GST Compliance Made Easy: The Ultimate Accounting Software Guide for Entrepreneurs
To streamline multiple taxes across goods and services in India and make an umbrella of regulations to ensure compliance, India shifted to a completely different and new tax system on July 1, 2017. This new system, known as the Goods and Services Tax (GST), has revolutionised the way businesses can operate in India.
However, GST compliance can be tricky, especially for new entrepreneurs who have a fairly new business setup. Thus, accounting software can be a great addition to simplify business operations. Let’s evaluate the details of Good and Simple Tax software in the following points.
Why does using accounting software matter?
Such a software solution streamlines GST compliance and simplifies entrepreneurs’ jobs. With accounting software, big, medium, or small-sized businesses can manage their processes with ease. It helps maintain huge piles of documents, records, and information present at multiple locations. Preparing returns is straightforward as it automatically extracts data from the records. It also facilitates comparison between return and accounting data.
And, as taxes get calculated automatically, there is little to no human engagement required. That makes the system error-free and it also avoids data redundancy. Some software solutions also offer personalised features, which can be a great advantage for companies to incorporate financial sections in the IT system. In short, the software has several advantages. Let’s point out some of them in the points below:
- Offers accurate reports
- Delivers a simplified process
- Mitigates human errors
- Offers an extremely time-saving process
- Eliminates additional costs
What should you remember before buying software?
Before you choose a software solution to file returns, you must ask these questions to yourself:
What’s your requirement?
Assessing your requirements is the foremost consideration. The selection of the software depends on your business nature and type. A bigger firm needs several features like multiple users, cloud access, and so on, while a smaller one may do with basic functions.
What’s your budget?
Another important consideration is the budget. Understanding how much your company can afford to invest in the software solution is a big parameter here. Based on your budget and needs, you can choose the right solution.
Do you know your vendors?
Comprehending the type of vendors you work with is prudent as it helps you determine the right type of software. Understanding their types will simplify your decision-making.
Things to keep in mind before choosing a financial software solution
Don’t forget to consider the following parameters while choosing a financial software solution:
- Accessibility and security of the software
- Seamlessness and ease of use
- Customer support services and 24*7 support
Features to look for in software
Narrated below are the top features you should look for in the software:
Invoice:
The software should generate invoices considering the rules & regulations. It should state values separately on the given invoice:
- GSTIN
- HSN Code
- GST Rate
- Net Amount
- Total amount
Calculating the tax
The software solution also offers an auto-calculation feature. So, it generates invoices and reports with the tax amount for taxpayers to know the total amount that’s pending.
Security
Find software that offers strong data security for your client’s data. The software should have encryption technology that can protect data and ensure confidentiality.
A smooth return filing experience
An inventory management software can manage stock, get sales, and issue invoices. Besides, it can also prepare taxes & calculate input tax credits.
The footnote
After assessing the above-mentioned aspects, it is clear that the software has offered several advantages to entrepreneurs, companies, and individuals. It can monitor tax identification numbers and even file quarterly or monthly returns.
Besides, it also eliminates the extra time required for preparing tax returns. So, it makes compliance effortless and hassle-free. Now that you have learned the key parameters, it is time to choose an all-encompassing software solution.
