Background:
A service-based company in India, offering IT solutions, was facing difficulties with managing its finances, particularly with the ever changing GST regulations. Despite having an in-house accountant, the company struggled to keep up with tax law changes, which resulted in missed deadlines for GST returns and occasional errors in tax filings. This led to potential fines and a sense of financial disarray within the company.
Solution:
The service provider chose to outsource accounting functions to an accounting firm with deep expertise in service-based industries and GST compliance. The outsourcing partner took over responsibility for regular bookkeeping, GST return filings, and ensuring that the company complied with the latest tax updates. The firm provided monthly reconciliations, helped track and claim ITC, and ensured timely filing of GSTR-1 and GSTR-3B.
Results:
With outsourced accounting, the service provider was able to achieve consistent compliance with GST regulations. There was a 40% reduction in the time spent on tax-related tasks, and the risk of incurring fines due to late or incorrect filings was eliminated. The company also benefited from improved cash flow due to better management of GST credits and claims. The outsourcing solution allowed the business to focus on delivering quality IT services and expanding its customer base without the distraction of complex financial management.
