Small companies are now faced with two major problems, one is failed compliances, the resultant huge penalty payments and the other is the not able to maintain proper books of accounts. Legal compliances are an integral part of any business. It ensures that the business runs smoothly, avoids penalties or legal actions that hamper operations.
Small businesses include freelancers, professionals, sole proprietorship firms, partnership firms, and private limited companies. Following are some of the compliance areas:
Limitations faced by small businesses:
Trained staff: Small companies are always limited by financial resources, which has a spiralling effect on manpower resources. Small companies cannot hire highly paid qualified resources like chartered accountants and tax consultants. On the other hand, qualified staff does not want to join smaller companies as they feel they will have limited exposure and it will dent their growth prospects. Financial issues are forcing the small businesses tohire low cost untrained employees, who does not completely understand the ever changing compliance scenario.
Accounting Software Applications: Higher level of compliance can be achieved with the use of expensive accounting software applications like ERPs. ERP software applications involve high cost of installation, implementation, support, maintenance and staff training.
These companies often gets into this paradoxical situation and always ends up paying huge penalties to relevant authorities. Instead, if they are provided with a simple to use and easy to understand invoicing and accounting software application that guidesand alerts them to take necessary actions and file required reports and returns, they can better manage the risk of failed compliances and huge penalty payments.
Cloud Records Private Limited,developed a cloud based invoicing and accounting software application to maintain the business records like invoices, vouchers, ledgers and generate required reports as per the guidelines given by various tax authorities governing the small companies. This application is developed in India for Indian companies. Please visit www.ceaar.com to know more.
Rama Krishna Akkaraju (CEO)