Offline Accounting Software is an Oxymoron

CA Manishkumar Bhansali August 17, 2023

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At Growth Partners, a lot of clients ask us if we can suggest them some offline accounting software for their business.

Starting August 1st, all businesses with turnover above 5 Crores are mandatorily required to generate E-invoices.

Earlier, an invoice made on the 1st of any month enjoyed 41 days time to undergo any changes.

An E-invoice enjoys no time for changes. It’s REAL TIME.

There are also some rumours which say that the Government is planning to roll out E-invoicing for business with turnover above 1.5 Crores starting from 1st January, 2024; however it is not official yet.

A traditional Balance Sheet & Profit & Loss Statement has only 4 main components : Sales, Receipt, Purchase & Payment.

Debrief ⬇️

Sales :

With E-invoicing coming in, it’s almost like our sales ledger is maintained by the GST Department. Except B2C Sales, everything is reported by Government Real Time.

Offline Sales Register is a myth 😀

Receipt :

With Online Payment Gateways like GPay, Phone Pe, UPI Coming in, almost every transaction is today cashless.

An online receipt flows through bank which is already linked with Aadhaar & PAN which is further linked to GST

Offline Receipt is dead 😀

Purchase :

If the buyer is in the ambit of E-invoicing, he definitely sources the goods / services from someone who’s in the E-invoicing ambit.

Except for a few unregistered purchases, government knows what you have purchased before your store managers.

Offline Purchase is gone 😀

Payment :

With Cash Discounts, Scheme Variables, Advance Cheques, Bags & increasing cash handling charges, gone are the days when payment used to happen in cash

Even if the supplier visits a customer’s shop for collection, the customer happens to make an online transfer. 😀

Offline Payment is a lie 😀

Technically, nothing is offline.

जो समझ गया, वो जीत गया 😀

#growthpartners #automation #online

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Only 5 MFs allow NRIs residing in US and Canada to execute online transaction without any limits

NRIs based out of US and Canada can invest in Indian mutual funds. However, AMCs do not have a uniform policy to deal with US and Canadian clients.

Currently, close to 14 fund houses receive investment from investors based out of these two countries and another five AMCs receive investment only from US.

Broadly, there are two categories of fund houses here – where investors are not required to physically present in India and vice versa.

Here is the list of fund houses where investors are not required to be physically present in India:

Aditya Birla Sun Life Mutual Fund
Nippon India Mutual Fund
Quant Mutual Fund
Sundaram Mutual
UTI Mutual Fund

Interestingly, these fund houses allow such NRIs to invest in their MF schemes without any restriction that too through online transaction.

Let us look at the fund houses which insist NRIs to be physically present in India:

360 One Mutual Fund
Axis Mutual Fund
DSP Mutual Fund (Only lumpsum)
ITI Mutual Fund (Only lumpsum)
Kotak Mutual Fund
Navi Mutual Fund
PPFAS Mutual Fund
SBI Mutual Fund
Taurus Mutual Fund
White Oak Capital Mutual Fund

Similarly, here is the list of fund houses, which receive money only from US investors:

Bandhan Mutual Fund (Only US)
Edelweiss Mutual Fund (Only US)
HDFC Mutual Fund (Only US)
ICICI Mutual Fund (Only US)
Motilal Oswal Mutual Fund (Only US)

Please note that all these fund houses receive investment only through physical mode. Also, these fund houses insist NRIs to submit application form along with a declaration form indicating their residential status.

NRIs residing in US and Canada will have to share Foreign Account Tax Compliance Act (FATCA) details and tax identification number (TIN) along with KYC details.

FATCA declaration form captures information like type of address (residence, business, registered office etc.), country of tax residence, tax identification number, Global Intermediary Identification Number (GIIN) and seek investors consent for sharing the information with relevant tax authorities.

For transaction, an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account is a must.

Source: Cafemutual