If you have a budding business whose annual sale is more than 20 lakhs, you must be fully ready to embrace the change. When it is GST, the first thing it needs you to embrace is the technology driven change. So, the first thing you should embrace is the advanced enterprise technology. It is not an option anymore. You have to embrace it as a must-have technology to stay afloat in the disruptive changes. One such technology you should have that will help you achieve that end is the adoption of ERP.
One such disruptive change has taken place on July 1, 2017, which has raised many questions in the business world – right from the small businesses to the large ones. To deal with such disruptions, the businesses should be equipped with the ERP system so that they are able to deal with the GST hoopla with ease. Once a business has put into place the ERP system, it will be a cake walk to comply with the Goods and Services Tax.
Though it is still not known the possible effect of GST on the economy, government reports say that the tax reform will make doing business in India easy to perform and comply to. In fact, they say that all kinds of manufacturing and service verticals are going to witness a revolutionising financial prospect as they need to pay tax only at one point and not at multiple points.
Before the implementation of GST from July 1, 2017 the tax computations were done by the business in one of the two ways. They might be through manual means and the other through the use of standalone software. However, the entire ball game is all set to witness a complete change with GST reform. The first step towards this revolutionizing change is the tax paradigm in India is the adoption of ERP software system.
Though it is now a compulsion for businesses to comply with GST tax system by going digital compliance, you can check out the following reasons for the needs of faster adoption and compliance. By adopting the best ERP software system, you can not only be GST ready but also get many advantages. The reasons to fast adoption of GST ERP software are given below –
• Automation and Digitisation
When it comes to process manufacture businesses, they need to track many things on a regular basis so that the data discrepancies can be avoided. Some of the aspects that need regular tracking include production, bank, purchase, sales, and inventory entries. It is extremely difficult to keep track of so many aspects manually. These needs regular update and it can be done in the best way through automation of the process, which again can be done in the most efficient way through use of ERP software system. This means that there is a shift from manual processes to digital processes, which are more transparent and is in line with the reforms of GST tax. The digitisation processes will be simplified with the online transactions as well as reconciliation processing by the ERP software systems. This digital process also helps a business to avoid any fine or penalty because there is now an appropriate database in place.
• Easier and Efficient Management of Documents
With GST system, everything including the documentations will be in the digital format. All the documents, no matter whether it is regarding the returns, refunds, registration, payments, or warning notices, everything will be in digital format. With GST system in place from July 1, 2017, businesses need to comply with the e-filing guidelines. To comply with this requirement, you need to equip your business with the automated ERP software. This will help you in addressing the challenges in a better and more efficient manner.
• Business gets Compliance Ready
With GST reform in place, Indian business landscape is all set to witness extensive compliance reforms. In fact, the compliance management is now online as the new rules of tax are in place from July 1, 2017. When a business uses ERP software, it becomes easier for meeting the regulations in a more efficient and better manner. Therefore, the system will help the business entity in maintaining accurate financial records.
• Systematic Approach
With ERP software for GST compliance, the entire process will get systematic. This will lead to smoother movement of both goods and services throughout the country. It will therefore ultimately curb the overall expenses on taxes. With GST in place, there will be a wave of ripple effect of standardisation in place.
If you still don’t have an ERP software system in place, it will be more cost effective for you to get ready for it. Otherwise, the non-compliance will ultimately adversely affect the business in means of incurred penalties and fines. It may cost you few more bucks for the enhanced compliance with GST ERP software system, it will be worth it for you.