Step-by-step guide on GST Registration

GST marked as the biggest tax reforms in India since 1947. It’s a unified tax implemented by current BJP Government with an aim to erase all state or central government indirect taxes. GST subsumes 11 Indirect taxes that were levied on the sale of goods and services by central or state Government. GST made indirect taxation process simpler for small and medium scale enterprises. It will also boost economic growth in a long run. New small businesses will be benefited from this new tax law as they have to pay less tax under composition scheme (SMEs with Rs.20 – Rs.50Lakh turnover).

As we are saying that GST made taxation easier. So, let’s have a look at its registration process. In this article we will cover all details regarding GST registration with below-mentioned points:

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Revised GST – Why it’s a best Diwali gift for traders?

Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.

Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.

On 6th October Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.
The GST council slashed rates on 27 items and 12 services.

Here are the details of revised tax rates on goods:

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GST Council trims tax rates to ease the filing process

GST Rate revised

Since its implementation on 1st July, 2017 GST has been always in the news due to its high tax rates & bit complicated tax slabs also Govt faces lots of criticism for it.

Recently RBI forecast GDP growth rate at 7.3% (2017-18), which is lower than last year’s GDP growth rate. To main economic stability and for a higher GDP growth Government decided to revise tax rates.

On Friday Finance Minister Arun Jaitley announced new tax rates after a long & fruitful discussion with GST council members.

Continue reading “GST Council trims tax rates to ease the filing process”

Growth can kill your business: Don’t plan your organisational growth before reading this

Companies with high employee retention issues are hard to succeed. As we are digging deeper into analytics we are becoming closer to have good maths on these points.
 
How much of new employees your existing organisation can handle and what’ll be it’s average and worst financial conditions.
 
We advice companies with high employee cost to revenue ratio, to keep an close eye on that ratio. If at any point that ratio is exceeding 0.4 points in any directions, your organisation will have trouble handling it.
 
So we’ld advice, have a process in place. And a good training program for new employees at the services that is giving you higher sales volume and higher profit. And keep an close eye on it. And keep ramping up sales here. But understand that ratio.
 
Grow up team in new services slowly. And so the sales.
 
Organisational turbulence is one metrics that takes most companies go down. But it’s hard to see early on. Often the problem arises after 5-6 months. And make it difficult to handle, even if you are highly profitable.
 
Growth kills more businesses at faster rate, and stability kills businesses at a slower rate. So keep growing, but understand stability keeps you liquid.
 
So before you keep growth on trajectory, ensure fund of at least 3 times that of CIH needed, hence a profit index of 200-300%.
 
If you are planning speeder growth and you are just 100% in profit index. Takes external investment of another 2times of CIH needed, suggested in Periodic Profitability Graph, within one month of beginning the growth implementation. And if in any moment during high growth, your profit index reaches 120% or below, ramp sales up and you need to keep that number there to not fall out pray of downward spiral.
 
For high growth, I mean to say at par or above 20% of your present organization head count.
 
Hope that helps.

Straightening the revenue curve

Once you’ve achieving recommended CIH, for couple of months and continuous good sales for 6-8 months, your next job as a business owner should be about straightening the revenue curve.

Might be now your revenue graph seems like this:


What you want to make it is like this:

Look we are not growing our revenues like anything, but we are ensuring our revenues curve straightens towards top. This ensures we can at least have this many revenue at any given month. It removes the basic fear of decision making if you don’t know if your next month sales will plummet. This also can help you in planning your hiring, fund planning, stock planning etc. This makes you now a serious businessman.

Now if we study the current graph of yours it might be a result of the issue of sales or product delivery. But now an effective CEO needs to ensure his curves are straightened on top of which he can make baseline decisions as we just discussed above.

Now let’s see the few steps necessary to make it happen:

  1. Ensure your sales guys are motivated continuously, well trained, and perfectly compensated.
  2. Ensure your delivery people have tools to make work faster.
  3. Ensure you created and operational structure & efficiency into the system.
  4. Ensure you align your company according to a profitable market segment.
  5. Now push the sales & hire if necessary.

And now ensure minimum target is set and make sure your organisation achieve it each month or quarter. Hope it helps :)

Ask us if you need any help doing these planning inside SlickAccount.

Do you know how different your customers are?

Customers are different even though they purchase the same products or services from you. They all require different treatment, isn’t it? And you are responsible for building an organization that can better serve the kind of customers that gives you more value. 

Once you have some customers, profitable businesses figure out the customer segment worth focusing at and weed out customer segment that don’t bring them any value or profit. All good managers and entrepreneurs know the power of this kind of data. They separate their customer base and continuously segment it. They continuously understand who their customers are and how they are changing.

Now let’s see how different and unique your customers are. Use a spreadsheet (or a CRM software). Add the following columns to your spreadsheet against all your customers name.

1. Channels they came from

2. The geography they belong to

3. The business they are in

4. The older or younger the organization is

5. The older or younger the decision maker was

6. The size of the company

7. The revenue of the company

8. Who in the organization contacted you

9. Who authorized you the money

10. Who got benefited directly from your service in the company (eg: the marketing team or the CEO or COO etc.)

11. The sales they gave you

14. The services they got from you

15. The quality & support they demanded

16. The profit you got from this customer

17. The effort you needed to market/sell them

18. The effort you needed to service them

Now apply 80-20 rule to this. Focus 80% of your energy and staff on serving the most valuable customer segment and 20% serving less valuable. Both things are equally important. While most valuable customers will give you most of the cash, less valuable customers may show you a different future. They can show you if there’s a new market segment emerging or a new kinds of product you can launch to capture a big potential.

Focus your marketing, sales, copy of your website, the product, the contract, the investments accordingly.

As a small business want to grow big this will make you focus your energy and resources in building more value and wealth. You save time, become more knowledgeable about the outcomes and bring more profit.

What else? What more can you do with this customer data? Do this and comeback and comment how this helped you understand your business better.

Preparing your to-do-list for work. The late night vs the morning prior to office

For the first time I did a to do work list in the morning before coming to office; as quite a few successful entrepreneurs I know does. I used to do it after coming to office or else at night before sleeping.

The difference I feel is quite drastic. 

Night is best for creative thinking, long term strategies and so milestones. But morning ones before office is best for very short-term planning. Just Today.

Wow! It feels like you’ll get more work done during the day and rapidly move forward.

What’s your experience and how do you make yourself check the boxes out?

The most common reason for business failure

The most common reason for business failure is people don’t invest in stuffs they should. And that’s called not taking risk.

Can this tool make me more efficient and I can get more out of what I’m investing and can get success done quicker. 

They just continuously look into their wallet and tells oh scrap I shouldn’t invest in it. Else I’ll not have money for tomorrow. And that’s why they just keep having the money on their wallet and they never could increase it.

And it’s not just about monetary investment, but more often it is the case.

And don’t laugh, you might be in that state too. I know, I was there too.

And thank God we didn’t built SlickAccount software on that rule. We always hated to show something that deters people from investing. And that’s the common thing accounting softwares do. We instead focus on incomes and cash in hand. It’s OK to invest. But can you get this much in this amount of time?

This thing is so subtle. But you can see it everywhere around SlickAccount. And it’s a biggest secrete in making SlickAccount work for a lot of small businesses.

So invest on stuffs that can make it easy for you to reach your goal fast and buy you time. But don’t spend on stuffs that’s independent of this relationship. You can do that later.