A Brief Note on Accounting Software and Introduction of GST
Accounting software streamlines financial functions, reduces operational faults, and mitigates business losses. With GST implementation in India, GST compliant accounting software ensures compliance, simplifies financial management, and facilitates online filing.
Statistics on the accounting software market
According to research, the accounting software market will grow 8.5% annually from 2019 to 2024. The introduction of GST (Goods and Services Tax) in July 2017 altered the entire tax structure and necessitated businesses to comply with new statutory norms. Compared with current times, the number of taxpayers increased to 1.26cr, a 20% surge since 2017. This upward movement is because of the simple and quick returns filing system through the GST portal.
Key Takeaways of GST Accounting Software
- Ideal accounting software simplifies the filing of GST returns.
- It saves time, prevents errors, assists the filing process, and optimizes the lengthy procedure.
- The GST software platform offers two packages for different GST solutions – one for GST accounting and the other for GST filing.
- When choosing GST accounting software, ensure it has the necessary features for your business.
Benefits of Using GST Software
There are various advantages of utilizing GST-compliant accounting software for businesses, such as:
- Time-saving – GST accounting can be time-consuming due to paperwork, manual calculations, and lengthy procedures. However, utilizing a GST system can automate these tasks, allowing businesses to focus on their core operations.
- Accuracy -GST accounting solutions calculate taxes accurately and generate error-free returns, reducing the risk of penalties and fines due to errors and mistakes.
- Transparency – When you file GST returns via cloud based ERP software, it has a GST filing solution that can integrate with other modules. It allows sharing and flow of data within the organization and ensures transparency.
- Cost-effective – Small businesses can save money using affordable GST systems instead of manually complying with taxes.
Features of GST Software
GST software offers several features that simplify tax compliance for businesses.
The key features include:
- GST Return Filing – It simplifies filing GST returns by automating tax calculation and returns generation.
- E-Invoicing – The GST software allows the download of e-Invoices generated on the e-invoice portal for the entire month and ensures compliance with the rules.
- E-Way Bill – It can generate and download e-way bills through the government portal. The portal provides data for 5-day periods enabling companies to download for the entire month using the GST accounting software.
- Reconciliation – The GST accounting solution reconciles purchase data with GSTR 2B/2A to enable maximum ITC.
11 Things to keep in mind while choosing a GST accounting Software
- Know what your business demands – Identifying the purpose is essential before adopting accounting software. Ask the following questions. Does it include a tax filing system? Does it generate different reports? Is it cloud-based and secure? Additionally, ensure that the software can integrate with third-party software later for efficient remote finance management.
- Ensure topmost security features – Ensuring the security of confidential business information is crucial while using GST software. Reliable GST accounting software should have appropriate security standards, including password protection, data backup, and virus/threat protection.
- There should be scope for scalability – When adopting an accounting system, it is vital to consider potential transitions. Otherwise, businesses may face complications and expenses later when switching systems to meet market demands. Choosingsoftware as per need could become complex and time-consuming. Hence, your GST-compliant accounting software must possess the scalability feature which can work accordingly.
- Simple user interface – A clear and easy-to-use software interface is crucial for non-technical users to file GST. The interface should include dashboards and reports to aid decision-making and transparency. Real-time information should be available on GST updates and deadlines, and the software should connect to the GSTN.
- The system must meet the GST compliance requirements – Companies must use GST accounting software to comply with financial record laws. This software automates compliance processes, including e-way bills and e-invoices, and gives tax authorities access to complete invoice trails submitted through the GST portal.
- Multi-platform adaptability – For timely online return filing and relief from the taxation process, purchase accounting software for GST that offers multi-platform adaptability for filing GST tasks on desktops, tablets, laptops, or mobile phones.
- Online and offline capabilities – Both online and offline modes enhance the GST system capabilities. Offline mode enables working without the internet. Online GST accounting software should have offline features for rural areas with network issues. It improves the working environment by avoiding frequent data transfer to GSTN.
- Customer support – Real-time customer support and site visits are crucial when choosing a GST solution. Taxpayers and accounting professionals can easily understand and utilize the software while allowing developers to understand customer needs and suggest appropriate solutions.
- Cost-effective – The cost could be a crucial factor when purchasing a GST filing system. The market offers various models with different features and licensing options for single and multiple users. The cost depends on two factors: business requirements and budget. Business owners and accounting professionals should choose a GST system based on the business size (large/small) and needs (online/offline or both).
- Business Compatibility – Most businesses use GST-compliant accounting software for filing returns, creating invoices, and registering. Choose software according to specific needs, such as a multi-user facility if there is a requirement for multiple users to access the system.
- Customization – Your GST system should be easily customizable to match your business needs and not vice versa. It should also be user-friendly and quick to initiate, saving you time while effectively meeting your needs.
How can WrkPlan be your ideal GST software?
WrkPlan is a cloud based ERP system that files taxes and generates invoices using its GST-compliant accounting software. It can generate e-invoices and e-way bills, keeps your information secure, scalable, and create customized financial reports for various business purposes.
Choosing WrkPlan will be wise as it has all the features and is affordable. It will save you time and simplifies your billing process with an easy user interface.
WrkPlan is an enhanced cloud ERP for small businesses (why wrkplan) that provides useful features to manage your finance easily.
- It helps you generate e-invoices
- Keeps you updated with the expenses
- Manage project-based financial transactions
- Reconciles bank transactions
- Provides an audit trail service
- Generate sales quotes
- Manages sales orders
- Generate GRN for purchasing materials.
- Plan your business with customized financial reports.
Schedule a demo with WrkPlan.
To learn about WrkPlan’s product, register for a free ERP demo and understand the know-how of the system. You can get an idea of the different modules and their features and how they can streamline your business process and be time-saving.
Dial 1-800-120-2449 to get in touch with their representatives.