Goods and service tax (GST) has revolutionized business accounting in many countries. While the benefits of GST are substantial, businesses now need to be GST compliant. This can require a significant amount of work, including a tiresome taxation process.
A GST software solution makes GST accounting quick and easy. Businesses can automate their bookkeeping tasks, reduce errors, and save time and money.
Let’s look at the top reasons why every business needs a GST software solution.
1. Easier Data Filing
Most businesses nowadays use an accounting software solution, but these systems aren’t necessarily GST compliant. As a result, businesses have to spend extra time and effort on integrating the data with the government’s GST portal.
Moreover, GST invoicing can be complicated. Goods have different tax percentages and HSN codes, so vendors need to enter the right codes and calculate the percentages accurately every time they create an invoice.
A GST solution automates this entire process. Companies can create GST-compliant invoices as the software automatically enters HSN codes and calculates tax percentages.
2. Seamless Document Management
Managing a company’s finances includes juggling through a multitude of paperwork, such as tax filing, warning notices, etc. Storing these documents physically in a paper form has various drawbacks. The arrival of GST has made it mandatory for businesses to keep documents in an electronic format.
A GST software solution simplifies the process of storing documents online. It takes care of minute details like tax slabs and HSN codes to ensure your business stays GST compliant.
Back in the day, companies would hire bookkeepers to manage their GST and finances. However, not all businesses can afford full-time accountants. A GST billing solution acts as your virtual bookkeeper, helping you manage your finances and keep your business compliant.
3. Data Security
The security of business and customer data has become the top priority for businesses. Storing your confidential data in a physical form puts it at risk of theft, breach, or damage. A GST software solution resolves this hurdle.
The best GST solutions are designed to keep your data safe and secure. These systems come with multi-factor authentication capabilities to ensure that only authorized personnel can access the data. Furthermore, they include virus and malware protection to add an extra layer of security to your data.
Lastly, GST solutions come with backup and restore functionality. The system automatically backs up your data. In case you lose your records, you can revive them anytime. This makes data management easy and hassle-free.
4. Time and Cost Savings
CFO research showed that companies spend as much as 520 hours per year on manual accounting tasks. Manual accounting tasks, without a doubt, are time-consuming. By automating them, you can free up time and utilize it for more productive activities.
Implementing a GST software solution automates mundane accounting and bookkeeping tasks. Hence, you can save more time and use your workforce’s talent more effectively.
Additionally, GST software can help you reduce costs. For manual bookkeeping, You need dedicated accountants, which will result in increased labor costs. Having a GST software solution by your side can resolve this hurdle and help you save money.
5. Customization Capabilities
Most modern-day GST software solutions come with a customization feature. You can create custom invoices with unique templates and including your logo. GST solutions also integrate with other software systems like CRM, ERP, HRM, and more to provide a unified experience.
6. Increased Operational Efficiency
Automating tedious tasks can go a long way in increasing operational efficiency. Manually managing your finances can hurt your business in multiple ways.
First, it leads to decreased workforce productivity. Your employees spend more time doing administrative tasks that don’t add any tangible value to your organization. Second, it increases costs. In the absence of GST software, you need to hire dedicated accountants, which will increase your expenses. Thirdly, manual accounting is prone to errors. More than 27% of professionals believe that manual input of data can cause errors.
All these setbacks eventually result in reduced efficiency. You end up spending more time and money and get low returns. A GST software solution eliminates all these hurdles, thereby helping your organization become more productive and efficient.
7. Improved Flexibility
Implementing a GST solution can add flexibility to your business. With remote work becoming the new normal, companies need to enable their accounts team to manage finances remotely. GST software helps you achieve that. Most GST solutions come with cloud capabilities, allowing you to manage your books online from multiple devices.
Besides, a GST system helps you prepare for the future. It’s not possible to predict how GST or accounting may change in the future. But by having a GST solution in place, you can respond to new changes and developments with more agility.
8. Competitive Edge
In this competitive business landscape where accounting operations have become essentially tech-driven, companies need to keep up with the latest technological advancements. Implementing a GST solution makes your business technologically competent, providing you with a much-needed edge over your competitors.
9. Enhanced Revenue and Profits
In the end, it all comes down to the bottom line. Relying on paper-based accounting is costly. Each paper invoice error costs $53.50 on average to rectify. If you create ten invoices a day and two of them have errors, you end up paying more than $100 a day. Besides, don’t forget the cost of labor and ink and paper. All these expenses add up and plummet your overall profitability.
On the other hand, a GST solution can help you reduce unnecessary expenses, save time and resources, and increase revenue. With GST software in place, your business can be more profitable.
Fairness is the key in implementing this strategy and monitoring should only be used to protect the interests of business. Employee productivity tracker It is fact that lots of companies have invested more in the way of technology during the pandemic because they have to be as efficient as possible in performance.
Accounting and tax management are administrative tasks that can eat up a lot of your time. But businesses need to be GST compliant, and any bookkeeping or taxation errors can lead to penalties. A GST solution helps you stay GST compliant and manage your finances more efficiently.
So, what do you think is the biggest benefit of GST software for your business?