The country witnessed a major tax reform last year in the form of the Goods And Services Tax (GST) with the new tax assimilating most of the old taxes into itself and therefore reducing the burden of tax on companies as well as the consumers. It has also forced businesses to make changes in their approach and one of them is modifying their internal accounting and data management systems and procedures with the help of GST consultants in India to incorporate the features of the new tax. One of the key recommendations made by Tax consultancy services is using GST software for the purpose of tax management. The key reasons that prompt GST consulting firms in India to suggest using software are being listed here for the benefit of business owners.
1. Makes Data Filing Process Easier
The tax has come with new compliance and reporting requirements for companies with a regular business being required to file two monthly and one annual return in a financial year. In order to give the reader an idea about the new procedures, let’s see what details a registered dealer must provide in the returns. Any such person has to mention the purchases and sales along with the output GST on sales and the input tax credit on the GST paid for the purchases. This makes it necessary to keep track of the various invoices and bills related to the transactions in addition to monitoring the inventories, finances and computation of all the taxes. Most GST consultants in India therefore insist on installing a software that can help the merchant in performing all these tasks and maintaining the relevant records who can then easily analyze the data for preparing and filing returns.
2. Provides Efficient Method For Simple Invoicing
The above point must have made it clear how important it is for any company to keep a record of all the bills and invoices generated during a financial year. Commercial organizations located in the service industry like Information Technology, Hospitality, Retail, Food Service etc. have to follow regulations related to service tax and some other associated levies in addition to GST. Most of these companies have to keep a record of transactions which involve various commodities or items with different rates making the whole process of computation of the final bill including all the taxes, a very laborious process. The whole process of generating the invoice by adding the cost of the item with the applicable taxes at the correct rate can be made easier and quicker with the implementation of a software package. Investing in a software based system makes sense as it also helps in improving the efficiency of the organization with automated bill generation and data storage.
3. Adapts According To Business Requirements
the feature of adaptability that such software systems possess is also one of the foremost factors which encourages GST consultants in India to advise their clients for installing them for maintenance of financial records. These packages are designed by professionals in such a manner that they can be easily modified according to the specific requirements of a commercial organization. Every business is unique and the factors that affect the price of an item apart from manufacturing costs and the applicable tax slab may vary from one company to the other. Most corporations have a team of efficient accountants and other consultants which handle the different taxation and compliance matters but since this new tax is relatively new, finding professionals with considerable expertise can be a hard task for many small entrepreneurs. A GST software will be helpful for the accounting team who can simply enter the metrics applicable to their company and the software will complete the calculation.
4. Helpful In Saving Time And Money
All entrepreneurs keep looking for ways in which the efficiency and productivity of their business can be increased and a GST software can be immensely helpful in the purpose by saving resources like time and money. The importance that bills, invoices and other associated documents hold for meeting the compliance requirements specified by the new tax is well understood by all business owners. Establishing a software based system that takes care of all the processes right from computing the correct price with taxes, generating invoices and maintaining all the records for each transaction will ultimately be helpful in filing the returns on time. This is also a very cost- effective method with all the monetary investment required for buying and installing the software on existing computer systems.
5. Minimizes Scope For Human Error
A major hazard with a completely human resources based approach with no provision for cross checking with technological tools, is the possibility of occurrence of an error. It is vital that the correct tax slab is applied to a transaction besides all the data is stored in a systematic manner so that all the relevant information can be accessed immediately. Some stiff penalty provisions have been introduced for offences such as failure to generate an invoice, or issuing an incorrect invoice or not submitting the tax amount to the government within the specified time period. All these mishaps can be avoided with the help of a software based system in place for the purpose of all GST related data management.
6. Complete And Round The Clock Access To Data
An entrepreneur needs to travel for his work and with GST making it necessary for filing a number of monthly returns along with the annual return, keeping track of the data can be a difficult task for any business owner. Introducing a technological solution in the form of GST software will keep all the information secure at a single place which can be accessed by all authorized persons at any time and from anywhere. Not only data related to GST but all other vital details like cash flow of the enterprise and payment particulars can be analyzed for assessing the company’s performance.
In order to maintain all relevant records and file timely returns, it is essential for businesses to engage the services of professional and competent GST consultants in India who helped by a software based system of data management will make the compliance process smoother and quicker.