Not long ago, business professionals had to turn from pillar to post to pay their taxes. Not anymore, as the Goods and Services Tax, or GST, subsumes the various Central and State taxes into its fold and offers flexibility and convenience in paying taxes and filing returns.
GST brought an end to the age-old practice in which all businesses were required to understand multiple taxation systems and adhere to tax-specific regulations and deadlines.
However, as with any new system that is as elaborate and exhaustive as GST, there are chances of missing out on a few clauses and provisions of the new system. This article is your ultimate guide to the most effective remedy of all your GST-related problems – gst billing software.
How is GST Different from the Old Tax System?
The pre-GST era was fraught with inconvenience, as there were at least eight different types of taxes that businesses were required to account for. These included the likes of customs duty, excise tax, Value Added Tax, sales tax, service tax, luxury tax, entertainment tax, and much more.
More number of taxes meant more corruption and more expenditure on hiring tax experts. GST makes the tax and returns filing process more straightforward.
You just need to visit the government GST website, fill in the required details, create your free account, and start paying taxes. The entire process is not as simple as it sounds, though.
As the GST system is still at a nascent stage, the tax laws are frequently being amended. Moreover, understanding tax jargons such as Input Tax Credit, online ledger, composition scheme, credit note, DSC, E-way bill, and others require knowledge of taxation.
How Can a GST Accounting Software Ease Your Life?
Ever since GST has been implemented, the demand for GST accounting software has shot through the roof. A large chunk of the orders come from smaller businesses, who do not have the required resources to hire a retinue of tax experts. The large-scale popularity of GST software is due to the following five reasons:
The first challenge that local businesses face is to create a GST-compliant invoice. A GST invoice is different, as it includes a few more details than the previous one, such as UTIN, HSN Code, Tax Amount, Rate, GTA, ISD, and other information.
As a GST software prefills most of the boxes, raising an error-free invoice becomes easy and fast. A GST software also maintains inventory and calculates taxes automatically, in line with the latest GST guidelines.
For a small business, time is money. While big companies possess the necessary resources to handle disruptions effectively, a small business often does not have similar resources.
Hence, a GST accounting software can accurately fill large-scale data in the blink of an eye, something that would otherwise require multiple accounting staff.
As a local business, you are more vulnerable to issues related to data loss or breach of security. Although employees are supposed to maintain secrecy, there have been instances when a small mistake by an accounting staff led to considerable damages to the company.
A GST software eliminates the chances of a security breach and upholds your data privacy. Local businesses prefer accounting software as it reduces the chances of compromising with sensitive data.
For a local business, every penny counts. Even though GST is entirely online, you will be required to maintain tax records for audit purposes. Creating stacks of files and piles of papers would only deplete your working capital and financial reserves.
A GST software securely stores all the current and previous tax-related data, which you can access at the click of a button. Thus, you can save up on cost to spend on other productive activities.
Unfortunate incidents have the habit of knocking at someone’s door when they are the most vulnerable. Businesses that rely more on immovable records are also more prone to external damage.
Keeping all your records within the software is safe and reliable, as you can access it from anywhere and at any time.
The gstn portal has everything to make the process of filing taxes and returns easier. However, trying to achieve perfection in the first instance can do more harm than good.
Relying on a professional GST software can help you divert your attention to other productive matters, while the software takes care of all your tax-related issues.