Author: firmway

Automate TDS Reconciliation with Firmway: Benefits & Challenges

TDS Reconciliation Made Easy: The Benefits Of Automated Solutions

Why companies need to Automate TDS Reconciliation?

Customers deduct TDS on every sale of goods and services above a certain limit, requiring TDS reconciliation. Companies need to reconcile TDS periodically by extracting transaction data from Accounting Software as well as 26AS form from the government portal to ensure that the client has given proper credit and avoid penalties and audit risk. The TDS and TCS that are eligible for credit are reflected in the statement while reconciling with the ledgers.

The deductee pays the amount stated in the statement as advance tax, making it eligible for credit. Hence, matching the amount with the TDS/TCS in the receivable ledgers of the deductee is of utmost importance. If you are doing it manually, the process is very vast, but Firmway can help you automate TDS reconciliation in 60 seconds.

TDS Reconciliation

Unlocking Efficiency: The Role of Automated TDS Reconciliation

The majority of organizations today manually perform this crucial process. A survey revealed that Tax managers dedicate, on average, at least 8 hours a week to manual data tasks, with 25 percent reporting spending over 20 hours a week on such tasks.

In another survey of over 280 companies, respondents reported that they could eliminate a large part of inefficiencies by using automated tools, with 62 percent indicating this. Just like the other financial functions, TDS reconciliation is faced with a similar fate. Accurate reconciliation of TDS credit reduces the tax burden and ensures no loss of TDS credit. However, due to manual intervention, faces the following challenges:

Challenges spelled out 

  • The possibility of manual errors in inputting amounts while filing returns can result in a mismatch.
  • For a deductee with a large number of customers, matching amounts is a herculean task.
  • The frequent updates to 26 AS make it time-consuming to reconcile and track on Excel worksheets.
  • Adopting manual work involves different people and their different ways of working. This lacks standardization and discipline. Communication usually happens over email and is easy to falsify or spread misinformation.
  • Proactive tracking of discussions with the tax deductor or collector for corrections due to identified mismatches. Teams in finance need to manually communicate over endless emails and calls.
  • Version control of Excel sheets and other documentation can cause issues in many instances.
  • While working in a manual model, you might keep the reports in disparate places.
  • The booking of TDS in the books of the deductor and deductee can be for different periods. Time differences spill over from one quarter to another quarter in the form of 26AS, causing further discrepancies.

Automating this process will enhance accuracy for 26 AS and significantly reduce time spent processing low-value-adding activities. It also enables us to manage TDS and TCS credits as per Form 26AS and books of accounts and almost nullify leakages.

What are the benefits of automating the reconciliation process? 

Running a tax department equates to having a plethora of responsibilities, especially concerning compliance and regulations like TDS. However, using reconciliation automation tools helps expedite the reconciliation process and closure while also improving compliance, enhancing accuracy, and promoting transparency.

  • Firmway’s 26 AS Reconciliation Software is also one such piece of software that makes the reconciliation process seamless for the organization.
  • Maps the TAN number with the PAN number for reconciling
  • It can reconcile large volumes in 60 seconds.
  • With the flexibility, it offers in quarterly, half-yearly, and annual reconciliations, it highlights mismatches and classifies entries into different buckets for ease of operations.
  • Efficiently manages communication with parties and generates actionable reports as and when required

Automation of the reconciliation process is truly the need of the hour for any business. With manual processes, it’s difficult to scale in response to the reconciliation when there is an increase in transactions. However, automation of the process makes the entire process effortless.

Audit a dying profession

Unlock the Future of Fintech : Is Audit a Dying Profession?

Is Audit a dying profession?

The audit industry is at a crossroads: as market expectations are shifting, technology is empowering auditors and improving quality, the case for audit’s evolution is growing. In the Future of Fintech, more and more businesses are realizing the importance of the audit and assurance industry. In fact, many businesses that previously did not conduct audits now see the value in doing so.

People feel auditing is a dying industry, but it is not. As per research by Deloitte, the audit industry will grow rapidly in the coming 10 years. Times are challenging and auditing is evolving with the help of AI, which helps auditors to automate time-consuming manual activities and focus on higher-value activities. They are realizing the importance of returning to basic management principles in order to identify and correct problematic management practices; auditing plays an important role in this regard because only a genuine and effective audit can drive effective fraud detection and risk management procedures within a company.

Future of FintechHow AI is Revolutionizing the Audit Industry :-

AI helps auditors optimize their time by allowing them to perform better and smarter, allowing them to use their human judgment to assess a broader and deeper range of data and documents. The incorporation of modern technologies such as machine learning (ML), cloud computing, and artificial intelligence (AI) with audit software will drive market expansion. These products are used to improve organizations’ risk management skills.

As new standards enable Artificial Intelligence to create new chances for evidence generation, there is also an opportunity to rethink the skills that auditors can gain on the job. As data-driven methodologies grow more common in today’s audits, auditors may now claim to be learning key business skills as well as AI skills. The knowledge that auditors gain through these automation tools equips them to do their job better and deliver better quality reports and results to their clients.

Some people assume that when a part of a profession becomes automated, the human element of the same is devalued. I see the opposite happening with audit automation. As auditors are freed from the more tedious and manual aspects of auditing that are spreadsheet-driven and tick-and-tie tasks — there is more room for strategic insights and critical thinking. This only expands the significance of the work auditors carry out, the influence they have, and their relevance to the capital markets and the global economy.

About the Author :-

Prashant Gupta is a Chartered Accountant by qualification but an Entrepreneur by passion. He comes with 5 years of experience as a Statutory Auditor before starting his own company Firmway Services, with a vision to Automate Audit Confirmation & Reconciliation for Auditors & Corporates.

A tech enabled approach for auditors to safeguard themselves from increased surveillance risk

How Does Tech in Auditing Boost Security and Compliance?

The Tech in Auditing Amid Stricter Regulations and Growing Risks

The audit profession is under strict scrutiny. Both the public and regulators are watching closely. The National Financial Reporting Authority (NFRA) was created under the Companies Act, 2013, and it enforces strict rules for auditors. With the growing role of Tech in Auditing, auditors now have advanced tools to detect fraud more effectively. However, they still face serious penalties if they fail in their duties. These penalties can include bans of up to 10 years, and even Big4 firms are not safe from these risks.

Recent court cases show how expectations for auditors have changed:

  • ICAI v. Mukesh Gang: The Hyderabad High Court found auditors guilty of gross negligence because they had failed to follow audit standards.
  • Union of India v. M.N. Basu: The Calcutta High Court, however, took a different view and ruled that some mistakes were due to errors in interpretation, not negligence.

As a result, the idea that auditors are “watchdogs, not bloodhounds” now seems outdated. In the past, auditors often skipped key steps, such as obtaining independent confirmations. However, risks in the profession have increased greatly, while earnings have not grown to match these risks.

How Tech in Auditing Is Helping Navigate New Pressures in Auditing

To manage these challenges, auditors are now using new technologies. Navigating New Pressures: The Tech in Auditing highlights this important shift.

For example, many firms use tools like practice management software, data analytics, and audit confirmation platforms. These tools make audits faster and more accurate, and they also reduce costs.

Firmway is one such platform that automates the entire audit confirmation process. In cases like Satyam, fraud happened because auditors relied too much on client-provided data. They did not verify the information with independent third parties, such as banks.

Tech in Auditing

Firmway: A Game-Changer in Auditing

Firmway helps auditors automate the audit confirmation process, and it works in collaboration with ICAI to ensure compliance with SA 505 guidelines.

The platform makes confirmations easier and more reliable. For instance, in cases like Satyam, independent confirmations could have stopped fraud early, and Firmway provides an automated solution for this.

In addition, the platform saves time and reduces effort. It ensures financial data is clear and accurate, which lowers the risk of fraud and human errors. Furthermore, it makes audits faster and smoother.

In today’s challenging environment, tools like Firmway build trust among auditors and regulators because they make processes more transparent.

Conclusion

Navigating New Pressures: The Tech in Auditing shows that auditors must adapt to growing risks. Tools like Firmway give them the support they need, and these tools help auditors protect themselves while delivering better results for clients and stakeholders.

To learn more about Firmway’s Audit Confirmation tool, Click here.

Budget 2021 On Corporate Finance

Budget 2021 On Corporate Finance

Budget 2021 On Corporate Finance

Budget measures: Direct and Indirect Tax changes

  1. Relief granted on dividend income earned by shareholders:
    1. Advance tax liability will now be computed on dividends only after declaration or receipt whichever is earlier;
    2. TDS exemption on dividends paid by SPVs to REITs and InvITs;
  2. TDS related provisions have been made more stringent:
    1. TDS at 0.1% to levied on the purchase of goods above INR 5 mn a year, where the turnover of the buyer exceeds INR 100 mn
    2. The rate of TDS/ TCS shall be higher than 2x actual rate, or 5%, in case of non-filing of ITR for the last 2 years
  3. Late deposit of employee contribution to labor welfare funds would not be allowed as a deduction to the employer.
  4. Tax Audit applicability based on turnover limit has been increased from INR 50 mn to INR 100 mn, with 95% of receipts and payments being digital;
  5. GST minor compliance changes – Form 9 substituted with self-reconciliation and Form 9C being scrapped.

Has the Budget made managing Corporate Finance somewhat easier?

  1. Relief on dividend income is a welcome move since this helps CFOs to pay dividends more tax-efficiently, making future investments in their companies more lucrative;
  2. Additionally, dividend relief to REITs and InvITs shows the government’s commitment to continue providing support to the conglomerates operating in real estate and infrastructure space (eg. Logistics);
  3. However, the government seems to be more and more unforgiving to defaults in TDS/ TCs norms. Companies/ CFOs ought to take note and ensure compliances accordingly;
  4. With easing of tax audit norms (both income and GST), it has reduced the compliance burden for smaller and subsidiary companies of larger MNC groups, whose turnover is within the limits, helping the CFOs to focus on running financing operations of the group.

Conclusion

CFOs ought to take note of the changes in the Budget and plan their next financial year accordingly. The budget may come off as somewhat bittersweet, however, relief in dividend provisions, including for REITs and InvITs, is an indicator for the government’s push to bring more investment into India. TDS provision becoming more stringent comes as no surprise given the current risk of non-compliance (monetary penalties in addition to the risk of prosecution of managerial personnel of the defaulting companies).

Atmanirbhar Bharat Abhayan – Benefits for MSME

Atmanirbhar Bharat Abhiyan : Empower MSMEs for Growth

Benefits  For MSME Definition of MSME Changed Under Atmanirbhar Bharat Abhiyan

Existing MSME Classification

Criteria: Investment in Plant & Machinery or Equipment

ClassificationMicroSmallMedium
Mfg. EnterprisesInv. < Rs. 25 lacInv. < Rs. 5 cr.Inv. < Rs.10 cr.
Services EnterpriseInv. < Rs. 10 lacInv. < Rs. 2 cr.Inv. < Rs. 5 cr.

Revised MSME Classification

Composite Criteria : Investment And Annual Turnover

ClassificationMicroSmallMedium
Manufacturing & ServicesInv. < Rs. 1 cr.
and
Turnover < Rs.5 cr.		Inv. < Rs. 10 cr.
and
Turnover < Rs.50 cr.		Inv. < Rs. 20 cr.
And
Turnover < Rs.100 cr.

Now that we’ve covered the MSME classifications, let’s turn our attention to the major benefits provided under the Atmanirbhar Bharat Abhiyan

Major Benefits for MSME :-

  • Collateral Free automatic loan to MSME up to 20% of entire outstanding credit as on 29th February 2020. Borrowers up to Rs 25 crore outstanding & turnover up to Rs. 100 crore are eligible. Loans for 4 years with a moratorium of 1 year of principal repayment. No guarantees required. Scheme can be availed till 31st October 2020.
  • CGTMSE with the support of 4000 Cr from Govt, will give partial credit guarantee to bank to allow them to give debt to promoters of MSME, who then will infuse the fund as equity.
  • 50,000 crore equity infusion for expansion of MSME through Funds of Funds.
  • Government will facilitate provision of Rs 20,000 crore subordinate debts for Stressed MSME which are NPA or stressed.
  • Receivables from Govt and CPSEs to be released in 45 days.
  • Global tenders will be disallowed in Government procurement tender upto Rs 200cr.
  • E market linkage for MSME to be promoted.

Atmanirbhar Bharat Abhiyan Tax Changes :-

  • All TDS and TCS rates reduced by 25% for Non-Salaried Resident Payments. Reduction is applicable from 14th May 2020 to 31st March 2021.
  • All refunds to non-corporate business & profession to be issued immediately.
  • All Income tax returns due date extended to 30th November 2020.
  • Tax audit due date extended to 31st October 2020.
  • All assessment getting barred on 30th September 2020 extended to 31st December 2020
  • All assessment getting barred on 31st March 2021 extended to 30th September 2021
  • Vivid Se Vishwas Scheme extended to 31st December 2020 without any additional payments.

EPF Benefits :-

Establishment Under Pradhan Mantri Garib Kalyan Package (PMGKP):

  • EPF relief extended for the month of June, July & August and will be paid by Government.

Other Establishment covered by EPFO

  • Statutory PF contribution of both employer and employee will be reduced to 10% from 12% for next 3 months (except CPSEs & PSU’s employer’s contribution).

NBFCs :-

  • Government will launch a Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs. Under this scheme investment will be made in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. Securities will be fully guaranteed by Government.
  • Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs/HFCs/MFIs. First 20% of loss will be borne by Government. AA paper & below will be eligible for investment.
  • PFC/REC to infuse liquidity of Rs 90,000 cr to DISCOMs against receivables
  • Central Public Sector Generation Companies shall give rebate to Discoms which shall be passed on to the final consumers (industries).

RERA :-

  • Treat COVID-19 as an event of ‘Force Majeure’under  RERA.
  • Extend the registration and completion date suo-moto by 6 months.
  • Regulatory Authorities may extend this for another period of upto 3 months, if needed.
  • Issue fresh ‘Project Registration Certificates’ automatically with revised timelines.
  • Extend timelines for various statuary compliances under RERA.

Contractors :-

  • PSU contracts to be extended for upto 6 months so that contract may be completed including for PPP contracts.

How to Draft a Clear Balance Confirmation Letter for Debtors

Balance Confirmation Letter

A Balance Confirmation Letter is a crucial document used in financial audits to verify outstanding balances between companies and their debtors. It helps maintain accurate financial records, ensuring transparency and compliance with auditing standards. There are two main formats: Positive Confirmation, where the debtor must confirm the balance, and Negative Confirmation, where the debtor only responds if there is a discrepancy. In this guide, we will walk you through the process of drafting an effective Balance Confirmation Letter, covering both formats to help businesses streamline their audit process and maintain compliance with financial regulations.

Illustrative of Balance Confirmation Letter to be sent to Debtors – Positive Form

[Letterhead of Entity]

[Date]

[Name and address of debtor]

Dear Sir,

For audit purposes, kindly confirm directly to our auditors (name and address of  the auditors) that  the balance of  Rs xx due by you as on ________ , as shown by our books, is correct. The details of the balance are as under: Note: In case the list of invoices forming the balance is too large, these details may not be given

Invoice NoDateOrder Reference / Acceptance / Tender No. etc.Amount
Total
Less : Advanced Received
Net Amount due by you		xxxx
(xxx)
xxxx

A stamped envelope addressed to our auditors is enclosed for your convenience.

If the amount shown is in agreement with your books, kindly strike out the paragraph marked (B) below. Otherwise, please furnish the details in the proforma given in the paragraph marked (B) below and strike out paragraph (A).

In either case, kindly sign at the place provided below and return this entire letter directly to our auditors in the enclosed envelope.

Your prompt compliance with this request will be appreciated. Kindly return this form in its entirety.

Yours Faithfully,

(Signature of responsible official of the entity)

(Name and Address of entity)

(A) We confirm that the above stated amount is correct as at ______

OR

(B) We state that the above-stated amount is not correct as per our records. The details of the balance as at _________ as per our records are as below:

Invoice NumberDateOrder ReferenceAmount
xxxxxxxxxxxxxxxTotalxxxxxx
xxxxxxxxxxxxxxxLess : Advanced paid(xxxxx)
xxxxxxxxxxxxxxxNet Amount due from us(Rs)xxxxxx

Yours faithfully,

(Signature of debtor/responsible official)

Balance Confirmation LetterIllustrative Balance Confirmation Letter to be Sent to Debtors Negative Form

[Letterhead of Entity]

[Date]

[Name and address of debtor]

Dear Sir,

For audit purposes, kindly write directly to our auditors (name and address of the auditors) if the balance of Rs. due by you as on _______ as shown by our books, is not correct, giving details of the differences. The details of the balance are as under:

Note: In case the list of invoices forming the balance is too large, these details may not be given

Invoice NoDateOrder Reference /Acceptance/ Tender No. etcAmount
Total
Less : Advanced Received
Net Amount due by you		xxxx
(xxx)
xxxx

If you do not notify our auditors of any difference within ten days of the date of this letter, it will be presumed that the balance stated above is correct.

A stamped envelope addressed to our auditors is enclosed for your convenience.

Yours faithfully,

(Signature of responsible official of the entity)

Source: Guidance Note on Audit of Debtors, Loans and Advances published in June, 1994 issue of ‘The Chartered Accountant’.

Use Firmway.in  for obtaining Balance Confirmation in compliance with the Guidance Note.

MSME Form 1

MSME Form 1 – Complete guide that you need to know

MSME Form 1 – All that you need to know

What is the fuss around MSME Form 1?

MCA came with an order dated 22nd Jan 2019 that: Every Company which has received goods or services from Micro & Small Enterprise and Payment is due/ not paid to such enterprise for 46 days from date of acceptance shall file in MSME Form 1

Note:

  • Only Micro and Small Enterprise Suppliers are considered. Moreover, Medium Enterprise suppliers are not considered as per the notification.
  • Furthermore, the 45 days calculation starts from the date of acceptance/deemed acceptance and not from the date the balance becomes due

Who is MSME?

MSME is classified into two categories:

  1. Manufacturing enterprise
  2. Service enterprise

They are defined in term of investment in Plant and Machinery/ Equipment  as below

MICROSMALLMEDIUM
Manufacturing Enterprises< Rs 25 Lacs< Rs 5 Crs< Rs 10 Crs
Service Enterprises< Rs. 10 Lacs< Rs 2 Crs< Rs 5 Crs

Note: Only registered enterprises having valid MSME certificate shall be considered. In addition, Udyog Aadhar is also considered as MSME registration.

What is MSME Form 1?

A Half yearly return to the Ministry of Corporate Affairs stating the following:

  • Name of Supplier
  • PAN of Supplier
  • Amount Due
  • Date from which such amount is due
  • Reasons for Delay (Generic) (eg – Credit period>45 days, Goods in Transit, Material rejected/returned, etc)

Note:

  • Here the details like amount and date are with respect to the due date and not the date of acceptance.
  • For example, an MSME vendor delivered you goods on 1/12/18. The credit period is 60 days. Hence you have to report this vendor in MSME form 1 since it is more than 45 days as on 22/1/19. However, the amount due would be Nil and date from which such amount is due – 30/01/2019.

What is the due date?

Filing PeriodDue date of Filing
Initial Return (Payable for more than 45 days as on 22nd Jan 2019)30th May 2019
From April to September31st October
From October to March30th April

Note:

Only the first return is an “as on 22nd Jan 2019” return. For regular returns post that, you have to report all the MSME vendors to whom the payment was not made within 45 days from the date of acceptance in the said period.

MSME Form 1How do we do it?

Step 1: First, go through your list of vendors to whom Payment is due/ not paid for 46 days from date of acceptance

Step 2: Next, identify the list of vendors you think can be MSME

Step 3: Then, send them MSME confirmation asking whether they are MSME as on the said date. And if yes, ask them to attach their registration certificate as on the said date

Step 4: Once you receive the certificate, furnish their details in Form MSME -1

Is it Mandatory to file MSME Form 1?

– Yes

Is there any Penalty?

– Yes

  • On Nonfilling or
  • On Knowingly furnishes incorrect/ Incomplete Information.
ParticularsPenalty
On defaulting companyExtended Up to  Rs. 25,000/-
Every Officer who is in default

(Directors, CFO and CS)

Minimum Fine Rs. 25,000/- which may extend to Rs. 3,00,000/-

Or

Imprisonment which may extend to 6 Months

Or

Both

What if I missed the due date?

– Don’t Worry! MCA is currently allowing (as on 6/6/2019) filling of MSME Form 1 – Without Penalty.

What if I missed filling some vendors in the return?

– Don’t worry! You can file another return for the same period with the vendors you missed in your earlier return

Is there any software which can easily get MSME Confirmation from all Vendors?

The Firmway tool can allow the companies to manage their entire MSME confirmations for one time and recurring return. Just upload a simple excel file with Vendor Name, Email Id and mobile number. The software will automatically trigger email and SMS to every vendor, do a rigorous follow-up and provide a real-time dashboard.

Know more about it – firmway.in

Links:

Disclaimer:

All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. The author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write-up.

Audit Confirmation

Audit Confirmation Pitfalls & How Firmway Offers A Better Way

Audit Confirmation Software

In the realm of financial audits, undoubtedly, audit confirmation plays a crucial role by verifying the accuracy of financial statements and thereby ensuring the credibility of an organization’s financial position. In addition, they act as a fundamental tool for auditors to confirm the existence, ownership, and accuracy of various financial balances and transactions. However, the traditional manual processes used to obtain these confirmations often come with significant challenges that can impact the reliability and efficiency of the audit.

The Importance of Audit Confirmations

Audit confirmations are vital for maintaining the integrity and accuracy of financial reports. They provide external evidence that supports the reported balances and transactions; therefore, they help auditors verify that the financial statements accurately reflect a true and fair view of the organization’s financial position. Moreover, this evidence enhances the overall reliability of the financial reporting. Confirmations are particularly important in detecting and preventing fraud; moreover, they offer an additional layer of validation. This extra layer can, in turn, uncover discrepancies or fraudulent activities.

Despite their importance, the process of obtaining confirmations through manual methods can be fraught with difficulties. Furthermore, the flaws inherent in these manual processes necessitate a more effective and efficient solution. Consequently, this is precisely where Firmway’s audit confirmation software comes into play.

Audit Confirmation

Common Pitfalls of Manual Audit Confirmation

  1. Human Error: Manual audit confirmation processes are highly susceptible to human error. Errors can occur during data entry, sending out confirmation requests, or interpreting responses. These mistakes can lead to inaccurate confirmations, which may compromise the audit’s overall reliability and the accuracy of financial statements.
  2. Time-consuming and Inefficient:  The manual process of obtaining audit confirmations is often slow and labor-intensive. It involves preparing confirmation requests, sending them out, tracking responses, and following up with non-respondents. This lengthy process can delay financial reporting and affect the timely completion of audits.
  3. Verification Difficulties: Verifying the identity of the confirmer is a critical aspect of the confirmation process. Manual methods often lack robust verification mechanisms, making it challenging to ensure that responses come from legitimate and authorized sources. This can increase the risk of fraud or misrepresentation.
  4. Inconsistent Follow-Ups: Follow-ups are essential to obtaining confirmations, but manual follow-up processes can be inconsistent and unreliable. This can result in incomplete confirmations and gaps in audit evidence, making it difficult for auditors to draw accurate conclusions.
  5. Data Security Concerns:  Manual handling of sensitive financial information poses significant security risks. Physical documents are vulnerable to loss, theft, or damage, while electronic communications may be susceptible to unauthorized access. These risks are heightened in a manual setup, where security measures may be inadequate.

How Firmway’s Audit Confirmation Software Addresses These Pitfalls

Firmway’s audit confirmation software offers a comprehensive solution that addresses the challenges associated with manual methods. By automating and streamlining the confirmation process, Firmway enhances accuracy, efficiency, and security.

1. Enhanced Accuracy and Reduced Errors

Firmway’s software minimizes human error by automating data entry and processing. Moreover, the platform ensures that all confirmation requests are accurately prepared and sent. Additionally, responses are systematically recorded and analyzed. Consequently, this automation reduces the likelihood of mistakes and ensures that confirmations are reliable and accurate.

The software also includes built-in error-checking mechanisms that flag inconsistencies or potential issues. Consequently, auditors can address them promptly. Moreover, this level of accuracy is crucial for maintaining the credibility of financial reports and ensuring that audit conclusions are based on reliable evidence

2. Accelerated Confirmation Process

The traditional manual process of obtaining confirmations is often slow and cumbersome. However, Firmway’s automated platform significantly speeds up this process by streamlining workflows. Furthermore, it reduces the time required to obtain confirmations, thus enhancing overall efficiency.

Automated features include the ability to send bulk confirmation requests, track responses in real-time, and manage follow-ups efficiently. Consequently, this acceleration not only helps meet tight financial reporting deadlines but also enhances the overall efficiency of the audit process. Furthermore, by streamlining these tasks, your team can focus on more strategic aspects, ultimately improving overall productivity.

3. Robust Verification Mechanisms

Firmway’s software includes advanced verification features that ensure the legitimacy of the confirmer. The platform uses sophisticated algorithms and authentication methods to verify the identity of the responder, providing confidence that confirmations are received from authorized and legitimate sources.

This robust verification process helps reduce the risk of fraud and ensures that the confirmations obtained are valid and reliable. Additionally, it enhances the overall security of the confirmation process, thereby protecting sensitive financial information from unauthorized access. Furthermore, this approach reinforces the trustworthiness and integrity of the entire system.

4. Automated and Consistent Follow-Ups

Follow-up is a critical component of the audit confirmation process, particularly for obtaining responses from non-respondents. Firmway’s software automates follow-up communications, ensuring that all outstanding confirmations are pursued systematically and consistently.

The platform can schedule and send automated follow-up requests at predefined intervals, significantly improving response rates and reducing the likelihood of incomplete confirmations. This automation ensures that auditors receive the necessary evidence to support their conclusions and complete the audit effectively.

5. Enhanced Data Security

Data security is a top priority for Firmway’s audit confirmation software. The platform employs advanced security measures, including encryption and secure communication protocols, to protect sensitive financial information throughout the confirmation process.

By leveraging these security features, Firmway ensures that all data remains confidential and protected from unauthorized access. This enhanced security reduces the risk of data breaches and ensures that audit confirmations are handled with the highest level of security.

Types of Confirmations Supported by Firmway

Firmway’s software supports a wide range of audit confirmations, making it a versatile tool for auditors across various industries. The types of confirmations include:

  • Debtor Confirmations: Verifies amounts owed by customers, ensuring that receivables are accurately reported in the financial statements.
  • Creditor Confirmations: Confirms outstanding liabilities, providing assurance that payables are correctly stated.
  • Loan Confirmations: Validates the existence and terms of loans, ensuring that both assets and liabilities are properly recorded.
  • Stock Confirmations: Confirms stock levels and values, helping to verify inventory balances.
  • Bank Balance Confirmations: Verifies cash and bank balances, ensuring that financial statements reflect accurate cash positions.

Why Choose Firmway’s Audit Confirmation?

Firmway’s audit confirmation software offers a modern solution to the challenges of manual confirmation processes. By automating and enhancing the confirmation process, Firmway provides a more reliable, efficient, and secure alternative that meets the needs of today’s auditors and organizations.

Choosing Firmway means embracing a smarter approach to audit confirmations—one that reduces risks, improves efficiency, and enhances the credibility of financial reports. With Firmway, auditors can confidently conduct their work, knowing that they have a powerful tool to support their efforts.

To experience the benefits of Firmway’s audit confirmation software, register here: https://app.firmway.in/register

Firmway helps to enhance the credibility of financials, detect and prevent frauds to uphold the interests of the various stakeholders.

Confirmations being an important source of authentication for the various stakeholders, the various flaws associated with the manual process had to be mitigated. To ensure a flawless and effortless process of obtaining confirmations, an effective and proficient platform was obligatory—this led to the birth of FIRMWAY. The unique verification process makes it the best way of obtaining confirmations.

Types of confirmations taken:

  • Debtor
  • Creditor
  • Loan
  • Stock
  • Bank Balance

Firmway sends the Confirmation, Verifies the Confirmer, carries out regular follow-ups with the Confirmer and Summarizes Responses.

To Register please click here: https://app.firmway.in/register

Balance Confirmations

Balance Confirmations Simplified: A New Approach For Finance Departments

Balance Confirmations: A Never-Ending Nightmare for the Finance department

Financial year closure ensures that the accounts team is occupied with winding up their chef d’oeuvre, “Financials.” However, the idea itself of obtaining manual #confirmations from debtors, creditors, and banks proves to be one of the culprits for undesirable hitches. The reason is that Firmway has, therefore, come up with a process that, consequently, has made the Balance Confirmations process easy.

Challenges Faced During Financial Year Closure

The finance team often finds confirmation tasks daunting, involving hundreds of confirmations, thousands of follow-ups, and countless minutes spent on calls. Although the ever-increasing #audit pressure is capable of driving an individual insane,.

Balance ConfirmationsThe Daunting Task of Manual Balance Confirmations

If the individual survives the above-stated stages along with unrealistic excuses like person not being in place, attending meeting, on leave, having system issues, having a tight schedule, etc., he is then exposed to the challenges of pursuing and closing the unreconciled differences by re-contacting those parties, asking ledgers, tallying line items, finding differences, communicating it, discussing it, negotiating them, and finally closing it.

The Pressure of Audit and Its Impact

The story doesn’t conclude at closure unless one has completed that one thing the whole world approves of: #‘Documentation’.

In spite of hundreds of days of hard work, the manual process leaves rooms for errors, fraud, etc.

And by the time the whole cycle is about to complete, confirmations for the next quarter already in awaiting actions.

Introducing Firmway: Your Solution to Balance Confirmations  Challenges

Are you facing similar problems?

Not to worry anymore, a young team of chartered accountants, in support of senior professionals of the fraternity, has come up with unique software to streamline the entire process: “FIRMWAY”— Balance Confirmations were easy.

How Firmway Simplifies the Balance Confirmation Process

Firmway seamlessly integrates with your accounting software, handling confirmations, timely follow-ups, balance reconciliation assistance, and providing real-time dashboard monitoring.

Technology enhances confirmation legality with verified parties, authorized responses, and IP tracking, at an affordable cost.

Prashant Gupta

Co-founder | CEO

FIRMWAY

Visit www.firmway.in or email at [email protected] for a quick web demo or a physical demo.

GSTR-3B

GSTR-3B Return Filing: Expert Tips And Guidelines You Need To Know

GSTR-3B: Insights

The government has published the GSTR-3B format for filing #GST returns for the months July’17 and Aug’17.

Furthermore, to ensure a smooth rollout of GST and address industry concerns about return filing, authorities decided that businesses would pay taxes based on a simplified return (Form GSTR-3B) during the first two months of GST implementation. Additionally, this form includes a summary of both outward and inward supplies, which businesses must submit before the 20th of the following month.

Moreover, the GSTR-3B form simplifies the filing process. Registered persons must submit consolidated details in a simplified manner as notified.

Introduction to GSTR-3B

The monthly GST return form effectively simplifies the GST return filing process by consolidating taxable values and tax amounts for outward and inward supplies, input tax credit, and other essential GST transactions. Furthermore, it provides a comprehensive overview of financial transactions within a specified period, ensuring accuracy and compliance with GST regulations. Additionally, this streamlined approach facilitates easier reconciliation and auditing, thereby enhancing overall transparency and accountability in tax reporting

Importance of Timely Filing

Timely filing of GST returns is crucial to avoid penalties and interest charges. Moreover, compliance with filing deadlines ensures financial discipline and prevents additional costs. Furthermore, adhering to these timelines helps maintain smooth business operations and enhances regulatory compliance.

Details to be furnished in Form GSTR-3B is as follows:

1. Outward and Inward Supplies

The tax filing form mandates that taxpayers report consolidated taxable values and tax amounts for both outward and inward supplies, including supplies liable under the Reverse Charge Mechanism (RCM). Additionally, it underscores the necessity of accurate reporting to maintain compliance with tax regulations. Furthermore, this reporting requirement ensures transparency in financial transactions and aids in preventing tax evasion.

2. Inter-State Supplies

Details of inter-state supplies made to unregistered persons, composition taxable persons, and those holding Unique Identification Numbers (UIN) must be reported in the GST return filing form applicable to such transactions.

3. Input Tax Credit

Eligible input tax credit can be claimed based on the transactions reported in GSTR-3B, subject to compliance with GST rules and conditions.

4. Exempt, Nil-rated, and Non-GST Inward Supplies

Accurate reporting of exempt, nil-rated, and non-GST inward supplies in GSTR-3B ensures compliance with GST regulations.

5. Payment of Tax and GST TDS/TCS Credit

The GST return form also requires taxpayers to provide details regarding the payment of tax and GST TDS/TCS credits, ensuring comprehensive reporting of financial transactions under GST.

GST returns will have to be filed for the months of July and August 2017 as per the timeline given below:

GSTR-3B

Firmway’s Role in Assisting with GSTR-3B

Firmway assists businesses in aligning with vendors and customers, thereby ensuring timely filing of their first GST return within a week. As a result, this prevents unintentional interest costs, helping businesses maintain financial efficiency and compliance

Conclusion

The simplified GST compliance process for businesses not only facilitates but also streamlines the return filing process. Moreover, timely and accurate filing is essential to avoid penalties and maintain compliance with GST regulations.

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