Background:
An e-commerce startup in India, specializing in home goods, was expanding rapidly. The startup’s founder and core team were focused on driving sales, marketing, and customer service. However, the accounting processes—especially managing GST returns, reconciling payments, and ensuring financial reporting—became overwhelming as the business grew. The startup lacked the expertise and resources to handle accounting effectively, which led to delays in reporting and concerns over GST compliance.
Solution:
To ensure smooth operations and compliance, the e-commerce startup chose to outsource its accounting functions to a firm with expertise in managing e-commerce accounting and GST returns. The firm took on the responsibility of tracking sales, calculating GST, generating invoices, managing payments from various online platforms, and filing GST returns. They also provided monthly financial statements, helping the business stay on top of its financial health.
Results:
Outsourcing accounting allowed the startup to focus on business growth without worrying about financial management. The company saw a 30% increase in operational efficiency, as outsourcing helped reduce the time spent on manual accounting tasks. The startup also avoided any penalties for delayed or inaccurate GST filings, ensuring smooth tax compliance. With the accounting functions handled externally, the startup scaled quickly and confidently, attracting investors due to its sound financial practices.
