The short-term financial reserves that a company needs to respond rapidly to financial stress and seize opportunities are provided by working capital. It provides a safety net to a financial downturn that might impair the business’s ability to buy the required inputs to function as well as to service debt obligations.

Protecting cash and minimising cash leaks is one of the simplest strategies to manage working capital. Under the GST regime, ITC is mainly dependent on vendor compliance i.e. your supplier should file their GST return declaring the outward supplies and make the tax payment. If your supplier does not comply, it will cause a major dent in your cash outflow. This process of claiming pending ITC with apt reconciliation can reduce your operation cost, and increase the net margins of your business, thereby, improving your working capital.

Along with inappropriate recon, there are other areas where businesses witness cash leaks – inappropriate invoice entries, errors in invoicing, missing invoices, and non-compliant expenses. If identified and rectified all these minor discrepancies on a regular basis, it can save a business from huge losses and penalties.

In this context, IRIS GST is collaborating with PayInvoice to conduct a live webinar. Join us on the 7th of November at 3 pm where our GST experts will guide you on how you can leverage technology to increase your working capital and minimize losses.