GST, Digital Money and Digitization, Trinity that MSMEs bow to

First came the Demonetization, followed by Goods and Services tax (GST). Government is claiming that both initiatives will lead to more digitization of economy. Retailers are still wondering how to cope with these new regulations and government initiatives. Especially smaller and medium size retailers not used to digital methods are finding it tough to cope up. What used to be an occasional unwanted encounter with a debit and credit card is now getting into every sphere of retail operations. Right from procurement to billing, inventory management, accounting and GST compliance every function in retail needs digital intervention to be able to cope up with Government’s initiatives.
Take the case of managing inventory. Retailers used to reckon inventory on a gross basis before GST. With the introduction of GST every unit must be accounted for in either goods sold or as an inventory. Other way around every unit as inventory will need an associated purchase bill. This needs tremendous effort if done manually increasing the need for introduction of barcodes for managing inventory. With barcodes stock taking, stock audit etc. is just a scan away.
Similar is the case of payment collection and reconciliation. With multitude of payments option viz. cards, wallets, cash, UPI etc. it becomes a menace to reconcile at the end of the day what amount came from different methods. A billing solution which can also take the payment through different methods at the time of billing will be a reliever for retailers. They can spend their time saved out of reconciliations on growing their business.
Another case in point are reconciliations. Reconciling Billing to Payment, Billing to Procurement, Billing to Inventory, Procurement to Inventory, Accounts to Billing etc. every day is not a scalable model for retailers. They might just be drowned with the reconciliation exceptions and cobweb spun by it.
And finally, compliance to GST. There are lot of sections of GST which the retailers are still not aware about. Take the case of preserving the bills generated for 5 years hence. Only the big retailers are set up for complying to this section, the smaller once are not even aware about it. Another example is having HSN code of every product on the bill. Retailers manually generating bills in most cases do not even know the HSN code of the product they are selling.
It is not advisable for retailers to continue with older manual methods. Retailers need a complete new approach for protecting and augmenting their turf. They need a comprehensive solution which can ease out their burden. By entering some basic billing and inventory information in a solution, retailers should be able to complete all their task and more. Solutions like JustBilling, Gofrugal and Fusion Retail allow retailers to do exactly all the above and more. These software packages allow you Bill, Manage Inventory, Manage Procure, Prepare Account, Manage Loyalty, and most importantly comply to GST.
New age requires new solution and retailers willing to adopt to new ways of doing things might be the ones to beat the blues and scale their operations.
EffiaSoft is trying to solve the above problems with their mobile based billing software called Just Billing.
Koushik Shee
Founder & CTO
www.effiasoft.com | justbilling.in
Efficient | Intelligent | Affordable
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