Affordable Technology for Chartered Accountants
Jash Enterprise was a third-generation wholesale business in crowded lanes of Sadar Bazar, Delhi. After Demonetization and GST, they hired a computer accountant to manage the increased work of compliance and agreed to increase the professional fees of their Chartered accountant by 20%. But after 6 month they found various gaps in their GST filings. Some of them were so disturbing and glaring that owner himself started looking into Data Entry by spending 4 hours extra in the evening.
Their business was growing due to online B2B sales and PAN India retailer reach after #OneNationOneMarket. They didn’t realize that catering to all India customers and venturing into Export Sales through Amazon Global will require them to use technology for process automation. Very soon the whole family was talking GST, Input Matching, Compliance Calendar and Transit loss of credit on their dinner table. Earlier they use to share business growth, society issues and personal matters in the family, but slowly GST matters took priority.
Friends, we all see many Jash Enterprise every day, who has grown fast thanks to Formalization of Economy, but are they safe and protected from the vagaries of Non-Compliance? Are they protected from unwarranted litigation which may hit them due to self-assessment-based law related to E-waybill, Input Matching and lots of changes GST is pouring till the time it settles?
Compliance has moved beyond just recording and reporting of Data by the Average operators who knows what to punch in the system. It is much beyond implementing POS machine and Credit Card machine or implementing payment Gateway system to bill and collect from your customers.
Every day your business is generating huge volume of Data and only a partial amount of it goes into your Financial Books and rest remains outside of it. But every data set has huge potential to make or break your business in long run, but very few people are vigilant towards Data Management or Debt Management. The reason is not because they don’t want to, but they do not find or invest in right technology tools to get crisp reports generated for them without human intervention.
Role of Chartered Accountant is changing now, and he / she should provide Data for Decision making to his /her clients. There are mobile ready and multi user tools available in the market with a wide choice and price points, which can be deployed to save precious man hours of owners and improve viability of business by taking right decisions at right time.
Earlier these technologies were expensive, so only fortune 500 companies could afford it. But now with India leapfrogging into mobile era, we can see various bolt -on and add-on tools available for Business owners to get more deeper insight of their business growing both offline and on-line.
Reconciliation and dispute resolution in time can fetch them healthy returns in terms of unblocking their hard-earned cash and credits. Many SME players get trapped in reverse cycle of working capital management because they do not have visibility of below 5 things
- Efficiency of their Purchase cycle – Vendor Payment
- Efficiency of claiming timely Input Tax Credits
- Efficiency of timely refund of GST and Income Tax
- Non-monitoring of Customer Outstanding and Debt Management Strategies
- High Cost of Capital – Debt and Equity
Today SME in India are poised to grow multiple times in number because job opportunities are shrinking and naturally it will push more and more people to start something of their own.
Our role as Chartered Accountant is to become a trusted business advisor for SME and from the beginning educate them, make them aware of the best practices and best tools. This will certainly build trust and professional relationship with your client at different level. They will start looking at you for technology solutions which are affordable and easily implementable.
Managed Services is the future because it would become a luxury to have full team in-house for every compliance affordably. Chartered Accountants can look at building their technology practice basis their Client requirement and invest time in process automation to manage large volumes.
There will be more than 3 Crore GST Registration by 2020 as per expert estimates and Chartered Accountants who are in GST practice will not be more than 1 lakh. It clearly shows a huge opportunity and lots of technology play in the areas of GST Audit, GST Compliance, Answering machine generated notices , GST Data Analytics and GST Dispute resolution by timely reconciliation and action on the open items using Process Automation.
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