15 June 2020

When it comes to accounting, there are so many factors we need to take care of. Earlier when technology was not that advanced, manual work was the only solution to the problems. But eventually with the advancement of technology, people became more aware about the evolving technology and turned techno savvy and automation came into the picture.

When we talk about the travel industry, it is about managing multiple tours, customers, suppliers and the most important part is managing entire accounting department of travel company. This is the crucial part of travel business, after all, all your transactions with customers, suppliers and other third party agents need to be reflected in accounting section, which if managed improperly, can cause a huge loss to your company. You might be enjoying perks from your customers but at the end of the day if all transactions are not maintained properly in respective books, all your efforts will go in vain.

Now using generic accounting software for travel company accounts management is not a perfect solution to the problem. As generic accounting software will not take specific account & finance requirements of travel companies into the consideration, instead Travel Agency Accounting Software will be the best choice. So when you are planning of purchasing travel agency software, inclusion of accounting & finance feature is of utmost importance.

So manually maintaining your accounts is good but to some extent, to get integrity & accuracy in your accounts, accounting software specially designed for travel company is the best solution which lifts heavy load for you and gives you accurate results in short time period.

Let’s take a glimpse of accounting activities that travel companies needs to deal with on daily basis.

• Manage multiple bank accounts
• Maintain ledger/journal entries
• Create pro forma invoice
• Create tax invoice
• Create receipts
• Create GSTR1, GSTR2
• Maintain Balance sheet
• Maintain Profit and loss statement
• Maintain customer ledger
• Maintain supplier ledger
• Manage cheque related information
• Create multiple accounting reports
• Analysis of accounting reports

Now let’s see the drawbacks of managing travel company accounting activities manually:

1. Low Accuracy: When we try to do something manually, then it is 50% prone to errors, as we are humans. Especially when managing accounting activities of travel company manually on daily/weekly basis, then the activity becomes monotonous and gives errors which results in inaccurate results.

2. Time Consuming Process: Accountant when manages the above listed activities manually, then it becomes a time consuming process.

3. Increased Risk: As for execution of every accounting activity in travel company, we need to rely on accounting person, so there are huge chances of any kind of missing entry in accounting book which may lead to incorrect report and wrong business analysis.

4. Delays in Process: After sales process is completed, the accounting parts starts. Manually entering each & every entry in journal, ledger, Balance sheet, P&L statement, creating invoices and receipts becomes a hectic job for accounting person and results in inevitable delays in information processing.

It’s time to jump over to the automation part. Let’s see how accounting software for tour operator automates travel company’s accounting activities and how travel company can benefited by it:

Automate invoice generation: Once client/customer has confirmed his tour booking, travel accounting software auto generates invoice to be sent to the customer.

Automate receipts generation: Once payment is done by the customer, receipts is auto generated by the software.

Tax invoice generation: After customer has availed the service (completed tour with the travel company), based on the additional services he has taken, Accounting software creates tax invoice.

Automate entries in multiple books: All the entries get automatically reflected in the journal book, customer/supplier ledger book, balance sheet, profit and loss statement, trial balance, tax report etc, once entry is made in the sales book.

Analyses accounting history: It analyses complete accounting history of travel company, and gives information about amount to be paid/ received by customer, supplier, travel company.

Automate GSTR 1,GSTR 2 generation: Travel Accounting Software also creates GSTR 1, GSTR 2 reports, that are to be submitted to the government on specified dates.

Auto reflect Tax%: Tax% that is entered by the concerned person once, gets reflected automatically at the time of sales and purchase.

Easy access to cheque related data: Accounting software gives you the complete overview of check related data, such as cleared cheque, pending cheque, bounced cheque etc.

Manage multiple bank accounts: It allows you to manage multiple bank accounts.

Access to multiple in built features: Travel companies can easily get benefited by multiple in built features of accounting software such as customized invoice formats, multiple ledger formats etc.

Specific account report generation: The software creates multiple accounting reports such as financial report, tax report, statistic report, reconciliation report etc for your travel company to get complete overview of financial health of your travel business, and makes process much easier to make analysis and take further decisions.