I am running a small business and am looking to buy a GST software. How to choose a GST software for small businesses and micro industries like mine?
There is a long list out there and with everyone giving varied opinions, the task becomes only more difficult. Let us look at some important points you should consider when making a choice for your GST software.
First, we must look at why should you buy a GST software in the first place. Which one to buy comes later.
Why buy GST software?
Many small business owners are lost in the maze of statutory compliances and rigid timelines. Most have outsourced their compliances to their CAs or consultants who are generally doing a fabulous job. But GST compliances are designed in such a way that if you want to be totally compliant and safeguard your interests in the long run with peace of mind, you need to have a GST software inhouse in sync with what your consultant has.
An important requirement is the requirement to reconcile your purchases with your GST as you can claim only so much input credit as showing in the GST portal. The system automatically disallows any input credit claim beyond a set threshold. Considering the high GST percentage, it makes complete business sense to be aware of which of your suppliers are paying on time and paying properly. Else your business could incur significant losses. This is the single most important reason to invest in a GST software as its an ongoing checking which must be done regularly.
Almost all GST software available, barring a handful also include integrated accounting and billing. So, buying a robust GST software serves both purposes. Your accounting gets computerised along with statutory compliances. You can thus, invest more time in doing what you do best, running your business!
This answered, let us now look at what we should look for in a GST software.
Points to consider for a GST software for a small business
1. Quick GST set-up and GST compliant invoices
A GST software meant for small businesses should allow for quick GST setup and configuration with minimum efforts and time. GST configuration involves setting up GST details like product GST rates, GSTIN for party ledgers etc. For those dealing with hundreds of products, this setup must be easy and fast. This is even more important if there is a change in GST rate in future.
Small business GST software should allow you to configure GST details at a group level which gets applied to all products under the group. Assuming you have 300 products under a group with all having the same GST rate, you can configure the GST rate at the group level instead of configuring each product individually.
It is a no brainer that your GST software should be able to generate GST compliant sales invoices. This is most important with GST being a transaction based tax. GST has well defined formats and requirements based on different business scenarios. Needless to say that all the scenarios applicable to your business must be fully taken care of.
2. Accurate GST returns
Any GST software, whether for small businesses or large, should be able to generate Form GSTR-1 and GSTR-3B in excel and JSON format which can then be directly uploaded into the GST portal. Also, the GST software for small business should be intelligent enough to generate 100% accurate returns and that too with least efforts. This is what Tally’s renowned ‘Prevention – Detection – Correction’ technology does with the triangulation report. It should be able to detect transactions with insufficient information or errors all the while allowing easy system assisted correction. With this, you are confident that 100% of your recorded transactions have been analyzed with only the right ones included in the returns filed.
3. Latest Technology
You are in 2020, so why choose software using outdated technology? Modern and latest technology doesn’t only mean having a slick modern interface, but it also means that the software has the latest technology under its hood and is also up to date with the latest laws with full data security. Security is, unfortunately, the least important point considered by most of us till we get hit once.
4. Easy to use and user friendly
The software should have a clean and simple design and user interface. Good software with tons of features may be very good for big companies having many dedicated accountants. But software with a clear and uncluttered interface is best recommended for small businesses. That said, it should be having the functionality to handle your invoicing and inventory.
5. Very easy to setup and implement
Any GST software for small business should be very easy to set up and implement. It should mould into your business in a way that you feel it was designed for your vertical only. You should have easy access to how-to videos and setup guides. Software with an implement as you use features is the best. In this area, Tally scores a century every time!
6. Ability to use it Online or Offline as per your needs
Most companies want their software in their premises. But there are many who want their software on the cloud with the ability to access it from anywhere. The current Covid-19 has only increased the number of people requiring this. You can use Tally on-premise or on the cloud.
7. Security
Whichever software you choose, it should be highly secure, both user-level security as well as data security. With Tally, your data always resides only and only on your server and it comes with a robust user security policy with detailed security rights and a password policy which you can decide yourself.
8. Quick Help and Support Ecosystem
Your business software should have a support mechanism which is always within arm’s reach. Tally has the largest partner ecosystem in India and a very large network across the globe. The online knowledgebase the Tally website, as well as context-sensitive help in the product, only compliments this further.
9. All functions easily accessible
You do not want to waste time looking for features and reports. Everything should be very easily accessible with easy to access and well-organised menus. The USP of Tally is that there are keyboard shortcuts for almost everything. That usage via a keyboard is much faster than a mouse is common knowledge.
10. Clear documents
Any GST software for small business should deliver well organised and clearly formatted documents. Clients require all information clearly laid out and really appreciate a well-formatted document with precise information which can be read in a single glance. With Tally, you need to stop worrying about going back and forth with your invoices and other documents.
11. Easily Customizable
Every business has its own unique nuances. Your software should be customizable so that you can get it modified it as per your own needs. It can be a unique workflow or additional user-defined fields in documents such as invoices sent to clients. All this is possible with Tally. You can even change your invoice formats as per your chosen design.
12. Regular Product Updates
As we all know, GST rules and laws frequently change. These GST changes could be major changes such as return format changes or minor such as rate changes. Your GST software must be well supported by the vendor with regular product updates to keep you up to date with all changes. The software should also have the flexibility to allow a user to change the GST configurations on his own for minor changes such as GST rate changes etc. When choosing a GST software for small business, product updates are a key factor to consider.
13. Integrate with other software and document export
Your software should have the capability to integrate with any other pre-existing software. You should be able to export your reports to Excel or PDF. Tally allows the export & import of data trough XML and allows you to export reports in various formats such as Excel, PDF and JPG. You can also connect to Tally via ODBC or upload data to HTTP from Tally if required.
14. Designed with business in mind
We know that you are in business to pursue your passion and not to learn accounting. So that is why it is important to choose a software that was developed keeping business in mind, thus making your job easier. Tally, is a software designed by a businessman for business. That is why Tally’s workflow mirrors your business and was the first codeless software designed. This holds true even today.
Finally, which software should you buy?
Each business is different, so must choose based on your specific needs. But ease of use with data security, not compromising on statutory compliances should be above everything else. This will surely make your life as an entrepreneur much easier.
In case you want a software that has all the above features and much more, you must try Tally once at least. Tally is the most preferred GST software for small business. A free 7-day no-obligation trial is also available. With Tally Prime, the same Tally has now got a fresh new menu-driven user interface and a host of new features that make it even more exciting to use.
You can contact us for more detailed information or in case your business has some unique or specific requirements.
You can also check out all the features available in Tally ERP 9 to find out if it fits into your business requirements. Alternatively, you could contact us in case you require more information, or send us a message via WhatsApp by clicking here.