Common Problems in Service Industry with Accounting

Issues faced by Service Sector Organisations in accounting are:

• Proper collection of Service Tax with proper billing via Bills/Debit Notes for Services that are:
  • Taxable
  • Export
  • Exempt
  • Non-Taxable
• Proper payment of service tax :
  • on payments received against bills
  • advance received
  • opening balance
• Short receipt from customers and implication on Service Tax payable
  • Deduction of TDS from bills and its impact on Service Tax payable
  • Deduction from customer on account of deficient service / absence, breakage etc and its impact on tax payable and gross income reported
• Billing
  • Faster billing process (use customer preference)
  • Flexible billing methods with option to edit captions in billing
• Billing / Receipt on ‘Tax Inclusive’ basis and its proper accounting
• Customer Outstanding review and remarks
• TDS Management a. Tracking of TDS deducted b. Report on TDS made by customers c. TDS Certificate Received Report d. Reminder for non-receipt of TDS certificates
• Registers – Bill Register, Receipt Register, TDS Register, Consolidated Bills and Receipt Register.
• Comprehensive software security
• Employee Turnover requiring frequent re-training.