Small businesses devote a lot of time to be compliant with tax regulations, right from issuing a GST compliant invoice, to filing the returns correctly and on time. GST Accounting Software designed for small businesses can be of great assistance in these matters of compliance. You can manage compliance with minimal time and effort, and use the time saved for doing the most important things for the furtherance of your business.

Below are 5 helpful tips to choose a GST Accounting Software for small businesses:

GST compliant invoices

GST is an indirect tax levied at every stage of a product's journey, from manufacturing to consumption by the end user. So every invoice you issue must be GST compliant. The GST Act provides certain mandatory details and must be included in the invoice. The type of invoice issued also changes depending on the type of supply made. If the goods being delivered are taxable, you must provide a taxable invoice. On the other hand, if you provide goods or services exempt from tax or if you have chosen to register for GST within the framework of the concordat, you must provide the method of supply. Similarly, there are separate invoices for exports.

Billing is an important part of any business; GST makes it more important. Your customer will only be able to claim input tax if you issue a corresponding GST invoice. Otherwise, it will be denied and the trust you have built will be affected. Being a small business, that is very important.

The GST software you choose should be built-in to capture all the invoice details that force you to capture the non-statutory details required by the business. In addition, GST accounting software should have built-in intelligence to understand the type of transactions done and automatically generate legal invoices. For example, if you are supplying non-taxable goods, the GST software will automatically generate a supply invoice. There are integrated GST accounting software for small businesses to automatically generate GST invoices that generate different types of invoices based on the type of asset. Small business GST accounting software avoids all errors like wrong tax form, amount, etc. by automatically in the calculation.

Fast and Easy Set-Up

 GST software for small businesses should get you up to speed with minimal effort and time. To connect, you need to process GST details like GST rate for goods, GSTIN for party registration, etc. If you are dealing with hundreds of products and GST accounting applications require you to set up GST details for each product, this is a time-consuming task. It is also more difficult to update if there is a change in the GST rate.

Prevention and alert capabilities

Prevention and alert capabilities are crucial if you are looking for GST accounting software for small businesses. Prevention is better than cure, and your GST accounting software of choice should have built in functionality to prevent all possible errors while recording the transactions and alert the users.

This becomes possible if the GST accounting software is intelligent enough to read through the details such a rate, party registration type, State etc. defined at the master level ( products, party ledger etc.) and accordingly predict the value/tax type that is required in the transactions.

Let’s say, if your party ledger is configured with different state and you are selling taxable products, the GST accounting software should be intelligent enough to know the tax type that is required i.e. IGST. In case, if a user chooses a wrong tax type or tax ledger is all together missed, the GST accounting software should prevent and alert the user about the discrepancies.

This way, all the possible errors at the source level can be avoided. 

If you are on the lookout for a GST Accounting Software equipped with all the compliance features required by small businesses, you must try Busy. You can take a 30 day free trial to see it in action for yourself.