GST Filing to Inventory Management: Importance of Accounting Software Post Lockdown
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As we face the challenge of tackling the coronavirus outbreak and the national lockdown, more and more businesses, especially small businesses, and mid-size businesses are the ones who got affected the most. Social distancing and staying at home has become the new normal. This situation has wrecked world economies, and billions of dollars have already been wiped away as markets have tumbled uncertainty looms large.
The MSMEs are tossing on a tightrope; on the one hand, they have to ensure the safety of their employees, whereas, on the other, they cannot afford to falter in accounting and compliance. So here is the point where digital transformation becomes an essential part of the businesses to adopt and not an option anymore post lockdown. We all are witnessing the way technology is expanding at such an exponential rate. Especially during the time of lockdown, it has a big impact on the way we live our personal lives, and the effect on the ways we work has been even greater than before. It has changed how we manage many different aspects of business operations. The point is, Accounting is no exception.
Opting a reliable accounting software as accounting is one of the most crucial and vital tasks you need to take care of when running a business of any scale. Especially for MSMEs, you cannot make too many errors while running your company. Hence, the need for accounting software is imperative in the overall success of your company. It is more beneficial to have accounting software to manage businesses and keep the records on track when half of the employee population is working from home and access to servers and software available at the office.
So it is very much important to know and understand why accounting software is important for businesses to post lockdown:
1. GST filing on your tips
The accounting software can help in managing the complete GST of many small and medium businesses in a cost-effective and simpler manner. It can relieve the taxpayers from the format of manual data entry into the forms by auto-populating the fields. This would assist in filing error-free returns in a short span of time. A competent accounting system will allow you to validate your GSTIN Number, Automatically reconcile your GSTR 2A and track those transactions which are eligible for ITC by comparing or matching them with the ones on the purchase registers.
The new GST return has paved the way for e-invoicing in India, where the taxpayers will now have to upload invoices in real-time. In such situations, accounting software can assist you where it helps to create GST compliant e-invoices and immediately send them to the central system for validation. Since your accounting software will be connected with the government portal, it will allow you to recover invoices anytime to clarify the inconsistencies in your books.
2. Easy Inventory Management
Inventory accounts for a substantial portion of all business expenses and has an immediate impact on profitability. It can be challenging for MSMEs dealing with large quantities of stored inventory, management of physical goods. In such a case, it's vital to develop a management system to support your business needs. Basically, inventory management consists of knowing what products are in your warehouse and where those products are located.
Here, good accounting software offers enhanced accounting capabilities to balance books, prepare reports, and set sales reminders with the added benefit of real-time inventory tracking. It instantly accesses data and receives real-time communication between sales and warehousing departments, enhancing customer service. Also, it provides up-to-date information on current inventory levels, as well as tracking capabilities of the incoming and outgoing product.
3. Saving Costs
Accounting software automates administrative operations and core calculations as well as takes proper control of your revenue model, so you don’t have to outsource your finances and its management to an external party. The software can also minimize the costs associated with printing and distributing documentation since all data is digitally stored in a secure and monitored location.
4. Improves Financial Data Security
Financial data is the company’s most confidential information and must be highly protected so that it does not fall into the wrong hands. An accounting system ensures your financial data remains safe by storing it in a centralized system that is protected by firewalls. Thus, only those who are granted access rights can see the data.
Pandemic like situations can hit a business without any warning and lead to a catastrophic upheaval in their future plans. Therefore, the need of the hour is to embrace and incubate accounting technology disruptions at the earliest and be future-ready at all times. Therefore, if you have not yet availed an accounting and compliance solution, then it is time to act fast and adopt the best accounting software and let your business thrive post-lockdown.