Goods and service tax or GST will have a tax to reduce all taxes. It will bring in “one nation one tax” rule.
Although there will be some initial transition challenges, GST will bring very clarity in many areas of business. One of the areas is accounting and bookkeeping. Read on to learn about accounting entries under the GST.
There will be separate accounts for excise, VAT, CST and service tax. Here is a list of some of the accounts that currently maintain any business (except for accounts like Purchase, Sale, Stock) –
Excise dues payable to producers (C)
Cenvat Credit A / C (for manufacturers)
Output VAT A / C
Input VAT a / c
Input service tax A / C
Output Service Tax A / C
For example, a merchant Mr. X should maintain minimum basic accounts –
Output VAT A / C
Input VAT a / c
CST A / C (For Inter-State Sale and Purchase)
Service tax a / c [He will not be able to claim any service tax input credit because he is a trader with output VAT. Service tax can not be set against VAT / CST]
Under GST all these taxes (excise duties, VAT, service tax) will be credited to one account.
The same trader X will then have to maintain the following a / cs (in addition to accounts such as purchase, sale, stock) –
Input CGST A / C
Output CGST A / C
Input SGST A / C
Output SGST A / C
Input IGST A / C
Output IGST A / C
Electronic Cash Ledger (GST should be maintained on government GST portal to pay)
For a list of accounts to maintain, please read here.
While the number of accounts is more clearly, once you go through accounting, you will find that this record is very easy to keep. One of the biggest advantages of X will be that it can set its input tax on sale with its output tax.
Accounting information systems typically comprise five elements: inputs, processes, outputs, storage and internal controls. The elements work together to provide reliable information effectively and efficiently. An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators and tax agencies.
An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting financial reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
There are five fundamental principles behind every information system. The first is the control principle. Simply stated, all accounting information systems must have proper internal controls. Internal controls are procedures and practices controlling and monitoring business activities.
Accounting information systems typically include the general journal and four types of special journals. These are the sales, cash receipts, cash disbursements, and purchases journals. Information systems also commonly include accounts receivable and accounts payable subsidiary ledgers.
The main advantages of an accounting information system are the increased speed of processing the numbers, efficient organization, and classification and safety of inputted data. This contrasts the manual evaluation of information, which involves writing out the data by hand and doing time consuming calculations.
The purpose of an accounting information system (AIS) is to collect, store, and process financial and accounting data and produce informational reports that managers or other interested parties can use to make business decisions.
The general ledger functions as a collection of all balance sheet, income and expense accounts used to keep a business’s accounting records. At the end of an accounting period, all journal entries are summarized and transferred to the general ledger accounts. This procedure is called “posting.”
In a more traditional web page architecture, an index.html page might link to other HTML pages on the server that the browser will download and display from scratch.
An SPA approach allows the user to continue consuming and interacting with the page while new elements are being updated or fetched, and can result in much faster interactions and content reloading.
In addition, the HTML5 History API allows us to alter the page’s URL without reloading the page, allowing us to create separate URLs for different views.
Once inside of the SPA, the application is able to dynamically fetch content from the server through AJAX requests or websockets.
This allows the browser to keep the current page open while making requests to the server in the background to fetch additional content or new “pages” altogether.
If you’ve ever begun a search query and had intermediate results appear below the input form as you were typing, then you’ve witnessed dynamic queries taking place in the background that updated those DOM elements.
In fact, the server queries can fetch any kind of data, often taking the form of JSON payloads, strings, or even HTML elements that are already prepared for rendering.
Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. Accounting software may be on-line based, accessed anywhere at any time with any device which is Internet enabled, or may be desktop based. It varies greatly in its complexity and cost.
In many cases, implementation (i.e. the installation and configuration of the system at the client) can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Most midmarket and larger applications are sold exclusively through resellers, developers and consultants. Those organizations generally pass on a license fee to the software vendor and then charge the client for installation, customization and support services.
Other organizations sell to, consult with and support clients directly, eliminating the reseller. Accounting software provides many benefits such as speed up the information retrieval process, bring efficiency in Bank reconciliation process, automatically prepare Value Added TAX (VAT) / Goods and Services TAX (GST), and, perhaps most importantly, provide the opportunity to see the real-time state of the company’s financial position.
What are the Functions of Retailing? Various parties to the production and distribution of goods play a pivotal role in any economy keeping the robust volume of trade and commerce flowing through the market, leading a nation to prosperity. One of the important participants in the distribution network is the retailer.
The most common examples of retailing are the traditional brick-and-mortar stores. These include giants such as Best Buy, Wal-Mart and Target. … An example is Kroger, which offers both brick-and-mortar stores and online delivery. Large stores often also provide food services, like a restaurant.
Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain.
Characteristics of Retailing. Retailers are referred to as middlemen or intermediaries. They occupy a middle position, receiving and gassing on products from producers and wholesalers to customers. Services carried out by retailers are different from those of wholesalers.
The major benefits for each include: Access to Customers – For suppliers, the most valuable benefits provided by retailers are the opportunities they offer for reaching the supplier’s target market, building product demand through retail promotions, and providing consumer feedback.
A store that sells smaller quantities of products or services to the general public. A business that operates as a retail outlet will typically buy goods directly from manufacturers or wholesale suppliers at a volume discount and will then mark them up in price for sale to end consumers.
Realkeeper Softwaer is a GST-ready cloud based Realkeeper software
from , As the most trusted cloud based Realkeeper software provider, is known for implementing innovative solutions that effectively manage customer and vendor expectations, competitive pressure, and new business models. With a vast experience in providing highly proficient business solutions across a wide spectrum of industries, its warehouse and logistics software not only combine latest technology with standard practices, but are also the result of extensive research, collaboration with world-class clients and exploration of all business needs.
As the most trusted cloud based Realkeeper software provider, is known for implementing innovative solutions that effectively manage customer and vendor expectations, competitive pressure, and new business models. With a vast experience in providing highly proficient business solutions across a wide spectrum of industries, its warehouse and logistics software not only combine latest technology with standard practices, but are also the result of extensive research, collaboration with world-class clients and exploration of all business needs.
Realkeeper is a perfect cloud based and GST enabled warehouse management software for storage facilities, logistic establishments, organizations dealing in distribution, supply chain, retail and manufacturing.
Use inventory items to reduce data entry
Spend less time on data entry by setting up the things you buy and sell regularly as untracked items in Realkeeper software – just enter a description and price. Using inventory items makes creating quotes, invoices purchase orders and bills quicker and means fewer errors.
The Goods and Services Tax (GST), an item-specific fixed levy was introduced by the Indian government on 1 July 2017. This simplified taxes but also brought with it the necessary paperwork for filing GST returns. Businessmen also need to keep note of the GST rates on different items. Managing it manually requires a considerable amount of effort unless you’re digitizing the process with Realkeeper GST software.
Realkeeper ensures users are conducting business in an organized and GST-compliant fashion. Manually, businessmen and entrepreneurs have to assign GST-included prices to their products, after calculating the new rate. Realkeeper does this automatically.
In the process of accounting, during bookkeeping, a bank reconciliation statement compares the transactions made by the organisation as shown in its bank statement, with the ones shown in the organisation’s own accounting records and highlights the differences and suspense entries.
Quick access to company’s financial health is the need of the hour for every business to be successful today. The present scenario says, analyzing the cash flow, transactions and cash balances are the toughest tasks for a business owner. These reconciled statements are used to identify the bank balance and cash flow. Despite the presence of multiple accounting software in the market, many organizations are not opting modern techniques & struggling hard with the manual processes- showing their dissatisfaction or distrust on modern Accounting software.