F.A.Q. of Credit Co-op. Society
What do you mean by credit Co-operative Society ?

Credit co-operative society is one type of mini bank, where person can open various accounts to invest his money like - Savings , Compulsory Saving , Monthly Recurring, Fixed Deposit etc. & can also take Loans as per requirement when needed.

Types of Credit Co-operative Society ?

There are many types of co-operative societies, But following are major 4 Type. 1. Credit society 2. Employee society 3. Pack society 4. Housing society

Major difference between Banks & Co-operative Society ?

The major difference between bank & co-operative society is that bank can issue cheque book to Account holders while society cannot. the overall functioning and work is most of the same. Bank is a big organization having so many branches and in INDIA IT is Registered under RBI. While Credit Societies are Registered with District Registrar office under State Co-op. department of every state.

How does co-operative society works?

If anybody wants to do transaction in society he has to become member of society. There are two types of members Actual member:- who are holding shares of the society. Nominal member:- who doesn’t hold shares of the society Co-operative society works like a bank. It provides facilities of Deposits & Loan to members; also it provides other facilities to their members like insurance, lockers etc.

Why should i have to computerize my Credit Co-op. Society?

by computerized your society you can get many benefits like

A. Manual workload will get reduce: If you computerized your society you don’t have to maintain records Manually. Just do transaction entry and all posting in General ledger, Daybook, Balance sheet, Trial Balance, Tarij etc. will be done by software automatically. It also has so many other functionality like interest & penalty calculation, MIS reporting for management and Audit, Printing of so many reports as required, it reminds you for payments and receipts etc. Daily 8 Hours of 4 persons work will be done by computer software in just 2-3 hours of data entry.

B. Work get speedy & accurate: If your society is having computer your work will get speedy and accurate. Calcuation of intreset, dividend of more than 600 members can be done with in one minute. You have to give only one command of Recovering posting and automatically the entries will shown in loan, monthly recurring, savings without any mistake.calcuation will be 100% accurate.

C. Accouants will be clear & transprent: By computerized your society you don’t have to face frauds.it will be easy for operator to calcuate intrest as per showing in computer. No body can change in opening balance due to faclity of date lock & password protection.

D. Automation calcuation: by giving only one command in your software it will automatic calcuate intrest, dividend etc.all work get speedy due to computerized of society.

E. Members can get more benefits with speedy work: Members can get last balance report, member can see the loan intrest on any date, members can get compuertized statements, passbook, reports etc. They can get details of their balance, intrest, dividend etc. On phone or by sms.

F. Management cost gets reduce: by computerized your society you don’t have to keep books and buy stationeries item. By this you can reduce your cost of management.

We have established new credit society so how can we afford to buy new p.c?

If your society is computerized from the begining it will help you in future When your work load will increase, you don’t have to maintain manually a/c your work can be done easily by less staff member & your stationery expense will also get less. You don’t have to tally your computerized a/c with manual a/c.

Our accountant write our a/c than why should we spend money on computer?

money spent on computer is not an expense but it is a longtrem investment.

1). If accountant visit at your society your stationery expense and his salary expense will increase. You can buy software by that much expense you spend on your accountant.

2). You have to depend on your accountant.your audit reports may get delay due to him.if he makes mistake than society have to pay for it.

3). You can do your own work once in a week within one to two hours and your work will get finish.

Currently we are residing in rented office so first we are planning for our own office building then can we plan for computer?

A. Basically building, furniture, etc is our investment like wise computer software is not an expense but it is a long term investment. Here you can think that “invest one time gain life time”. Also computer investment amount is very less than building investment so if we invested in computer software our work will be easier , accurate and perfect.so we can serve better to our members

How much computer knowledge is required for staff members for computerization of software?

A. Our software is so easy that even a ssc pass operator can operate this software easily in only four to five training. If society staff is having computer knowldege then it is ok, but if they don’t have it then you don’t need to worry.our staff member will physically visit your society and train your society staff members.

Expense of computer for society is better or not?

Computerization for society is not an expense but it is a long term investment. And you will get its returns for more than 10 years or even lifetime.suppose you purchase the computer software, hardware etc in rupees one lakh tha n it is your assets and you can get deduction of depericiation @ 20% for five years in computer accounts so your monthly expenses will be around rs 1600/- approx. So it is less than your monthly salary of a society peon and your workload will be reduce upto 80%. So whether your society is big or small computerization is very necessary for any type of society.

In our society we are facing problems of member’s a/c total or general a/c. Is it possible to do our computerization of our society without improving previous mistakes?

No, you should open members a/c in computer as it is running in your manual a/c with respective balances and the amount of difference can be kept in suspense a/c and when you get the mistake you can remove suspense a/c and change individual a/c balances.so to purchase computer it is not necessary to recitfy all mistakes.