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Why is Accounting Software a Good Investment for Your Business?

Simple accounting software is widely used in most small enterprises. However, as your company starts to grow, the computations and the account maintenance start to eat up a lot of your time. This drives your focus away from your business. While zeroing in on a top accounting software can get tricky, there are plenty of options available to ensure that the accounting of your business keeps running smoothly.

With technology improving every day and plenty of breakthrough inventions being made, the most recent trend is that of a cloud-based accounting software. Let us try to understand and analyze as to why a cloud-based accounting software is a perfect option.

What is the cloud in a nutshell?

The best way to understand the working of a cloud is to understand how you access a lot of data online. For instance, when you use internet banking, you are accessing a cloud which has a lot of data saved. The cloud-based accounting software hence backs up your data and has various advantages which can be helpful for your business.

What are the actual problems with a simple accounting software?

The issue with traditional accounting software s that a lot of times there are changes that occur in calculations and the software needs to be updated constantly. When it comes to an online accounting software, the data keeps getting updated ensuring a smooth running of your system.

Another issue is the single login access feature. Multiple people cannot access the important details when they need it because offline software cannot be updated in real-time. The backups take a lot of time, and the way the data is passed is extremely unreliable or example, through a USB). This, in turn, affects the work efficiency.

Why do cloud and accounting software go hand in hand?

The best part about using a cloud-based accounting software is that it can be accessed from any device, provided it supports an internet connection. It also helps the small business owners to stay in touch with the data and their accountants without any hassle. It is not only cost-effective but also simple and has a lot of features that lack in simple accounting software. Another advantage is that you pay based on your usage. You know what you are paying for as it is a monthly renewal subscription or any plan that you take which helps you keep a tab on your expense.

The top five reasons how the cloud software actually benefits your business

1. You have an all-time information of the financial position you are in, like live updates.

2. Since there is a multi-user feature present, it makes it much easier to coordinate and collaborate with the team.

3. The updates really help you keep a tab on all the important changes and gives you more time to pay attention to other important areas.

4. No hassle of back-ups, installations, and updates.

5. The cost-effective feature kicks in. You save up a lot on the upgrades, the system administration costs and cloud service providers are extremely trustworthy with their security.

How Pharma Traders Can Manage the Impact of GST

It is no secret that the goods and services tax (GST) was launched in India on 1st July 2017. Another day in the country, another tax! And so many reports in both the print and the online media regarding what the GST is and how it will affect the businesses in India. It is ridiculous at how fast paced the tax regimes are and how the businesses are expected to grasp an understanding at an ever-changing pace. We hear you, and we would like to talk a little about what the GST is and how it will affect medical shops and pharmacies because no one else will. We don’t want to dump information, just help; so here goes.

The GST is a single indirect tax that is levied in slabs of 0%, 5%, 12%, 18%, and 28%. It’s like a chocolate that comes in different sizes, but it is not nearly as satisfying. Instead of all the other chocolates i.e. taxes like value added tax (VAT), service tax, custom duty etc., it will be one single huge chocolate for the government consumption. GST is revolutionary in that it will stop tax cascading. For example a manufacturer earlier had to pay tax twice, once when raw material was sourced, and once when the finished product was shipped out. GST will now tax the manufacturer only once so that the total cost of the product will come down and the benefit will be passed to the end customer. So no sharing too much chocolate! Also, the tax will only be levied on the effective value addition. For example earlier if a product of Rupees 100 went through two processes of Rupees 40 and Rupees 30 then the tax had to be aid three times, once on Rupees 100, the next time on Rupees 140, and lastly on Rupees 170. Now due to GST the tax will have to be paid three times but on the amounts of rupees 100, Rupees 40, and Rupees 30.

This single taxation bill has completely changed the tax scenario in India.

Effect on medical shops and pharma manufacturers

So let’s talk about the medical shops and pharmacies in India. The medicine manufacturers will have an advantage under GST, but the shop owners will not have such an easy time. India has close to 8 lakh pharmacies and 60,000 pharma distributors. With the implementation of GST, the old ways of doing business will have to be changed.

The first issue is that many medical shops don’t have a GST number and the required GST filing mechanism. As GST comes in three variants, the state GST (SGST), the central GST (CGST), and the integrated GST (IGST) vendors will have to know which tax to apply in what kind of transaction. IGST would apply in an inter-state supply (different state), and CGST+SGST would apply for intra-state supply (same state).

The second issue is that different medicines attract different GST. Thus life-saving drugs which were previously taxed 5% are expected to have increased taxes, while food supplements have already been hiked to 18% from the previous 12.5-15%, and medicine supplements are taxed at a flat 28%. These rates will be applicable for not only supplies bought after 1st July, but also the ones in inventory. Thus medical shops and pharmacies will now have to keep a close watch on what they are selling and what is the tax that they charge on it.

A solution for your GST woes

So what is the solution for medical stores and pharmacies? The answer is simple: a comprehensive pharmacy management software. A magic genie for all your chocolate! However, this can’t be just any other billing software, this has to be a specific GST software that will handle medical store billing and inventory.

The features that would make the biggest difference would be:

  1. Registering the medical shop with the government and obtaining the GST number.
  2. Keeping track of inventory, including but not limited to over-the-counter medicines, prescription medicines, medical devices, and supplies.
  3. Raising reminders when number of medicines and goods fall below a certain configurable number.
  4. Billing software that applies the correct GST as per product.
  5. Getting updated on new products and the GST that they attract from the relevant sources.
  6. Keeping track of bills and filing for tax after every configurable time period.

These six points are mission-critical for any medical shop billing software. With software like this on your side, you can effectively do business in the new GST regime. And we at Spine Software Systems are more than willing support you in your journey.

 

How can SpineBMS ERP help you save money

By Reducing Inventory cost

  • Reduced stock expiry: SpineBMS ERP works on First Expiry First Out model which automatically prioritizes consumption of stock that is first to expire. Thus, it reduces wastage of stock.
  • Demand linked stock: It forecasts demand and usage and accordingly guides to maintain only the required quantity of stock. It helps to do away with excess stock and releases surplus resources tied up with redundant stock.
  • Stock visibility across the distribution chain: SpineBMS ERP provides real time information on stock and sales at the distributor / stockist location and accordingly guides the company to reallocate the stock from the location that is not performing well to the location that is performing well.
  • Instant status of stock: Instant reports on the exact status of stock allows the company to take the timely action. SpineBMS ERP instantly provides reports on wastage, returns, swap outs, replacements, and items that are to be returned to the manufacturer.
  • Reduced handling and maintenance: Reduced stock means reduced warehousing, handling, transportation and damages cost

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5 Advantages of a Single System ERP Solution

ERP was first conceptualized with the thought to facilitate free flow of information between all the departments of an organization to gain centralized control and transparency. Unfortunately, many companies appeared in the market which were nothing more than silo software systems bolted together with weak connectors. A true ERP is a system with centralized database with different programs branching out from the main program. An ERP like SpineBMS is best suited to meet the IT demands of all the departments of a company and has the capability to bear the increasing load as the company expands.

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How an ERP Software Improves a Company’s Transparency

Every stakeholder wants to have a real time information from every perspective. ERP systems enable businesses to have greater insight and visibility into their supply chain operations. Access to this key information allows them to make critical business decisions and to maintain a competitive edge in their industry, no matter how big or small the competition may be. An ERP system enables 360° visibility into operations, so problems are more easily identified and employees can make informed decisions.

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