Will GST change your business? We break it down

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What’s the big deal about the GST bill? For your business, it can mean huge, awesome changes!

It is the first overhaul in our taxation system since 1947, yep, that’s right the first major change since Independence. (It’s the 101st Amendment Bill- a fact for your history trivia buffs)

So, what it GST?

Let’s keep it simple- GST is the Goods and Services Tax.Right now, across India there are different taxes and tax rates. The GST Bill aims to say adios to all that confusion and implement a single tax and rate. Sounds good, so far, right? Let’s dive into how it’ll impact your business:

  1. Can the Indian Tax System be Tamed? Earlier you had to work with various tax departments of each state and compile your returns based on several regulations. With the new GST, these issues will be a thing of the past as all taxes will be integrated and the process of filing taxes is much simpler.
  2. Sales Tax, Service Tax, VAT- too many taxes?:Currently you have to pay many different taxes and it can take a lot of time to compute them separately. Now GST will combine all taxes and give you a uniform payment rate.
  3. Can you imagine a world of easy logistics?: When transporting your goods from one state to the next, your vehicles are now stopped at the borders for checks. Interstate movement will change drastically as these checks will be shorter and these taxes will be eliminated with the GST.
  4. Open, Click, Startup: All new businesses require a VAT registration to function and this can be complicated when operating in many states and following different procedures and fees. The introduction of GST will allow a single process of registration and help new startups enter and expand easier than before. With the Digital India and Startup India initiatives, you can also register your startup online.
  5. Who doesn’t love exemptions?: Businesses having to pay a higher VAT for a turnover of more than Rs. 5 lakhs will now be exempt upto Rs. 10 lakhs and above. If you have a higher turnover, fret not, here’s your reason to cheer as tax on turnovers between Rs. 10 to 50 lakhs will be considerably lower.

The GST is here to help your business grow and develop with the added advantage of exemptions and lower total taxes.

Here are the Tax rates:

The GST Council recently put forth a four-tier tax rate system of slabs fixed at 5%, 12%, 18% & 28%:

  • There are two standard rates of 12% and 18%
  • There will be a 5% tax rate on goods that fall under the category of mass consumption
  • The tax on essential items have been reduced while that on luxury goods will be higher
  • Roughly 50% of goods that fall under the consumer inflation basket will be kept at 0% to tackle inflation, while the items that will incur the 28% tax rate were previously taxed at 30-31%

Does it sound like too much for your business to keep track of? We have the simplest solution with Numberz! At Numberz, we are getting ready for new GST regime and at launch will be GST ready, and with your business can be ready too!

 

 

 

 

 

How To Auto Reconcile Your Invoices Through nu,mb,erz

  • Click on the Reconcile tab on the top

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  • You will get a similar screen

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  • Now you can choose any of the bills – paid, overdue, due later

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  • Select any invoice by clicking on the checkbox

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  • On the right column, you can see that transactions similar to the amount of invoice you chose, are displayed

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  • Now you can choose the transaction from right side column which is related to selected invoice by clicking on it

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  • Click on the reconcile button on upper right

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  • You will get a pop-up window

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  • This windows will relate your invoice to the selected transactions and you can see the details. Click on the save button to reconcile or cancel to go back

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  • You will get a success notification once it’s done

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  • Now this invoice will be added to the closed section of invoices

 

Congratulations !

Plays well with all

No matter the kind of business , over time you end up with multiple applications to manage your finances

Given numberz integrates with Tally and Excel sheets, you can ensure that all the manual work is removed. Not only are you benefiting by getting started quickly , but your accountant will be very happy that sending data and offline files becomes a thing of the past!

To sync your transactions to Tally, download the Chrome plugin
To upload your debtor list from Excel
business

5 Things Business Owners Must Know About Cash Flows

At the helm of your business, there is no job that’s not your job. While your employed peers might enjoy more specialised roles, as the boss of your own business, you need to have an understanding of the basics that drive your business. You might have your own numbers guy or gal but to make money, you need to understand your finances and cash flows. “Why?” you ask, secretly hoping that you left the world of mind-boggling mathematics after your 10th grade Maths paper. Fear not! We’re here to tell you exactly that:   

1. It’s a good weather forecast: Your smartphone gives you all the information you need for the present and the future. From the weather to the traffic forecast, it gets you ready to face anything and also tide over any storm. Cash flow collects information from your sales people, credit workers, collections, service representatives and your finance department. By collecting this information you will know how much cash you can accumulate from payments, interest earnings, service fees and collection from bad debts and therefore know if tomorrow is going to be sunny or if you need to plan for a rainy day.

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2. Know Thy Expenses: More than knowing how much is in the bank, you as a business owner need to have a fairly accurate idea of how your business runs on a day to day basis. Your business should know what you spent on instead of only how much you spent. This can be done by simply creating a line projection of outlays. Here’s an example: Let’s say you collate all of the rent, inventory and office expenses in your cash flow tool or a spreadsheet and by doing so you can pinpoint what your projection of outlays would be for the following months.

3. What’s a Receivable?: There’s a lot of jargon when dealing with finances and receivables is a fairly simple one to decode. It’s the amount that your business will receive a.k.a what it is owed – remember all the invoicing you did?   Better receivables translate into better cash flows. Your business can do better if you improve the speed at which you turn your services and/or products into receivables. This way you can develop a good yield of cash for the company.

How can you do this? 

  • Offer discounts
  • Request customer deposits at the time of delivery
  • Provide ways in which quick payments can be made by the client – payment gateways
  • Insist on credit checks
  • Make credit available to the clients – if possible.
  • Sell old inventory and issue invoice promptly

4. Play Those Payables: As your business grows, so too must your sales. How do you do it? You must check daily expenses and the extent of how you can expand sales. Always inspect and examine ways in which you could be spending on the sales that you make and control them. In this case, your suppliers are your friends. So you should let them know your financial status and develop a trust and understanding with them. Analyse vendor costs for early payments based on change in the overall costs. Look for more flexible modes of payment to improve your cash flow.

5. Happy Investors Love Good Cash Flow: As a startup, keeping your investors happy is simple – have great financial prospects. If you have a favourable cash flow ratio then half your job is done. The better your cash flow, the happier the investor and the better your relationship.   A good cash flow tells your investor that your business and his money is set to grow.

The best way to understand your cash flow is by ensuring that your costs don’t keep creeping up over your cash in hand. Your operating costs is the amount you are willing to spend on your business on a daily basis. Don’t worry about having enough cash – a good cash flow ratio allows you to have the necessary funds to keep your investors happy and wanting for more!

What’s critical is to have the pulse of your business cash flows. Yes the balance sheets are important and critical. But cash flows are the daily lifeblood – that will ensure healthy business, happy employees and a happier you!

Don’t leave money on the table

Your business can do better if you get timely insights into your receivables and expenses. Better invoices and bills translate into better cash flows. The secure and read only online banking integration, helps you get this visibility by downloading your banking transactions in your numberz account and you can easily save hours spent on reconciliation. You can also add all your withdrawals as bills automatically.

Just enter your internet banking login credentials and you can get started in minutes. We use data security standards used by all top banks & financial institutions.