain records manually; next can be to employ the bookkeeping services and the last option is to use bookkeeping software system.Each has its own advantages and disadvantages. What ever may be the employed method, the ultimate thing is to produce accurate accounting information needed on time.

As the recorded financial transaction is very important for financial decisions and knowledge over the business performance, efficiency and accuracy over the recorded transactions becomes the major concern. Further, the accounting information is the accumulation of documents such as sales invoices, purchase invoices and possibly bank records during the financial year and after the end of the financial year for tax purposes.

Improper records of the above said data (as financial records) leads to unwanted penalties, simply administrative burdens. In analyzing the choices: keeping and maintaining manually may lead to data lose, inaccuracies, fines and penalties thus leading to severe issues at the end of the financial year.

Manual bookkeeping needs regular and periodic evaluation of the data. In going for the choice of having a bookkeeper, trust and knowledge over the operation becomes the mandatory thing for any organization. Also periodic and regular tracking of the works and records maintained is necessary. Having bookkeeper, it is also partially includes in manual work where accuracy level is still depends on the knowledge of the bookkeeper.

The third choice of installing bookkeeping software also has few disadvantages. But these are overruled by its wide advantages. The major advantage is the reduction in paper work and 90% of reducing the manual work thereby achieving accuracy and efficiency. By having bookkeeping software, no one other than the business owners and the authorized person know the financial status which can be called as the security over the accounts.

So by having the gist in hand, the advantages and disadvantages over the choices can be analyzed as discussed above. It can be said with proof that accounting software provides better financial control and performance over the others: manual bookkeeping and having bookkeeper. Thereby administrative burden can be reduced and the organization can focus on its core activities.

Do Transactions From Your Mobile Phones

SMS Transaction is a service that Numia offers to its customers to get their own company data and add some kind of transactions into their numia account using SMS from mobile phones. For some reasons we offer this service only to U.S phone numbers. Will make it world wide in future soon.

This service makes your job easier, it helps you to do transaction whenever you want to do. You don’t need to login every time for doing transaction, just it is enough if you send SMS from your mobile number. You can register your mobile number in the user accounts section of Numia.

A user must access from only one mobile number. If your company has registered 2 mobile numbers for the same account, you can access it from both the mobile numbers. You can also customize your desired keywords for various transactions. For example i have customized Chk for check transaction as highlighted in the below screenshot.

If you have registered your mobile number, you can receive text of keywords. Just send Text "numia" to 41411 and you will receive a text of keywords you can use for your numia account or follow the SMS instructions.

Following are the steps for SMS transaction :

• Select Company --> Click Texting/SMS List
• Click Add List.
• Select the transaction type and choose your desired transaction name for that transaction type.
• Then click save transaction.
• Similarly Create your SMS Transaction list.

Once you have customized your transaction list, you can do transaction , on your cellphone itself, You can now send "numia Chk 18 350.00" where "18" is the transaction number on the "SMS Transaction List".

Customizing Homepage

In Numia, the home page gives details of all the recent activities carried out in your account. The home page lists the recent activities in invoices, Due receipts, Due payments, checks, deposits, aged customers, cash sales, etc. Recent activity of an individual and log in details are also included in the home page list. There is an option to customize your home page, i.e. to add or remove gadgets of your choice. This feature facilitates to make your home page to list the details you want. Also you can easily go through the recent transaction details and log in details.

The important advantage of this feature is that you can avoid going deep into your account for viewing the recent activities.

Sending Invoice through email in Numia

Invoice is nothing but a written record of a transaction submitted to customer or client when requesting payment for services or goods delivered. Even it is also called as bill sometimes statement, but according to me the term statement has a different meaning that does not include a formal request for payment.

A Sample screenshot from Numia,

Sending invoice through mail makes very easy for the customers/clients since it takes less time and it will be more secure. Why spend valued resources on paper and postage when you can easily convert invoices electronically and email? We at numia (an online accounting, bookkeeping software) provides option for sending invoice through mail.

Following are the steps to send invoice through mail:

• Select Customer - > click create invoice.
• Fill the details.
• Check the send mail box to send the invoice through mail.
• If the option is checked, the invoice will be mailed to the customer’s email address automatically.
• The invoice will be in excel format.

Depreciation in Numia

Most assets lose their value over time and must be replaced once the end of their useful life is reached. Decrease in value of your asset due to obsolescence or use is termed as Depreciation. It is considered an expense and is listed in an income statement under expenses.

For Instance, consider that you buy a Computer for your organization. The computer loses value from the minute you bought it. Computer is considered as a fixed asset of the organisation. Each year the value of the computer keep on reducing . Measuring the value being reduced is called as depreciation. This depreciation value may vary depending on the type of asset you own.

Depreciation is calculated in two methods namely, Percentage method and Straight-line method. In the former method, a percentage will be fixed according to the type of asset and that percentage of amount will be reduced every year from that asset. In the later method a formula is used to calculate the depreciation value.

Depreciation value = (cost of the asset - expected salvage value)/ Years of estimated useful life

Strainght line method is the most commonly used method. Numia ,our free Online Accounting Software uses both these method for calculating the depreciation value of assets. We provide you an option to select time period like full-year, quarterly and half-year for calculating the depreciating value.


To find the annual depreciation cost for your assets, you need to know the initial cost of the assets. You also need to determine how many years you think the assets will retain some value for your business. In the case of a computer, it may only have a useful life of ten years.

Chart Of Accounts

A Chart of Accounts(COA) is a list of all account names and numbers in your company's general ledger . The chart of accounts contains the account number, account name, and the information that controls how an account functions and how a G/L account is created in a company code.

Chart of Accounts is classified into one of the five categories :

1. Assets - It is the group of things that you own. Assets could include a car, cash, a house, stocks, or anything else that has convertible value.

2. Liabilities - It is the group of things on which you owe money liabilities could include a car loan, a student loan, a mortgage, your investment margin account, or anything else which you must pay back at some time.

3. Equity - It is same as "net worth." It represents what is left over after subtracting your liabilities from your assets.

4. Income - It is the payment you receive for your time, services you provide, or the use of your money.

5. Expenses - It refers to money you spend to purchase goods or services provided by someone else.

Each account in the chart is assigned as unique identifier, typically an account number.For very small businesses, three digits may suffice for the account number. COA should be designed to capture financial information to make good financial decisions.

Whether you run a business or a student of business, Our online Accounting software Numia ,will help you to maintain your accounts easily.In Numia , we have many default accounts which covers almost all small scale business needs.

According to your business You can create your own accounts and account types too.

Video Tutorials - Accounting made easier

During past the accounting was more of book keeping done in huge ledgers. But at present everything had changed. Accounting is much more widely accepted as a business function and general people also look for the accounting details of the firms they are associated with.

In day to-day business maintaining book keeping in ledgers is hard in few situations(both for small and large business). Huge amount of time and man power is required for maintaining those kind of records. So Online accounting service, viewed as merely experimental a few years ago are now becoming the vital role to run a business.

These softwares becomes more transparent for businesses where limited time & man power is required. Our main aim is to make numia easier and comfortable for user/business. So we had a team to create these video tutorials for you to get a clear picture on what you are working into. Each process has a video tutorial so go ahead and come out with any suggestions.



Video Tutorials in Numia is intuitive and makes everything easy. The step-by-step instructions that map out each accounting task. This makes managing finances easier, especially for the beginner who doesn't understand every step in each task. Getting started is easy using the Setup Guide and instructional video demos.