Companies spend an estimated 11-15 hours per month on billing, and that’s excluding the time required to make the process GST-complaint. Additionally, the cost of manually processing a single invoice can range from $12-$30.
While GST implementation has simplified the taxation process, businesses still need to file GST returns and submit GST reports. Having a manual process for this can increase your costs and errors. Therefore, it’s essential to have a GST billing software solution that automates the entire process.
Here are the best features of GST software.
1. GST-Compliant Invoices
After the implementation of GST, business owners had to generate invoices first and then make them GST-ready. GST billing software solutions resolve this hurdle as you can generate GST-ready invoices, with details like:
- GSTIN of the supplier and recipient
- SAC/HSN Codes
- Applicable GST rates
- Different applicable GST taxes such as SGST, CGST, UTGST, and IGST
With GST software, bookkeepers and accountants don’t need to spend hours making their invoices GST compliant. The entire process gets automated, as you can generate GST-compliant invoices with a single click.
2. GST-Ready Reports
GST reports are another essential feature of a GST billing system. The GST regime requires taxpayers to file monthly, quarterly, and annual tax returns. These returns need to be filed in a specific format as specified by the GST authorities.
For example, if you’re liable to deduct TDS, you need to file a return in a GSTR-7 form. For outward supplies, you need to file details in GSTR-1 and GSTR-3B forms. Manual management of all these returns and reports can be not only tedious but also prone to errors.
The best GST software solutions allow you to file GST-ready reports based on your requirements. You get access to all the filing forms and formats so that you can stay GST-compliant all the time.
3. Tax Calculation
As a taxpayer, understanding the taxation system and the changes being implemented can be challenging. Businesses would hire accountants and bookkeepers to overcome this hurdle, which led to increased operational costs. However, not all small businesses can hire and maintain an in-house finance team.
GST billing software simplifies all your taxation hassles. It comes with real-time tax calculation capabilities that allow you to file taxes without any errors. Data from TurboTax showed that the error rate of paper-based tax returns is a whopping 21%, compared to only 0.5% for e-returns.
Implementing the right GST software helps you file error-free tax returns. You can eliminate common tax errors, reduce accounting costs, and increase operational efficiency.
4. ITC Sync and Reports
The GST regime enables taxpayers to claim Input Tax Credits (ITC) on inward supplies and GST paid. You can claim ITC when you file GST tax returns without fail. Therefore, it’s essential to record each transaction you make and each supplier invoice you generate and consolidate that data in a single system.
The best GST software solutions automate the ITC claiming process by synchronizing various records. These tools also notify you about unsynchronized reports so you can take immediate steps to fix them.
5. User-Friendly Interface
User-friendliness is an essential capability of GST software that many business owners tend to ignore. The core purpose of a GST billing solution is to simplify the invoice generation and taxation process. If you implement a complex system, your team will make mistakes, which will nullify the positive effects of a GST solution.
Therefore, it’s critical to find a GST system that is user-friendly and easy to use. All members of your team, especially those associated directly or indirectly with invoicing, billing, or taxation, should be able to use the system without any issues.
6. Cloud Access and Multi-Platform Support
With remote work becoming the new normal, it’s essential to have the ability to manage your business and finances remotely. Most GST billing solutions come with cloud access, enabling you to stay on top of your business anywhere and anytime.
In addition to cloud access, a GST billing system should also support multiple platforms. If you rely on a remote workforce, it’s not possible to find employees who work on the same OS or platform. Multi-platform support allows you and your employees to do their job regardless of the device, platform, and OS they use.
7. Reporting and Analytics
GST software systems come with robust reporting and analytics features. You can consolidate all your financial data in one place and generate visual reports. These reports would give an in-depth idea of where your business stands, the areas where it’s performing well, and the areas that require improvement.
With such reports on hand, you can make informed business decisions. You can identify bottlenecks and inefficiencies in your business and address them promptly.
8. Third-Party Integration
You might already have numerous software solutions implemented for your business, such as ERP, CRM, HRM, and more. If you add a new system, you’ll need to invest time and resources in managing and maintaining it. This can lead to unnecessary consumption of time and resources.
Most GST billing software solutions come with third-party integration capabilities. You can integrate it with other software systems in your business to create a consolidated management environment. When looking for a GST system, find a solution that integrates with essential apps like payroll management and inventory management software.
9. Data Security
Lastly, the best GST software solutions come with cutting-edge data security. Financial data is arguably the most sensitive information of any company. A data breach can reveal details about your business and customers, resulting in financial and reputation loss.
GST software comes with proven security standards that help companies ensure the highest level of security. Some common security features available in GST solutions are multi-factor authorization, password protection, anti-virus protection, and backup & restoration.
Companies don’t realize that they spend a significant amount of time and money on manual billing and invoicing. A GST software system comes with various features and functionalities that simplify the entire process and helps your business stay GST compliant.