A Chief Financial Officer has a critical role in any business in maintaining the cash flow, managing finances and ensuring the productivity of employees is not compromised. Having access to the right information, at right time and in a precise manner is the need of the hour. This is where GST MIS Reports come into the picture and here let’s understand how CFOs can use MIS Reports to get more done.
MIS Reports (Management Information System) help CFOs and decision makers of a company take informed decisions for the organisation by coordinating, controlling, analysing, and visualising factual data which is presented in a crisp and orderly manner. MIS Reports aid CFOs in achieving their ultimate goal in a corporate setting: to increase the business’s value and profits while minimising losses and reducing errors. This is achieved by giving managers timely and pertinent information so they may act faster and more wisely.
In this article, we will discuss in detail, how CFOs can use GST MIS Reports to increase productivity and run the business successfully with lesser roadblocks.
1. Cumulative Reports
In any large or small organisation, data, if not managed can be a cause of misinformation or erroneous data exchange. The crucial business data needs to be well organised and presented in a format which is easily comprehended by the top management. MIS reports help to store critical business information in an organized manner enabling quick access whenever required. MIS reports assist in managing and maintaining corporate data so that management can utilize it to make decisions.
Example:
GSTR 3B Report: Through MIS reports, the management can get overall information of GSTR 3B, GSTR 1 or the other returns summary in a tabular format where the details will be shown filing period-wise, GSTIN wise and PAN wise. Information is presented in an organized and comprehensive way so it can be used to take the crucial decisions.
2. Trends and Analysis Reports
Data is presented analytically in MIS reports, making it possible to analyse trends and aid in precise forecastings like tax rate-wise analysis and sales analysis. Specifically, in GST, all the return filling data, data from vendor compliance, and ITC data will help the CFOs take informed decisions and analyse business trends.
Example:
Sales Analysis based on GSTR 1 Filed: Month-on-month sales report on the basis of GSTR 1 filed so the management can identify how sales are changing on a monthly basis and take necessary actions to improve the sales process.
3. Reports Supporting Strategic Planning
CFOs have a significant function to play in a company’s financial structure. And GST MIS reports play an important role in forecasting the future. The top management makes plans and strategies according to the business trends and data available. The information provided by the MIS Report must be accurate and trustworthy in this situation. In order to eliminate the possibility of human error, the MIS reports are generated by the system; in our case, by our most reliable and dependable offering – IRIS GST Software.
Example:
ITC Utilization Report and Tax liability discharge by Cash Payment: To finalize the cash budget of any organization, tax liability is an important outflow of funds. This MIS report can help the user to finalize the cash budget required for payment tax analysing the trend of payment made in earlier tax periods.
4. Error Reports
The GST MIS reports offer vital details about each activity’s component that aid in problem identification. Reports can be downloaded for multiple filing periods and multiple financial years so even backdated / historic issues can be identified. CFOs and tax managers can maintain a year-to-date overview of all GST Returns, monitor them for discrepancies, and take corrective action as soon as possible to maximise input tax credit.
For example:
GSTR 1 vs GSTR 3B: Through the GSTR 1 vs GSRT 3B comparative MIS report, the management can easily identify whether the tax liability is under-reported or over-reported in GSTR 3B in comparison to GSTR 1. Also, management can then take corrective action focusing on which business vertical’s GST compliance is not at par.
5. Efficiency Reports
MIS Reports are prepared at the GSTIN level, PAN level or group level, which helps the CFO or tax heads to analyse and compare the details at the group/company level. This assists them in faster and future-proof decision-making, thus improving efficiency.
MIS Reports are useful for gauging and tracking the organisation’s performance. Monthly sales and purchase data can be easily tracked through the MIS analysis. Therefore, MIS reports are essential for boosting business productivity and improving efficiency big time.
Example:
Counterparty-wise report on the basis of GSTR 2B: Through the counterparty-wise report on GSTR 2B, the management can identify the vendor-wise total purchase value and input tax credit received along with how much input tax credit has been claimed. The management can take action to maximize the input tax credit and ITC loss can also be reduced.
6. Performance Reports
Relevant GST data and information about the business get stored and maintained as a part of the MIS database. You can use this database to compare your present performance to what you accomplished last year in order to gauge your growth.
Example:
Division code-wise sales based on GSTR 1 filed: MIS reports can help the management to get information of sales as per GSTIN wise, company wise or at the organization level, thus, it helps to compare the sales and total tax liability month on month basis and in different legal entities.
7. Preventive Reports to Reduce Litigation
Using MIS reports correctly and frequently can help the user take corrective actions in case of any discrepancy before the GST department notices it and sends legal notices. GST litigation cases are seemingly rising every day and businesses are finding it difficult to manage the SCNs sent by the government and defend their cases. It is always better to take preventive measures to avoid and reduce litigation.
For Example:
Purchase Register (GSTR 2P) Reconciliation with GSTR 2A/2B: This report shows the overall reconciliation of ITC as per the data uploaded in the purchase register and matched with GSTR 2A and 2B. It also shows how ITC can be claimed in GSTR 3B. So, the user can analyse ITC with various ITC flas like whether ITC is available or not, whether GSTR 1 is filed by the vendor or not or in which month the user has actually claimed ITC in GSTR 3B. This will reduce the chances of losing ITC in case of a GST Department Audit.
If excess credit has been taken, the same can be identified and reverted on time, so that penalty, interest liability and GST Litigation can be avoided.
Conclusion
The increased rules on financial functions, higher disclosure requirements, and more governance and monitoring have made the CFO’s job much more challenging and diverse.
The GST environment is dynamic and ever-evolving. The primary goal of any organisation is to increase its profitability, increased cash flow and long-term viability. Therefore, no company can afford to undervalue the importance of MIS Reports in GST.
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GST MIS Reports by IRIS GST Software
Now that you know how important GST MIS Reports can be, why don’t you try them for yourself?
The GST MIS report is IRIS GST Software’s smart feature that enables top management or decision-makers to quickly assess the compliance level. MIS reports will offer a thorough analysis of mismatches, total GST turnover, maximum ITC utilisation, and other decision-making criteria. You get…
- Easy Download Format: You can download the MIS Reports easily at any time with a single click.
- Source Agnostic: IRIS also offers comparative reports even if the user has not filed the returns through IRIS GST software. The details for comparative data is fetched directly from the GST portal and reports are prepared in less than a minute.
- Comprehensive: MIS Reports are prepared at the GSTIN level, PAN level or group level, which helps the CFO or tax heads to analyse and compare the details at the group/company level. This assists them in decision-making.
- Microsoft Excel® Format: MIS Reports are provided in Microsoft Excel® downloads along with the base data which are used to prepare the report.
- Multiple Financial Years: Reports can be downloaded for multiple filing periods and multiple financial years.
- Graphical Representation: Analyse your data in a simplified way through the analytical dashboard powered with powerful charts and graphs.
