Time is money. Each minute saved on administrative work can be utilised for growth, innovation, and improved customer service. For companies in India, one of the most significant challenges is dealing with Goods and Services Tax (GST) compliance. Operations such as calculating tax rates, creating invoices, and filing returns consume a lot of time and can be complicated. Save Time with Auto GST Calculations.
But what if you could simplify this process? What if you could automate the entire GST process to ensure accuracy, save time, and always be prepared for taxes?
This is where automated GST calculation and efficient GST billing software step in. At WebLedger, we are familiar with these issues. Our product, WebLedger Books, is meant to assist you with GST compliance with ease. This blog post will discuss how automated GST calculations can revolutionise your business, define the top features of a good tax calculator and billing platform, and demonstrate how WebLedger Books simplifies GST billing and report generation.
The Manual GST calculation: Why Automation is Necessary
Let’s look at the problems with managing GST manually:
Human Error is Common: Even careful people can make mistakes. A wrong decimal, tax rate, or HSN/SAC code can cause errors, fines, and a lot of extra work.
Tedious Calculations: Computing CGST, SGST, IGST, and UTGST for each transaction is extremely time-consuming. You must also keep in mind varying tax rates (0%, 5%, 12%, 18%, 28%) and supply types (inter-state and intra-state). The task becomes complicated, particularly if you have numerous transactions.
Advanced Input Tax Credit (ITC): It is non-realistic to understand and claim Input Tax Credit correctly in order to minimise tax expenses. Doing ITC manually can be confusing and result in lost savings.
Remaining Updated with Law Changes: GST regulations and tax rates may shift. Remaining informed of such changes and implementing them in billing and bookkeeping may be an ongoing challenge.
Frustrating Invoice Preparation: Preparing GST- compliant invoices with all the required details – such as GSTIN, HSN/SAC codes, and tax segmentation—is a tedious process that eats into valuable time.
Annoying Return Preparation: GSTR-1, GSTR-3B, and other return deadlines are tight. Preparation of these returns manually usually involves collecting data from various sources, thus raising the risk of errors and near-end-of-time pressure.
GST Audit Problems: When it comes to an audit, disorganised or incorrect records can result in significant issues and possible penalties.
These are problems that clearly demand an improved method of GST management. This is where automation can be of assistance.
The Benefits: Save Time with Auto GST Calculations
Automatic GST calculations are a necessity for modern accounting tools. They eliminate the necessity for human calculations and bring with them a number of advantages that enhance your business’s efficiency, accuracy, and adhere to regulations.
1. High Accuracy Every Time
The prime advantage of automated GST calculations is that they eliminate human errors. With an intelligent tax calculator in your invoicing software, the software automatically applies the correct GST rate depending on the HSN/SAC codes, transaction type (intrastate or interstate), and tax slabs you have defined. This ensures all invoices, calculations, and tax values are accurate. You won’t be worried about errors causing differences or penalties.
2. Considerable Time Savings
Consider all the time you are spending on manual computation, rechecking numbers, and preparing data to file GST returns. Auto GST calculation makes all this easier. Invoices are generated with accurate tax amounts easily, and return data is automatically filled. You and your team save time, which can be used for sales, marketing, product development, or customer support. This improved efficiency can translate into greater productivity and growth.
3. Simple GST Billing and Compliance
An efficient GST billing software that automatically calculates taxes makes billing hassle-free and mistake-free. Here’s how:
Quick Invoice Generation: Simply type in the product or service information, and the software uses the right GST and draws up a compliant invoice in seconds.
Auto Application of HSN/SAC Codes: Most advanced systems allow you to designate HSN/SAC codes for your products/services and automatically associate them with the right GST rates.
Easy Input Tax Credit Management: The program automatically records your output tax and input tax, making it simpler to determine and claim a valid Input Tax Credit (ITC). This minimizes the overall cost of taxes and enhances cash flow.
Current with Legislation: Good GST software firms keep their systems updated with the current GST legislation and tax rates. Your billing and calculations remain compliant without you having to monitor each update.
Reduced Penalties: Correct calculations and timely compliance greatly reduce the chances of fines for faulty GST returns.
4. Always Ready for Taxes
Being “tax ready” implies that your financial information is in order and accurate, making tax filing easy. With automated GST calculation and built-in billing software, you’re always ready.
Real-time Data: Your sales, purchases, and GST transactions are captured in real-time, providing an up-to-date picture of your tax obligations and credits.
Clear Audit Trails: Every transaction is accurately recorded and calculated, providing you with a full audit trail, which simplifies audits immensely.
WebLedger Books: Your Intelligent GST Management Companion
At WebLedger, we understand that GST might be complicated for Indian businesses. That’s why we developed WebLedger Books, an easy and effective solution to all your accounting and GST requirements. With our auto GST calculations and in-depth reporting, you can do everything yourself easily.
Our Auto GST Calculation Feature: Easy and Accurate
WebLedger Books features a straightforward auto GST calculation mechanism that removes the guesswork. Here’s how it works:
1. Create Your Products/Services: You can enter your products or services in WebLedger Books and associate them with their respective HSN (Harmonised System of Nomenclature) codes for goods or SAC (Service Accounting Code) for services.
2. Create GST Rates: You can set the appropriate GST rates (CGST, SGST, IGST, UTGST) for each HSN/SAC code.
3. Automatic Invoice Processing: When generating an invoice or logging a purchase, simply choose the product or service. WebLedger Books will automatically determine the GST based on the following:
The HSN/SAC code you have selected. The GST rate you have defined for that code.
The nature of the transaction (in-state or out-of-state), charging CGST+SGST or IGST accordingly as required.
4. Inclusive and Exclusive GST Options: WebLedger Books supports inclusive and exclusive GST, allowing you to calculate them correctly regardless of how you set your product prices.
Detailed Report Generation in WebLedger Books: Information to Support Informed Decision-Making
WebLedger Books assists you in making informed decisions and filing your GST smartly with helpful reports. Our simple report generation option allows you to generate various GST reports within minutes, so you are always “tax ready.”
Here’s what you can look forward to from our reporting facility:
GSTR-1 Summary Report: Get a comprehensive summary of all your sales to file GSTR-1.
This report comprises:
- B2B invoices with buyer’s GSTIN.
- B2C sales.
- Export invoices.
- Debit and Credit Notes.
- Outward supplies summary by HSN/SAC.
This report is necessary to file your GSTR-1 correctly and on time.
GSTR-3B Summary Report: See your total tax liabilities clearly, input the tax credit you’ve availed, and outward and inward supplies clearly, all in GSTR-3B format. This makes you aware of your net GST liability and facilitates payment.
Input Tax Credit (ITC) Register: Record all your admissible input tax credits. This report separates the GST charged on your purchases, enabling you to maximize ITC claims and minimize tax payments.
Sales Register with GST Details: All your sales transactions with details such as GST rates, calculated GST values, and HSN/SAC codes. This report is useful for checking and analyzing your sales.
Purchase Register with GST Details: Like the sales register, this report provides you with a detailed picture of your buys and the GST paid, which is useful for claiming ITC.
GST Reconciliation Reports: We are developing features to assist you in matching your purchase data with GSTR-2A and GSTR-2B. This will assist you in identifying any mismatches and rectifying them before filing.
Financial Reports: Apart from GST reports, WebLedger Books also provides valuable financial reports such as Profit or Loss Statements, Balance Sheets, and Cash Flow Statements. These are combined with your GST information, providing a comprehensive view of your business’s financial position.
Preparing these reports is easy with WebLedger Books. Select the report type, specify the date range and the system will generate a clean and precise report in a matter of seconds. This is time-saving and gives you valuable insights to make strategic decisions.
Beyond Calculations: How WebLedger Books Saves You Time
WebLedger Books saves you time with not only auto GST calculation and reporting but also many other useful features:
Client and Vendor Management: Store all your client and vendor data in one location, such as GSTINs, contact numbers, and transaction history.
Expense Tracking: Track and categorise your business expenditures to monitor your spending and keep your financial books accurate.
Inventory Management: If you are selling products, WebLedger Books assists you in monitoring the level of inventory and controlling stock. You can even prepare purchase orders to avoid stockouts or overstocking, which may lead to financial problems.
Multi-Business and Multi-Branch Management: If you operate more than one business or have several branches, you can manage all of them with a single platform. This provides you with centralized information and consolidated reports.
Cloud-Based Accessibility: With the use of cloud technology, you can access your financial information at any time, anywhere, on any internet-enabled device. This provides tremendous flexibility for remote working.
Data Security and Privacy: We are concerned about the security of your financial information. WebLedger Books employs robust encryption and security protocols to protect your information.
Easy-to-Use Interface: WebLedger Books is easy to use, even if you’re not an accounting wizard. The simple, intuitive interface simplifies complicated tasks.
To Whom Auto GST Calculations are Beneficial?
Auto GST calculations and billing software benefit various businesses and professionals:
Small and Medium Enterprises (SMEs): Small enterprises usually have limited accounting personnel. Automation minimizes the amount of human effort, decreases errors, and keeps them compliant without causing any additional expense.
Freelancers and Solo Entrepreneurs: Individuals find managing finances challenging. Auto GST calculations assist them in fulfilling their tax requirement without the need for a full-time accountant.
Retailers: Retailers handle multiple transactions daily. They require instant GST billing and precise sales reporting.
Wholesalers and Distributors: These organizations handle high volumes of goods and intricate supply chains. They require precise GST tracking for smooth processing and ITC claims.
Service Providers: As a consultant or designer, you require the generation of GST-compliant invoices. Automation simplifies the process.
Chartered Accountants (CAs) and Accountants: Although CAs are specialists, they can utilise auto GST software to manage numerous client accounts more effectively. It allows them to concentrate on providing strategic recommendations rather than wasting much time on inputting numbers.
Making the Switch: A Beginner’s Guide to WebLedger Books
It may seem daunting to switch to an automated GST system, but WebLedger Books makes it simple.
- Sign Up and Onboard: We have an easy setup. We lead you through filling in your business information, products, and services.
- Define Your Settings: Easily configure your GST rates, HSN/SAC codes, and other settings.
- Start Billing: Generate bills and track purchases with WebLedger Books, automating all GST calculations for you.
- Run Reports: You can run reports at any time to see your GST liability, track input tax credit (ITC), and prepare for filing.
We also assist you to guide you through the process with a seamless transition.
Conclusion
Efficiency and precision are imperative in today’s business. Slowing down GST calculations and billing the traditional way can be cumbersome, error-prone, and financially penalised. With WebLedger Books’ automatic GST calculations, tax compliance can be made easier.
Visualise being “tax ready” at all times, with rapid and precise GST billing and effortless report creation. That’s a reality WebLedger Books presents today.
Forget wasting hours on complex tax calculations. Let WebLedger Books take care of these things for you so you can concentrate on building your company. Come visit WebLedger’s website to learn how our features can save you time, minimise stress, and help your business grow. Sign up and reserve a free trial today.
