GST gave Boost to Cloud Based Accounting
GST in Nutshell:
In India, GST was implemented from 1-7-2017 and ever since then it has brought in a new change in the field of accounting.
GST with GSTN has made it clear that from now on Traditional Accounting is going to shift towards a new kind of accounting where in the role of cloud based accounting is going to increase significantly.
Small and Medium Businesses are in dire state due to GST and its compulsion of generation of GSTIN.
Basically, cloud based accounting is same as the accounting software we use currently on our PCs or laptop, but the only difference here is that the data entered is stored in the “Data Cloud” created by company’s servers and not in the actual on board PC or Laptop.
In short Cloud Based Accounting softwares destroys the shackles created by it’s predecessors and thus it gives freedom to the user to access his/her accounts from any device with the help of internet.
Cloud Based Accounting software is the future of accounting as it is simple, flexible and cost-effective. And small traders can use it easily and effectively.
Need For Cloud Based Accounting Software:
- For Managing Tax Effectively : It gives user the flexibility to handle their accounts smoothly and effectively. You can set up different tax rates for different types of transactions, then have your online accounting system calculate the tax for each sale and apply it to your invoice instantly.
- For Customization of Invoices : Under GST, the ministry of finance has specified that it must contain the GST Identification number (GSTIN) of both the seller and the customer along with the name and address of the same. So for this customization in invoices and Cloud Based Accounting Software is the best option.
- For GST Filing : Under GST businesses has to file returns on monthly, quarterly and yearly basis. Earlier businesses used to prepare their return at the end of the quarter and year, but now using the same old approach will increase the workload of the business houses many folds. So accounting software with GST integration is the most suitable option.
Advantages of Cloud Based Accounting Software:
- It is flexible. The user can log into his/her account on any device having internet connectivity. Thus providing the user with the power of analyzing company progress and status on the go.
- Data Security. One of the unique feature of Cloud Based Accounting is Data Security. As data is stored safe in the cloud server of the company, the account holder is tension free of creating backup of his/her data.
- Decision Making: The process of decision-making is simplified by cloud based accounting as it provides the user with interactive interface which gives information on current incomes and expenses, bills receivables or payables and profit-loss statement on the go. A user can easily check this statements on any device with the help of cloud based accounting.
- Easy to Understand: A person who is not from any commercial or accounting background can also operate and make accounting entries. This helps small traders who are not used to of maintaining a books of account.
- Cost Effective as compared to traditional accounting softwares: As there is no requirement of any installation of software, it makes it user-friendly and cost-effective. Small and Medium Businesses can access it from anywhere and that too without implying on a specific device.
In today’s scenario everything is moving towards digitization and as a result cloud based services are gaining its momentum. So future of accounting is Cloud based only, as it gives an added advantages than the traditional accounting software.
- Posted on Jul 21, 2017
- By Dhruv Rudani
- 0 Comments