We are in the 21st century, where automation is something every industry or department demands to speed and ease the work. For CFOs automation must be a top priority because they oversee the financial stratagem and are likely to generate & deliver precise data whenever required. They hold some incredibly important responsibilities. With responsibilities come a lot of challenges. Here’s where automation plays a major role to ensure integrity, swiftness & actionability. Goods and services tax aka GST automation is another important thing that CFOs need to give serious thought to. GST must be paid, and one can’t get away with it specially when you are a regular taxpayer. But the forms and the data required in this is massive and doing it manually can be very daunting.
Reasons why GST Automation should matter to the CFOs
GST is indirect taxes imposed in India on the supply of goods & services. There are many GST challenges that many companies are facing today, hence it is important that the CFOs shift their focus to the automation of GST in their firms. There are many problems faced by companies which makes it important for the CFOs to consider GST Automation.
1. Reconciliation to claim tax credit
For a company to claim 100% tax credit by reconciling the data is supposedly a simple process. But little did they know that this process would take more than the expected human resource and a hell lot of time. This process of reconciling the data requires the team to be in constant touch with the vendors to make the alterations for filing returns. Finding mismatches or missing entry in the return that has been filed by their vendors, will require the team to contact the vendors for the missing entries. Manually editing or adding is easy when you have few vendors, but when there are thousands of invoices in a single month’s entry and if there is even a 5% mismatch in each, then the number will get huge. This task will take days, weeks, in fact, a lot of time where there will be no end to your worries. Having GST automated will reconcile the data and solve the problem in a few clicks.
According to WorkMarket’s 2020 In(Sight) Report, 53% of employees agree they can save up to 2 hours a day through automation, and 78% of business leaders feel that automation helps to free up to 3 hours a day.
2. Multiple Users, Multiple Logins
There are many organizations that have multiple business units or plants located in different states, where they designate a user for each unit. In such cases, each user of the different business units will have to log in separately from a different location to carry out the GST compliance through the common portal. It eats a lot your time that fetters with your on-time GST compliance. Having an automated GST solution will help you do this in less time and with accuracy.
3. GST Compliant Invoices
It is easy for an organization to generate the small number of GST compliant invoices, but it is not game to generate invoices in huge numbers. One needs a lot of time to generate bulk GST compliant invoices in the right format that can be submitted on the portal. With an automated solution for GST, things can be easier and you can easily generate thousands of GST compliant invoices that are easily accepted at the GST portal.
4. View, Reject or Delete Bulk Invoice
As an enterprise when you upload more than 500 invoices on the GST portal you cannot view, reject, correct or delete these invoices. If the number is less, then no hurdles will be faced. The biggest challenge comes when you upload in bulk because rectifying an invoice will take some time so rectifying more than 500 invoices manually will consume a lot of your time. But an automated GST solution will do things in just a few clicks no matter what the number is. It is foreseeable that a GST solution will help solve many GST return filing issues. It eases the tasks and reconciles data fast.
Take Away: Automation is a Solution, Not a Problem
Automation helps to enhance your business by welcoming new processes and new approaches. It increases the efficiency of the CFOs and their team, allowing them to complete the work faster than expected. GST automation allows the companies to file a return with ease and reconcile data with ease. Gone are the days when handwritten ledgers worked, today with thousands of companies and each having multiple business units, doing everything manually will never allow them to finish the work.
Today CFOs are noticing the speed and quality offered by automation; in the Oxford Economics study, “How Finance Leadership Pays Off”, 73% CFOs said that automation is improving their function’s efficiency.
So, this is a call to all the CFOs to automate GST the indirect taxes on the goods & services and enable your teams to work more efficiently and smartly. It is time to digitalize your process and make your teams and companies efficient.
If you are looking for an automated GST solution for your firm then Cygnet GSP is the best for you.