Another fiscal year (2019-2020) is coming to an end. This is the time of the year (June-July) when businesses start over with new budgets, estimations and most importantly – new hope. But you might be wondering why a VAT return software should be your number 1 priority now, right?
In this blog, we will make it easy for you. We will break down the need and benefits that come with a VAT automation system and why it is a “MUST” for you. So let’s get started!
Riding the pandemic storm with automation
After already spending half of it, we can safely say that 2020 has turned out to be a disastrous year for businesses. The global coronavirus pandemic has forced us to rethink how to operate our businesses.
Organizations have slowly started to embrace the “new normal”. People will have to conduct their activities in a changed social and economic environment. This will mean only the smartest will survive and thrive.
Rethinking our business operations means doing what is absolutely important for the survival of the business, and skipping the avoidable where we can. We have to think of ways in which we can minimize costs and increase efficiency at the same time.
How to do that you ask? Well, Automation holds the key!
Manage VAT the easy way
Manage VAT the easy way
Introducing a smart way to do business enables you to adapt to difficult situations. A solution like VAT return software decreases human involvement – cuts costs and also minimizes risks of error. So even if it seems like a significant cost while implementing, smart automation systems ensures the smooth running and longevity of your business.
Going ahead, running your business, there are a few things that you cannot compromise on right now. A VAT software is one of them.
Decoding the history of VAT Return Software
Previously, Bangladesh used to follow the VAT act of 1991 – which required companies to send hard copies of VAT returns regularly to the National Board of Revenue (NBR). This used to take up a lot of time and was a big hassle for both parties.
There were a lot of errors and fixing such issues took up a lot of time and money. The lack of transparency also meant that the government was losing a big chunk of money every year due to frauds and TAX evasions. Recording, maintaining and keeping track of so many paper documents was becoming virtually impossible.
Then came the new VAT act (2012). It required businesses to submit VAT returns monthly through a simple online form. To facilitate this and make it even more simpler for both NBR and the businesses, VAT return software has been introduced.
As part of the NBR’s steps to automate the value-added-tax system, the first call for such software use came in September 2018.
Through software use, NBR’s primary objective was to ensure that they get the actual amount of VAT without any evasion. VAT is the biggest source of state revenue in Bangladesh.
Okay, but why do YOU need a VAT return software?
Well firstly, because you MUST. NBR has made it MANDATORY for businesses with over 5 crore taka in annual revenue to use a digital vat return system.
Most businesses have welcomed this move as this is good for the long term economy. This will also make the VAT submission process easy and less expensive and time consuming, along with increasing transparency.
Now, you may think implementing a digital VAT system will be a hassle for you. But instead, it makes your life a lot more easier. You don’t have to think about manual VAT returns and calculations. A VAT return software does that for you.
Businesses can preserve books of accounts and VAT-related documents using automation. Subsequently, they can easily provide the authorities with data as per the requirement of VAT offices. Life made simple.
Moreover, a VAT software costs a lot less than hiring a professional VAT expert. Plus, a digital system solution is your one time investment for a lifetime of results.
Syed Mushfequr Rahman, project director of VAT Online Project of NBR, once said in an interview that the government will be able to lower the VAT evasion rate to 10-15% with the automation of the VAT system.
How to choose the perfect VAT return software?
NBR has also made it easy for businesses to choose VAT software. There are only a few NBR approved VAT software in the market in Bangladesh. If you want to comply with NBR rules and VAT and SD Act, 2012 – you should only go for solutions approved by NBR.
You will see a lot of providers in the market. But not all of them will be the perfect choice for you. When deciding on a VAT return software suitable for your business, keep in mind the following:
The solution has to be compliant and consistent with the VAT and SD acts of 2012. And it is also needless to say that NBR approval is also needed. So, before buying the software, make sure it complies with all the VAT laws in the country and is also approved by the regulator.
A great example can come from the experienced software development firm – Southtech. It’s VAT management solution EasyVAT is one such NBR approved software. The solution also conveniently generates 12+ mushak reports.
To make the automation worthwhile, you should make sure that the software provider also offers good after sales services. Support and maintenance are critical in the sense that users often seem to complain about these the most. Be careful not to get into any deals with companies unable to provide good support service.
You might see a range of different companies coming out with promises of solving your problems with software solutions. But you should remain vigilant about only working with companies who are experts at what they do. For your VAT return software implementation, go with companies with a proven track record automating financial and accounting systems.
Modules and Reports
Once you decide to start the project, you will see that there is more to a VAT solution than just complying with NBR rules. You will see that an integrated accounting or a VAT return software can do more for your business. For this reason, consult with experts and understand and know your requirements thoroughly.
See what modules are offered and which ones should you implement. Reports are also vital to say the least. Go with a solution which listens to your needs and meets them perfectly.
Through your research, you should be able to understand which companies are credible and which are not. Automating your accounts should be no child’s play. Only let proven experts handle your accounts and go with the best options you have, even if it costs a bit more.
Apart from these, an easy User Interface (UI) is also important. See if the system is easy to use or not. That way, you don’t have to worry about running the software from your end. Make certain that reports are accurate.
Also, keep in mind..
Before purchasing a solution, make sure that it has systems of automated report generation and printing facility of VAT returns and other documents related to purchase, sales and challans. You also have to ensure that the software allows you to submit all applicable ‘mushak’ reports digitally.
Adding to that, businesses must preserve the hardcopy of the documents for five years and supply those to VAT officials as and when needed. Moreover, VAT officials have to be given access to the VAT return software for audit and other purposes.
Security of the software is another major issue. See if the provider can provide a fully secure software system. 100% security needs to be ensured by the system to prevent hacking and other types of data tampering.
Do your research before deciding to implement a software. Talk with companies regarding your requirements. See which company and solution suits your needs the best.
Choosing the right VAT return software will make sure that you will not have to stress about your VAT obligations anymore. Tell the software what to do and it will take care of it.
EasyVAT - The Software you can trust
Don't get stressed out!
All these rules and stipulations might stress you out as a business owner. But if you have the right technology partner and the right plan, there’s nothing to worry about.
In fact, you will start to notice the benefits of using a VAT return software down the line. An automated VAT system, along with a digitized accounting system is a combination for sure success for any business.
Smart businesses are incorporating these software more and more. Reports have shown that companies having more automation, suffered less losses during the pandemic.
EasyVAT - A Perfect VAT return Software
With EasyVAT, you can swiftly generate all mushak reports and submit e-copies of final VAT returns accurately to government officials. And the bonus is – you can also consolidate sales and inventory information of your business in real-time.
But why take it from us? Schedule a demo for the smartest VAT return software today and see for yourself.