After demonetization, GST i.e. Goods and Services Tax is the new twist in the Indian economy which has completely altered the system of business entities of the country. The presence of GST has poured a sigh of relief for many business owners as its one nation one tax approach prevents them from paying multiple taxes. But they also need to make some arrangements to make their business entities compatible to GST.
There are more than 3 million small businesses in India with a noteworthy contribution in 42% of exports. After GST they will need to do some big alterations in their strategy, including their accounting and billing system.
Immediate effects of GST on business accounting
1 One nation, one tax, one account.
Due to presence of various taxes before GST, one had to maintain various separate accounts for taxes like VAT, excise, CST and service tax. Below is a list of accounts (excluding accounts like sales, purchase, stock) a business entity were supposed to maintain before GST.
- CENVAT credit a/c (for manufacturers)
- Excise payable a/c (for manufacturers)
- Input Service tax a/c
- Output Service tax a/c
- Input VAT a/c
- Output VAT a/c
But After GST
All taxes have been merged into one account. Following accounts are maintained now
- Input CGST a/c
- Output CGST a/c
- Input SGST a/c
- Output SGST a/c
- Input IGST a/c
- Output IGST a/c
- Electronic Cash Ledger (To be maintained on the Government’s GST portal)
Other accounts to be maintained are –
- Register of Goods Produced
- Sales Register
- Purchase Register
- Stock Register
- Output Tax Liability
- Output Tax Paid
- Input Tax Credit Availed
- Other Records Specified ( Additional records that need to be specified by the government through notice)
2 Struggle for implementation of new accounting software
The small businesses which relying on their accounting software from years, now have to purchase and install new GST friendly accounting software. A money and time consuming task. But they can’t avoid it. All their billing process needs to go through a big change to get congenial to GST.
Due investment is also required in earning expertise on these software. In fact, many small businesses are used to follow very traditional ways of accounting. Keeping records in registers and papers was in a regular practice for them. And they are not very tech savvy also. But after GST, they have to get a new software and struggle with the complexities of technicalities of the software.
Period for retention of accounts
Every business need to maintain accounts books for five years, which will be counted from the last due date of filing the annual return of the following year.
User friendly software is the need of the hour.
In a wrestle with the substantial changes brought by GST, small business entities badly need software which can provide them a perfect solution for all their billing and accounting needs. Stingo CRM is designed to facilitate the same for small businesses in accordance with GST. Its multiple features are created to facilitate the accounting, billing structure. Let’s talk about its features –
Through Stingo CRM you can have a complete control on your invoice design. It is a best billing and invoice software for small businesses.
This software allows you to send commercial quotations in email and PDF format. It will also facilitate offline download of quotations on your computer.
Through CRM, you can add a product category, sub category, and unlimited products. User will be able to view product details and price.
Through Stingo software you will be able to make bills for two types of sales –
- Billing for direct sales from lead.
- Billing for sales through quotation.
Make easy purchase orders through Stingo for procuring products and services from your vendors and buyers.
After Sale/Complaint tracking
The software has an automated system which helps to create complaint and maintain its complete record. It sends SMS to customers which help in complaint tracking.
With Stingo you can manage numerous business related reports like Sales report, purchase report, lead and billing reports by data wise and user wise.
As per taken package, the admin can manage all users and can even assign roles according to given permission.
Manage lead and log history
Things like customer track record, automated update of customers, and maintenance of log history becomes easy with Stingo.
In today’s time of technological advancements, such software’s can prove extremely helpful for small businesses. Orders, bills, invoice can be managed easily ensuring a hassle free smooth functioning of small businesses. Any small to big changes in economy of the country have a great impact on small businesses but with the help of information technology, they can manage to handle all the twist and turns with ease.