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Running and nurturing a startup is no less than a draconian task these days. Yes, with the startup boom in its full glory, the country has been witnessing the most exciting times for startups in the last few years wherein we saw the growth and decline of some of the greatest startups ever. Yet, for most of the companies, the complexities of tax compliance is still an issue. While ERP software offers compliance functionalities, how feasible is that?
Most of the unfortunate startups that failed to see the light of the day committed the gravest mistake of keeping themselves aloof from the emerging enterprise technology solutions. Yes, pick out some of the most successful startups and you’ll see a common trait among them i.e. they all stay abreast with emerging enterprise management technologies and systems when it comes to getting ahead of the curve. ERP software is one such tool that has been accompanying scores of startups in their success journey especially helping them stay tax compliant.
Majority of startups are vulnerable to going haywire with tax management including tax compliance, tax management, tax filing and tax returns due to the limited availability of resources. Now in order to show up in the good books of tax laws and reforms, a startup ought to be aware of the taxes it is liable to pay, the different tax rates and rebates, calculation procedures, etc.
A simple glitch in the tax chain can trigger a chain of tax penalties. Yes, a small error can grow big in no time leading to expensive tax bills, which is something that a startup simply cannot afford.
Nevertheless, when planned and executed properly with the right ERP system, a startup or a small business could file apt tax returns whilst saving up big on taxes. This is the reason a startup should be well aware of the tax system. Now for that, a startup ought to make sure that its ERP software is in line with the tax reforms to ensure full tax compliance.
How ERP software helps?
With GST coming into play, ERP solutions have evolved to ensure full tax compliance. As GST affects the sale, manufacture and consumption of goods as well as services throughout the country, it is essential for a startup to be GST compliant. This single tax reform is said to replace various state administered taxes like Octroi, VAT, Excise, Service Tax, etc.
Read also: 4 Reasons your Business needs an ERP System to be GST Ready
Keeping these factors in mind, ERP software today come with multiple modules and functionalities to manage input credit, multiple tax rates, exemptions, etc.
This is an excellent opportunity for startups and growing organizations that do are not using any ERP system and the ones that are using standalone ERP, but are looking to get a new one or upgrade the existing one with a tax compliant ERP system.
A tax compliant ERP software would greatly help a startup meet evolving compliance protocols and guidelines. The startup ecosystem ought to brace itself for next-gen and tax compliant ERP solutions. Though the transition might sound a bit challenging for enterprises that are using old-school solutions, it is something that cannot be overlooked.
Sage Enterprise Management system previously known as Sage X3 is one such ERP software that has been successfully helping startups and SMEs stay tax compliant with the new and evolving tax reforms. Yes, our software is tax ready and can help small to medium sized as well as large organizations transit smoothly and painlessly when it comes to taxation.
If you are looking out for a perfectly synchronizing ERP software that will take away the pains of taxation for your startup, contact us here. Sage Software Solutions (P) Ltd. has been designing and implementing automated ERP solutions for startups and large-scale businesses for over three decades. SMS SAGE to 56767 or drop us a mail at firstname.lastname@example.org for a FREE demo.