SMBs or small and medium businesses play a major role in the India growth story, contributing 45 percent of the total industrial output and 40% share of the total exports. There are 60 million Indians who depend on the SMB sector for employment, and there are 1.3 million jobs created yearly.
An important aspect of all SMBs would be tracking the debtors and ensuring that payments are collected before the due dates. Cash flow is an integral part of business success when it comes to SMBs, both inflow, and outflow.
What Are the Payment Challenges Faced by SMBs?
With changing times, the needs of the customers of SMBs have also changed. This has led to the following challenges faced by SMBs:
Multiple Payment Modes
In this digital age, most customers would prefer to make online payments. Conventional modes like cash, cheque payments, or bank transfers are slowly becoming obsolete. It becomes difficult for SMBs to provide facilities for multiple modes of online payment which might be complicated.
The business must reconcile the payment received with the pending dues. Since SMBs don’t have an integrated accounting system, mapping the receipts to the customers becomes a challenge.
There aren’t sufficient volumes generated by SMBs to justify the use of multiple online channels. This leads to a high cost per transaction which hurts profitability. SMBs go back to cash transactions causing inconvenience to the customers.
Working Capital Problems
Business owners start facing working capital problems. Getting loans from approved financial institutions becomes difficult due to a lack of credit history and SMBs start to face a continuous shortage of capital.
Inadequate Customized Solutions
There aren’t sufficient customized solutions to fit the different payment requirements of SMBs. A tailormade solution is an answer to this problem.
Khatabook – A Viable Solution For SMBs
To ease the problems faced by SMBs, Khatabook has come up with an Android app that enables you to manage your debtors digitally. With more than 10 million downloads, Khatabook has proved to be the required solution for SMBs.
Khatabook helps you to maintain your business and personal ledgers on your mobile phone. It has been used in more than 10000 cities all over India. With over 14 lakh transactions and used by more than 1 crore customers, Khatabook has benefited SMBs.
Features of Khatabook
Here are some benefits of using Khatabook:
This is a free feature where your customer gets a payment reminder for every transaction. This leads to greater controls and faster payments.
All transactions, whether debit or credit, are seamlessly recorded on your mobile phone. You can access this information anytime you want!
Khatabook allows you to update information related to your business in minutes, letting you concentrate on growing your business.
No Language Problems
Since the Khatabook App is multilingual with more than ten languages like Hindi or Hinglish, anyone can use it!
How Can I Use Khatabook?
Here are the steps to using Khatabook:
Download the App
You need to download the app from Google Playstore, and then you will be prompted to select the preferred language.
Find Out Your Cash Flow
You will be able to find out your cash flow status from what you owe your creditors and what is due from the debtors. You can send them messages to inform them of their current status.
Log in details
You need to log in with your mobile number and request an OTP. You will then be asked whether you want to prepare a business or personal ledger. You will have to enter your name and that of your business. You can then add new clients.
For this, you need to add the details of the client. For each client, you need to mention the amount you owe them, or they owe you. You need to choose the option of whether you want a message to be sent to the client.
You can get the updated status regarding the net receipt or payment against each client. There are options to Whatsapp the customer using PDF as well. You can add as many customers as you need.
Creating a GST Invoice
If you are a supplier of goods and services, a gst invoice is mandatory for availing input tax credit.
The following information must be present in a GST invoice:
- Invoice number and date
- Name of the customer
- Both billing and shipping address
- GSTIN of both the customer and the taxpayer
- The supply destination
- The SAC or HSN code
- Description of the goods being transported including unit or quantity
- Gross taxable value and applicable discounts
- CGST/SGST/IGST – The specific rates of the taxes and amount
- Reverse charge mechanism, if applicable
- Supplier’s signature
Where the recipient of the goods and services is not registered, and the value of the consignment is over Rs. 50000/-, you need to provide the recipient’s name and address.
You need to ensure that the GST invoices are issued before the deadline as laid down by the GST Act.
How Should I Select a GST Billing Software?
To ensure that your business is GST compliant, you need to install a GST billing software. You can install it using a gst billing software free download.
The following points need to be kept in mind when selecting a GST billing software:
The software should work both online and offline as per your business requirements. Online software should come with data encryption so that your confidential data is not accessed by any third party.
Security of Data
When using online software, you can use antivirus software to protect your data. Some security features would be the access of login ID and password visible to you, the business owner.
Every software must come with some basic features which help you to calculate your tax, generate invoices as required by you, and help in the compliance process. Different currencies should be supported.
You should invest in software that can meet the growing needs of your business by facilitating smooth migration to the latest software.
Grow Faster With GST Compliance!
There are a lot of benefits, such as a single tax rate when you adopt GST. So be GST compliant and invest in the right software. The sky will be the limit for you.