Accounting is not just calculating the net profits and losses of an individual or an organization. But it is a method used to calculate the overall assets and liabilities of any business or individual personnel. Similarly, accounts are also not only used in companies to publish their earnings report but also play a crucial role in the finances of an individual’s life. It involves the calculation of all the Long term and short-term taxes, Capital gains taxes, transactions charges, total net profits/losses on your investments, etc.
Accounting in Stock Markets
Accounting as a subject can be slightly tricky and difficult to learn if you do not have any basic idea about it. But in order to calculate your net profits and other tax liabilities, it is significant to audit your transactions. Investors frequently look for the best stock market software that can help them to gain more profits but neglect an important part, which is accounting.
In addition to that, a well-diversified investor would have multiple accounts on numerous platforms which makes it even harder for them to track their accounts.
By using accounting software, you can automatically get the details of your trades and investments and also the required information of your taxes. Good accounting software tracks all your transactions from all of the platforms and provides a comprehensive and efficient list of all your liabilities and assets to you.
Why is accounting software important?
Before we get into selecting a stock market accounting software, let us look at why it is important to use accounting software.
Paying taxes on your income and capital gains is mandatory for every individual and in order to estimate your tax liability, you must know accounting. Hence accounting software could be necessary for any individual who does not know how to prepare and maintain their books of accounts. Therefore, if you do not know how to prepare your accounts, there are two ways. One is to get it done with the help of a professional CA which can get expensive at times. On the other hand, the easier and more economical approach would be to get it done with the help of good accounting software.
A stock market accounting software will help you to track your portfolio, record all buying. And selling transactions, as well as manage all of your accounts. It will provide the ease of computing multiple transactions under the same platform. And will save countless hours that would have been otherwise spent trying to fetch individual transactions.
With proper accounting of your stock market portfolio. You can reduce your overall tax liability and save a lot of money.
For example, if you have made Rs 1,00,000 as profits and a total of Rs 10,000 as a loss in a particular year. You can reduce the overall amount of taxes to be paid, by setting off your losses from the profits. In the following ways, by maintaining proper accounts, you can save a lot of money as well as time.
Some popular stock market accounting software in India
There are multiple platforms and software available in the Indian markets. That allows you to maintain your accounts and also help you file your taxes.
Some of them provide additional features such as professional accounting. And tax planning, advice on investing and wealth creation, and much more. Let’s have a look at some of the top software that is useful for your stock market accounting.
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Tally
Tally is by far the most widely used software in India when it comes to maintaining accounts. They can be not only used for stock market accounting. But also for recording and preparing accounts of a business or individual. The only downside of this software is, it is manual. It means you will have to manually enter the data and then prepare the account. To obtain the accounts out of the software. You need to know the basics of accounting and the functioning of the application. Therefore, Theymight not be an ideal option for beginners who do not have any prior experience in software or accounting.
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TaxBuddy
TaxBuddy is an online tax filing and accounting platform which provides numerous services like filing GST returns, ITR filings, etc. It also caters to all the requirements of stock market participants like managing Capital gains taxes, F&O taxation, from multiple sources. It also provides professional advice on tax planning and a host of other features all under the same platform.
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Quiko
Quiko is another online DIY (Do It Yourself) Tax solution platform which offers multiple products that are aimed at individuals and businesses. The platform is supported by India’s largest discount broker Zerodha, and it allows traders, Investors. And Salaried employees to get their ITRs filed in less than 5 minutes.
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InvestPLus
Investplus is a portfolio management service provider which handles all your stock market accounts and the taxes related to it. It is a fully automated software where you don’t need to manually add any figures. Utilizing this, you can keep track of your finances and monitor the daily activities in your portfolio.
Bottom Line
There is a wide variety of stock market trading software available out there. Hence before you pick one, make sure to understand the software and also your requirements. Some software can offer great portfolio management services but lack accounting functions. Whereas others could offer only accounting and taxation services and not any specialist advice. Therefore, it is extremely important to select a platform that is perfect as per your requirements.
