Small businesses usually tend to use Microsoft Excel for GST invoicing and billing. However, they often face difficulty maintaining their books because of certain drawbacks of these applications.
MS Excel lack several key advantages of a dedicated accounting software. For example, it takes a prolonged time for manual data entry other than the non-availability of audit train. Also, Excel comes with a higher chance of human error during data entry, chances of data corruption due to accidental deletion and offers no real-time financial data handling system.
Every business should operate with dedicated GST software in India to complete their accounting functions. These applications offer a robust platform which automates most of the calculation process and eliminates chances of human error. There are numerous such programs both desktop and could-based that you can opt for.
These software usually require a monthly or annual membership fee for usage; however, the number of features and benefits at offer makes GST invoicing as well as return filing accurate and hassle-free.
Advantages of using a GST Software
There are several benefits of using a GST compliant accounting software. Let’s take a look at why CAs prefer these applications.
- Efficient Invoicing
The government has made it mandatory for registered businesses to upload their invoices onto the GSTN. These forms carry more than 20 different fields, which can significantly increase the chances of an unintentional error.
GST compliant applications can eliminate the need for manually calculating the returns for such forms. It is a significant improvement over conventional means.
- Automatic GSTIN Collection
GSTIN is mandatory for all registered individuals, and they should showcase it in their invoices. You also need your customer’s GSTIN when generating purchase and retailing statement. Not having the same can cause delays in billing.
Some software enables you to send a link via email or SMS to a customer which they can use to collect the GSTIN. Upon clicking this link, the customer can fill his/her details including the identification number. Moreover, the GST software in India will auto-populate them after the customer provides the data, eliminating the need to enter these details manually.
The software also gives you notifications about whether the request has been sent or not, whether the customer replied or not, and can issue reminders for the same.
- Item Master
An item master is one of the features of GST India software that lists all the goods or services that you offer to your customers. Using this feature, you can add the type of item (goods or services), description of the item, HSN code, the price of an item, and several other important details.
- Contact Master
Similar to goods and services, you can create a contact master that lists all the details of your customers in the software. A contact can include customer name, GSTIN, place of supply, shipping address, billing address, etc.
- Automatic Determination of the Place of Supply
You have to declare whether the supply of goods or services is interstate (outside the state) or intrastate (within the state).
Best GST software can automatically determine and auto-populate the place of supply based on the customer details you enter. Thus, you don’t have to provide any state specific information manually.
However, installing such systems may put severe financial burden on your company’s working capital. You might have to procure and install dedicated workstations to run such software.
Thankfully, you can avail an advance to overcome the financial difficulty. There are several financial institutions that offer business loan for chartered accountants to eliminate the monetary burden to upgrading a CA setup. Leading financial institutions such as Bajaj Finserv provide these loans within 24 hours and without the need for any collateral or lengthy documentation procedure.
- GST compliance and filing
These accounting tools aid with GST compliance and makes tax filing hassle-free. Some of these programs also come with error detection and correction which helps to ensure that your GST filing is correct.
- Universal data access
One of the primary benefits of GST software in India is access of data from anywhere. You can view, check, and verify any information in real-time even from your smartphone. These products also enable you to send this data to another individual.
Other than the above, GST software enables you to grant different access rights to different users. You can also restrict what they can view or edit.
Make sure you know how to apply for GST before you opt for such software. Also, make sure to compare the GST software that CAs should invest in to find the perfect accounting tool according to your business requirement.