All the people related with business are aware about the accounting software and how much importance it holds to related to the accounting procedures of businesses. In today’s era, a lot of people are starting their own businesses (startups) to get rid of the accounting-related issues. Hence, a new feature has been introduced recently in accounting software. Present day software has included GST returns filing feature in it. This feature makes the task of filing taxes procedure hassle free along with the managing of accounts in a reliable way.
Earlier, businessmen used to spend huge amount of resources and yet they used to face numerous problems in handling their company finances. The accounting software offering GST attribute to the users they must need to follow several GST rules and regulations. And, maintenance of the customer accounts is their basic necessity.
Why Accounting Software is important for Business
Accounting is essential for the business world as it always display your financial activities and also shows and maintains your business health. It is highly necessary to track records of financial activities of business for the purpose of growth of government and the economy of our country.
The accounting related tasks are handled easily from anywhere and anyplace by using suitable software. The software can be accessed on the computer or on your phone to easily and reliably maintain your business accounts such as transaction auditing, invoices taxation and other operations related to accounting.
Accounting Software must contain the following features:
- Quickly accessible: A user should be able to quickly access rapidly to his account. The accounting processes such as billing and invoicing should be physically accessible to save time.
- Accounting under GST: Your online accounting software must follow all types of taxations like file return records of the transactions and the tax rate computation is a significant feature of accounting software. To maintain all these activities, software must rid you off from the trouble and be just a click-away.
- Secure: The accounting related information is needed to be very secure and accessible to no one else. The chosen software must be authorized and trusted, so that you do not worry about your data loss. That’s why the accounting software is based on cloud to offer greater storage and reliability to its customers. Cloud-based software does not require users to install and maintain software on distinct computers.
A businessman needs software that manages all accounting activities and billing, auditing, invoicing, payrolls and all the records that can help him to pay taxes without any problem. Furthermore, the software must follow all the rules and regulations that come under the law concerning business field.
People need suitable accounting software in which all the mentioned features are available. These features must make the user comfortable, simplify the accounting process, easy to use and lastly the most essential feature that it must be highly secure and justify all the requirements of the user.
GST for Businesses
Goods and Services Tax (GST) has brought numerous entrepreneurs, who were not paying taxes before, within the tax net to increment the tax revenue of government. Furthermore, the transactions occurring in the economy are being confined in official statistics, producing higher GDP. It has incremented tax collections and decremented the budget scarcity. Hence, the government is now able to invest more on the economic growth.
Effect of GST on Businesses
- Simple taxation:
Business corporations invest huge resources to handle numerous taxes at numerous points. Complying with various regulations in various states makes the procedure a bit intricate. Now, GST will make this procedure easier by consolidating different taxes.
- Sales and Services Business:
Companies (such as restaurants) that fall under sales and services duty have to compute the VAT. They also have to compute the service tax on the items distinctly, which in turn makes the calculation procedure complicated. However, GST will treat sales and services as one, making the process comparatively simpler. The taxes will be calculated on the aggregate sum now.
- Registration process:
Startups require having a Vat registration via sales tax section. Businesses functioning in different states have to deal with many issues concerning the various processes as well as fees in every state. A consistency in this procedure will be brought by GST. A centralized registration process will come in order making the process of starting a business corporation and extending it in various states simpler.
- Logistics cost of businesses:
Transport vehicles get held up from moving across different states because of minimal border tax as well as check post problems. Interstate movement of transport vehicles have become cheaper and quicker from the tax elimination. This has lowered the costs linked with maintenance of high stocks, since there is now organized shift of goods. Also, GST has reduced logistics costs of corporations generating non-bulk goods by 20 percent rate. Example of the non-bulk goods: coal, cement, steel and fertilizers.
- Higher tax exemption:
Business with a turnover higher than Rs 5 lakh has to acquire VAT registration and pay VAT as well. GST will raise this limit, to roughly Rs 10 lakh. And, businesses with turnover from Rs 10 lakh to Rs 50 lakh have to levy taxes at lesser rates now. Therefore, this is a benefit for small businesses or startups.
Negative Effect of GST on Businesses
- The suggested Service Tax in the country is roughly 18-20%. All the business services will be expensive and this is a major disadvantage of GST Bill.
- There are few retail items with the prior tax rate of just 4%. Though with GST it will be expensive such as garments and clothes.
- The regulation of business is presently of central and state government so it is a bit intricate for businessmen.
- All the credits are online now; hence it is impending for startup owners who are free from paying taxes. Furthermore, GST has three kinds of taxes and every tax will require maintenance. This is not quite easy for startup owners.