Ready to add your business logo to your thermal bills? Well, myBillBook has come up with this exciting feature, which allows you to print your company logo on thermal bills, in a few easy steps. Let’s get things rolling!

Prerequisites to Add Logo to Thermal Bills

Before adding your business logo to thermal bills in myBillbook, you must follow some steps to adjust it. Your logo will not print correctly if it isn’t in the correct size and format.

 Step 1: Resize the Logo 

In this step, you need to resize your logo to fit on the thermal bill.

• Before starting this step, download and save your logo on your PC.
• To resize and convert the logo, we recommend using Pixlr.com
• Go to Pixlr.com
• Scroll down to find ‘Pixlr Editor’ and click on it
• Click on the ‘+Open Image’ option
• Choose your logo file from your computer.
• Once the logo gets displayed in the editor, go to ‘Image > Smart Resize.’
• In the resize options, set the Width to 210 pixels and the Height to 70 pixels.
• Click ‘Apply’ to resize your logo.

Step 2: Convert the Logo to Monochrome (Black & White) Image

• Now you need to convert the resized logo into a black & white image.
• From the top menu, choose ‘Adjustment > Auto B&W.’
• This will automatically change your logo to black and white (Monochrome).
• Click on ‘File’ at the top left of the screen.
• From the dropdown, choose ‘Save’ and select ‘PNG’ format
• Click ‘Save As’ to save the new logo to your computer.

Step 3: Convert the File Format to BMP Format

• You can choose any online BMP converter, and we recommend the below link
• Go to https://online-converting.com/image/convert2bmp
• Choose the ‘Colour > 1 (Mono)’ option
• Click on ‘Add Image Files’
• Choose the resized logo that was saved in PNG format
• The conversion will start automatically.
• Under the status, you can click on the ‘Download File Name’ option to download and save the file. 

Step 4: Upload Monochrome Logo to myBillBook Web App

• Login to myBillBook web application
• From the left side menu, click on ‘Settings’
• Select ‘Thermal Print’ from the left menu
• Click on ‘Upload Monochrome Logo’ option
• Choose the file which you saved above in step 3 to upload it. 

Once uploaded, you will get a preview of your logo on the thermal bill. 

This is a one-time process, and you do not have to upload your logo every time you need thermal bills. However, if you manage different businesses using the same subscription, you must upload the logo of that specific company under it.

The post How to Print Your Company Logo on Thermal Bills appeared first on MyBillBook.

Types of Invoices

Now that you understand the definition of an invoice and how it is different from a bill, let’s examine the different types of invoices.

1. Sales Invoice
2. Proforma Invoice
3. Credit Notes
4. Debit Notes
5. Commercial Invoice
6. Purchase Order Invoice
7. Recurring Invoice
8. Timesheet Invoice

Sales Invoice

Sales Invoice is a legally binding document that records a transaction between seller and buyer and requests payment for the goods sold or services rendered. 

Proforma Invoice

A proforma invoice is a preliminary invoice that is issued before generating an actual invoice. A proforma invoice is not a legal document. 

Credit Notes

A credit note is issued by the seller when there is return of products by the buyer. 

Debit Notes

A debit note is issued by a buyer requesting return of funds in case of a purchase return.

Commercial Invoice

Used in international trade, a commercial invoice is a legal document that records the export transaction between a buyer and a seller.

Purchase Order Invoice

A purchase order is a document created by the buyer outlining their requirements and expectations about the product and the quantity they are planning to purchase. 

Recurring Invoice

Recurring invoice is a regular sales invoice that is sent to buyers or customers on a recurring schedule. The details of the transaction like the products, quantity, customer details remain same.

Timesheet Invoice

Used in the service industry, a timesheet invoice helps companies to charge clients for a particular task or a project on an hourly basis.

Types of Invoices Under GST

Under Goods & Services Tax, there is a new set of invoices, including some from the regular invoices. The types of invoices under GST include – 

1. Tax Invoice or GST Invoice
2. Bill of Supply
3. Delivery Challan
4. Credit Note
5. Debit Note
6. e-Invoice
7. e-Way Bill
8. Receipt Voucher
9. Refund Voucher
10. Payment Voucher
11. Supplementary Invoice

GST Invoice or Tax Invoice

As per Section 31 of the CGST Act, a registered seller supplying taxable goods must generate a tax invoice. A tax invoice is a detailed record of a transaction between a seller and a buyer. Besides the regular invoice details, a tax invoice must include the respective tax rates like GST, CGST, IGST, etc.

A tax invoice for the sale of goods must be generated before or at the time of delivery. However, for supplying services, GST invoices can be issued before, at, or even after the time of supply. 

Bill of Supply

A registered seller supplying exempted goods or services or both or paying tax under a composition scheme should issue a bill of supply instead of a tax invoice.

Delivery Challan

A delivery challan is issued when goods are transported from one place to another but not necessarily because of a sale.

Receipt Voucher

A registered seller issues a receipt voucher upon receiving an advance payment for any supply of goods or services.

Refund Voucher

A refund voucher is generated when a seller fails to supply the goods after generating a receipt voucher. Which means after receiving an advance payment. In such cases the seller issues a refund voucher against the received advance. 

Payment Voucher

A registered seller paying taxes under reverse charge shall issue a payment voucher while making a payment to a supplier.

Supplementary Invoice

A supplementary invoice can be used to revise an invoice due to an upward change in the product or service price. It must be issued within 30 days of the price revision by the goods or services provider. 

e-Invoice

e-Invoice is a digitally signed and verified document used for B2B transactions. It contains all the details, like that of a sales invoice, but is validated by the government tax portal. 

e-Way Bill

According to Rule 138 of CGST Rules, an e-way bill is mandatory for the movement of goods valued above a specified limit within India. The movement of goods could be for supply or reasons other than supply.

Elements of a Standard Invoice

A standard invoice must contain the following elements – 

1. ‘Invoice’ in the title
2. Invoice number
3. Invoice Date 
4. Details of the seller
5. Buyer details
6. Product/Transaction details
7. Cost per unit of product
8. Quantity
9. Price
10. Tax rate
11. Total amount to be paid
12. Terms and conditions
13. Due Date
14. Payment Terms

GST Invoice Format

A tax invoice or a GST invoice must be issued by a registered person with the following details – 

1. Name and Address of the Supplier
2. Goods and Services Tax Identification Number (GSTIN) of the supplier;
3. A unique invoice number
4. Date of issue
5. Name of address of the recipient or the buyer, GSTIN (if registered)
6. Delivery Address
7. HSN Code
8. Detailed description of goods or services
9. Quantity or Unit
10. Total value 
11. Taxable Value
12. Rate of Tax (CGST, SGST, IGST, Union Territory or Cess)
13. Amount of tax 
14. Place of supply 
15. Whether the tax is payable on a reverse charge basis
16. Signature of the supplier 
17. Quick Response code with Invoice Reference Number (IRN) (in case of e-invoice)

Invoice Sharing With Clients – Different Methods in Use

Invoice sharing is part of invoice management. Choosing the right method/s to share invoices is crucial to ensure timely delivery and prompt payments. An effective invoice-sharing method not only improves the cash flow of a business but also helps in maintaining positive client relationships. Let’s now explore different ways to share invoices.

Physical Invoices

Physical invoices or hard copies of invoices are issued to clients who prefer to have physical documentation. This method prints invoices, and the hard copies are handed over to the clients. The handing over can be done directly, through post, or by courier. 

e-Mailing Invoices

Electronically mailing an invoice is a commonly used method as it offers a secure platform to share invoice information. Once the invoice is created, it can be sent to the client’s e-mail address as an attachment. While sharing invoices through emails, attaching them in PDF format is recommended. 

Using Secure File Sharing Services

You can also use file-sharing services like Dropbox, Google Drive, or OneDrive to share invoices securely. This method is more helpful when sharing larger files and to share multiple invoices simultaneously. Once the invoice is generated, you can upload it to any of the file-sharing apps, and get a shareable link with appropriate permissions (view or edit) and expiry dates. You can share this link with your customer or choose an option to send an email notification. 

Through WhatsApp

One of the easiest ways to share invoices is through Whatsapp. It hardly takes any effort to share an invoice using this popular messaging channel. Once the invoice is generated, share it as an attachment to your client’s Whatsapp number directly. You can attach any kind of format, like Docs, Sheets, PDFs, etc., in WhatsApp.

Common Challenges with Manual Invoicing

Manual invoicing, or the process of using pen, paper and other manual methods to conduct billing, is quite familiar to most businesses. The method might seem convenient, especially at the beginning of the enterprise. However, except for billing, the other invoice management practices, as mentioned above, are hard to practice using manual billing. It also poses significant challenges, like the ones mentioned below, making it difficult to conduct billing. Let’s look at some of the common billing mistakes. 

Errors in Invoices

Data entry errors and calculation mistakes are the most common errors in manual billing. Incorrect billing and wrong customer information often lead to disputes and payment delays.

Missing Invoices

In manual billing, there is no proper tracking system. Hence, the chances of misplacing and losing invoices are high. Missing invoices again leads to delayed payments and other tax-related complications. 

Delayed Payments

Manually tracking the invoices and following up with the clients is inconsistent and time-consuming. This leads to delayed payments that could affect the cash flow. 

Managing Bulk Invoicing

While managing single invoices is difficult, bulk invoicing is time-consuming and labour-intensive and can lead to delays. Further, the larger the number of invoices, the higher the chances of errors. 

Ensuring Data Accuracy

Besides billing, manually keeping product/service details and customer information up to date is prone to errors and can result in inaccurate invoices. Further, the same data needs to be entered multiple times across different platforms, which increases the likelihood of errors. 

Adapting to Regulatory Changes

Staying up to date with frequent changes in tax laws and regulations, such as GST updates, is a significant challenge. Manual systems require regular updates to ensure compliance, which can be labour-intensive and prone to mistakes.

Using Automation to Avoid Billing Errors & Streamline Your Billing Process

If you are still using manual billing or any other method that is inconsistent with the current regulatory requirements and the market standards, it’s high time you consider upgrading your billing system. 

One of the best billing solutions that could resolve most of the billing challenges, especially those with manual billing, is to use an automated system like billing or invoicing software. 

An efficient billing system significantly reduces billing errors, making billing faster and more accurate. It also helps you streamline your billing operations by providing prompt invoice delivery options, enabling efficient payment methods, invoice tracking, auto-reminders, dispute resolutions, report generation, etc. 

The post What is Invoicing – Everything You Need to Know for Accurate Billing appeared first on MyBillBook.

Proforma Invoice Sample

There are no standard industry guidelines for the format of a proforma invoice, and it might look like a sales invoice. Nevertheless, businesses must have a standard proforma invoice format to make it uniform in all business transactions. Here is a sample format or template for your reference.

The post Proforma Invoice appeared first on MyBillBook.

One can connect the thermal printer with a computer using a USB cable or through wireless mediums to print invoices. The quality of the paper for this printer depends on the amount of information that has to be printed. Usually, there is an option to change the paper quality of these printers.

Read this blog to know about the thermal printer bill template, its advantages and the must-haves of a thermal printer bill.

Advantages of a thermal printer invoice

Bundling

The print groupings option can be used to make an entire inventory list. It enables the user to print all the different items together on a sheet rather than record it manually. For example, a set of tyres, brakes, and other spare parts can be printed as bundled items rather than individual items. This feature helps businesses save time & reduce errors.

E-storage of invoices

Instead of generating different invoices for multiple products, business owners can get relief from the bureaucracy of manual journaling with thermal printing. Using this printer, one can generate an e-journal of invoices similar to the paper journal, except in a “cleaner” format. With the elimination of entirely manual journaling, business owners can easily keep a record of invoices and maintain their sales ledger.

Faster transactions

In a world full of options for customers, Business owners should aim to decrease transaction time and wait times for their customers. They can do it by using thermal printers in their self-checkout counter setup. These printers help businesses speed up transactions and decrease manual labour costs, making the business perform more efficiently.

A thermal printer is a great tool to process professional invoices because it can print at a speed of 20 mm/second. This is nearly seven times the speed of standard receipt printers. Also, these printers do not require ink or ribbons.

Low maintenance

Another fascinating aspect of thermal printing is its low maintenance costs as compared to other printers. Traditional thermal printers come in a variety of degrees of integration, and it is directly proportional to the overall service life. These degrees are generally broken down into three broad categories, each more integrated than the next. The more integrated, the longer the expected service life. The less integrated, the shorter the expected service life.

Thermal printer bill’s format

Key elements in a thermal printer bill/invoice

1) The name, address, and contact details of the seller or the company issuing the invoice should be mentioned

2)The customer name, mobile number, etc.

3)The date and time of the transaction for tax-related purposes

4)The invoice should contain the details of the goods or services sold. In the case of goods, it should mention the name of the product, the number of products sold and the GST numbers of the products sold.

5)A clear price distribution should be mentioned. It should have a list price, the tax levied, and discount, if any

6) The source of payment should be mentioned (cash, debit card, credit card, UPI, and more)

The post Thermal Printer Bill Template appeared first on MyBillBook.

Understanding Cash Vouchers

A cash voucher is a document or instrument that represents a certain amount of money that is used for petty expenses. It is typically used as a form of payment and serves as proof of purchase or receipt. Cash vouchers are widely utilised in retail, hospitality, and service industries.

Different Types of Cash Vouchers

Petty Cash Vouchers: These vouchers are used to reimburse small, regular expenses incurred in an organisation, such as office supplies, refreshments, or minor repairs.

Gift Vouchers: These vouchers are often issued by retailers and allow recipients to redeem a specified value towards purchasing goods or services.

Travel Vouchers: Travel agencies and airlines often provide these vouchers as a means of payment or compensation for transportation, accommodation, or related expenses.

Expense Vouchers: These vouchers are used to record and reimburse employee expenses, such as travel, meals, or other business-related costs.

Importance of Cash Vouchers

• Documentation and Accountability: Cash vouchers provide a systematic record of financial transactions, allowing businesses to maintain accurate financial records and track expenses efficiently. They help prevent fraud and ensure transparency in financial operations.

• Auditing and Compliance: Cash vouchers are vital supporting documents during audits, tax filings, or regulatory compliance checks. They provide evidence of expenditures and help establish the legitimacy of financial claims.

• Cash Flow Management: By utilising cash vouchers, organisations can monitor their cash inflows and outflows effectively. This enables better financial planning, budgeting, and forecasting, which are crucial for maintaining a healthy financial position.
• Customer Satisfaction: Cash vouchers, such as gift vouchers, can enhance customer satisfaction by providing a convenient and flexible means of payment. They also serve as promotional tools to attract and retain customers.

Major Benefits of Using Cash Vouchers

• Financial Control: Cash vouchers help organisations control cash transactions by enforcing a standardised approval process. This reduces the risk of unauthorised or fraudulent expenses.

• Improved Expense Tracking: Cash vouchers simplify expense tracking by categorising and recording expenditures systematically. This facilitates accurate financial reporting and analysis.

• Streamlined Reimbursement Process: Cash vouchers streamline the reimbursement process for both employees and organisations. They provide a documented trail of expenses, ensuring timely and accurate reimbursement.

• Marketing and Promotion: Gift vouchers and other promotional cash vouchers can be utilised as effective marketing tools, incentivising customer loyalty, attracting new customers, and boosting sales.

• Cost Reduction: By implementing cash vouchers, organisations can reduce the use of cash and associated risks, such as theft or loss. Additionally, automated voucher management systems can streamline processes, reducing administrative overhead.

Cash Voucher Format – Details to be Included

A cash voucher format is a template used to create a cash voucher document that serves as proof of cash payment. It contains all the necessary details to record and validate the cash voucher.

• Company information
• Voucher Identification – Cash Voucher as the header
• Serial Number
• Date of Payment
• Voucher Value – both in numerical and written form
• Terms & Conditions
• Recipient Information
• Signature of Designated Authority
• Recipient’s Signature

Also read about:

The post Cash Vouchers appeared first on MyBillBook.

Understanding Purchase Return Journal Entry

A purchase Return Journal Entry is a type of accounting transaction that records the return of goods to the supplier. It is a crucial aspect of the purchasing process and requires accurate recording to ensure the financial statements reflect the true state of affairs.

Definition of Purchase Return Journal Entry

Journal entries for purchase returns are a record of a purchase return transaction. It shows the credit entry to the supplier’s account and the debit entry to the inventory account. This journal entry is essential for maintaining accurate records of purchases and returns.

Importance of Purchase Return Journal Entry

Accurate journal entry for purchases ensures the financial statements reflect the correct inventory levels, accounts payable, and cost of goods sold. It also helps in tracking the purchase returns and keeping a record of the reasons for the return.

What to include in Purchase Return Journal Entry

Purchase return journal entry should include the transaction date, the supplier’s name, the amount of the return, and the reason for the return. It should also have a credit entry to the supplier’s account and a debit entry to the inventory account.

Types of Purchase Return Journal Entry

When recording a purchase return, two types of journal entries can be made: full purchase return and partial purchase return.

Full Purchase Return occurs when the entire purchase is returned to the supplier. In this case, the journal entry will credit the accounts payable account and debit the cash or accounts receivable accounts if the payment was already made.

Partial Purchase Return occurs when only a portion of the purchase is returned. In this case, the journal entry will credit the accounts payable account for the returned amount and debit the inventory account for the number of goods returned.

Steps to Record Purchase Return Journal Entry

1. Review the invoice to determine the items being returned and their original cost.
2. Identify the accounts involved, including the accounts payable account, inventory account, and cost of goods sold account.
3. Create the journal entry by debiting the accounts payable account and crediting the inventory account and cost of goods sold account.
4. Include any applicable taxes or fees in the journal entry.
5. Double-check the accuracy of the journal entry.
6. Post the journal entry to the general ledger to update the company’s financial records.

Importance of Accurate Purchase Return Journal Entry

Avoiding errors in financial statements:

An accurate journal entry for purchases helps avoid errors in financial statements. The financial statements give a clear picture of the company’s financial position, and any errors in the statements can lead to wrong decisions.

Ensuring accurate inventory tracking

An accurate purchase return journal entry helps track inventory levels accurately. This helps avoid overstocking or understocking inventory, which can lead to financial losses.

Maintaining good vendor relationships

Maintaining accurate journal entries for purchase returns helps maintain good vendor relationships. Vendors appreciate businesses that keep accurate returns records, which helps build trust and better relations.

Summarising the significance of purchase return journal entries, the conclusion emphasises the avoidance of errors in financial statements, accurate inventory tracking, and maintaining vendor relationships.

Read more about accounting

The post Purchase Return Journal Entry appeared first on MyBillBook.

Bills Payable Meaning 

Bills payable are promissory notes issued by a company to pay for goods or services. The bill is usually for a short period, ranging from 30 days to one year. If the company does not pay the accounts payable by the due date, it can lead to legal action.

Bills payable can be of different types, such as trade bills payable meaning, commercial bills payable, and bank bills payable. The company’s suppliers issue trade bills to purchase goods and services. Commercial bills are issued by banks and are used to finance a company’s operations. In addition, the company issues bank bills payable to borrow money from the bank.

Role of Balance Sheet in Financial Reporting

The balance sheet is used by investors, creditors, and analysts as an essential financial statement that gives a snapshot of a company’s financial position at a specific time.

Liabilities are an essential component of the balance sheet, and bills payable are one of the critical components of liabilities.

How Bills Payable Affect Balance Sheet

They affect the balance sheet by increasing the liability component of the balance sheet. This is because the amount the company owes is reported as a liability on the balance sheet. 

Do you know bills payable come under which type of liability?

Bills payable due within a year are reported as a current liability. Bills payable due after a year are reported as a long-term liability.

Importance of Tracking Bills

It is essential to track accounts payable to manage a company’s cash flow effectively. If a company does not pay its creditor obligations on time, it can lead to legal action, which can be costly. Tracking bills payable helps a company stay on top of its financial obligations and ensures that the company pays its creditors on time.

Strategies for Managing Bills Payable

Managing bills is crucial for a company’s financial health. Here are some strategies to manage creditor obligations effectively:

Negotiate: Negotiating good terms with suppliers is essential to manage outstanding invoices effectively. In addition, negotiating longer payment terms can help improve cash flow.

Prioritise: It is crucial to prioritise and pay the bills on time to avoid legal action.

Monitor: Regularly monitoring outstanding invoices can help identify discrepancies and avoid late payments.

Consider: If a company struggles to pay its outstanding invoices, it is essential to consider alternative financing options, such as short-term loans or lines of credit.

Tips for Effective Management of Bills Payable

Here are some tips for effective management:

1. Create a schedule: Creating a schedule can help keep track of due dates and avoid late payments.
2. Use automation tools: Automation tools can help streamline the process and reduce errors.
3. Monitor cash flow regularly: Monitoring cash flow can help identify issues and avoid late payments.

Read more about accounting

The post Bills Payable in Balance Sheet appeared first on MyBillBook.

Tax incentives are provisions in the tax code designed to encourage certain economic activities. They can take many forms, including exemptions, deductions, credits, and preferential tax rates. Governments can need tax incentives to promote economic development, support specific industries, and encourage innovation.

There are two ways for small businesses in India to get tax, interest, and credit benefits from the government:

1. Registration under the Startup India Action Plan (SIAP) through the Department for Promotion of Industry and Internal Trade (DPIIT)
2. Udyam Registration Portal by Ministry of Micro Small and Medium Enterprises

Udyam Registration does not provide any specific tax benefits for businesses. However, it may give some tax benefits depending on the nature of the business. Read about these incentives in detail below.

Udyam Registration Portal

The Udyam Registration Portal is an online platform that allows startups to register with the government and access the benefits and support measures provided by the Central Government of India. The portal is open to all startups that meet the eligibility criteria. In addition, the portal includes a private limited company, partnership firm, or limited liability partnership operating for less than seven years. To register on the portal, startups must provide details about their business, including their products or services, target market, and growth plans.

Startup India Action Plan (SIAP)

The Startup India Action Plan is a government initiative launched in 2016 to promote and support the growth of startups in India. The initiative provides a range of support measures to help startups get off the ground, including access to funding, mentorship and networking opportunities, and regulatory support. One of the critical ways the Startup India Action Plan helps startups is through tax incentives.

Tax Benefits under SIAP

The Startup India Action Plan provides tax benefits to eligible startups. These include income tax exemptions on profits for up to 7 years, capital gains tax exemptions, and tax deductions on expenditures incurred on research and development. These incentives can help startups retain more of their profits, invest in growth and expansion, and reduce the overall tax burden on the company.

Tax exemption under Section 80IAC of the Income Tax Act 1961 (IT Act)

Eligibility

1. Must be recognised as an eligible startup by the DPIIT
2. Must meet the conditions in Section 80IAC of the IT Act.
3. Must obtain a certificate from the Inter-Ministerial Board by submitting Form I with supporting documents.
4. The Inter-Ministerial Board may review the application and either grant a certificate or reject it.

Benefits

1. An eligible startup can claim a deduction of 100% of its business profits for three consecutive assessment years out of five years starting from the year incorporated the startup. 
2. This deduction can be claimed for any three consecutive assessment years in five years starting from the year the eligible startup is incorporated.

Tax on Employee Stock Options (ESOPs) deferred for eligible startups under section 156(2) of the Income Tax Act 1961

Eligibility

1. Must be recognised as an eligible startup by DPIIT.

Benefits

1. Can defer Income tax on ESOPs from the time they exercise them.
2. From the financial year 2020-21, the TDS will not be deducted, nor the tax is paid when filing an Income Tax Return for the year the ESOPs were allotted.
3. The tax liability for ESOPs arises within 14 days from
   1. The end of the relevant assessment year (48 months after the end of the assessment year)
   2. The date the employee sells the ESOP shares
   3. The date the employee stops working for the company allotted the ESOPs
4. The startup’s liability to deduct tax at source (TDS) on the ESOPs is also deferred.

Angel tax exemption under section 56(2)(viib) of the IT Act

Eligibility

1. The company must be an eligible startup by DPIIT.
2. The company must be a private or public company or limited liability partnership (LLP) on or after April 1, 2016, and before March 31, 2023.
3. Paid-up share capital and share premium after issuing or proposing to issue shares is less than INR 25 crore.
4. Has not invested in any assets listed in clause 4(iii) of the G.S.R. notification 127 (E) for seven years from the latest financial year’s end in which shares were issued at a premium.
5. Must file a declaration in Form 2 with DPIIT seeking exemption from section 56(2)(viib) before issuing shares. This declaration is forwarded to the CBDT(Central Board of Direct Taxes) for approval.

Benefits

1. Section 56(2)(viib) of the Income Tax Act (IT Act) levies a tax on your private company. Taxing occurs when it issues resident shares at a value above the fair market value of the shares. This tax is considered “income from other sources”.
2. This tax is exempt for eligible startups that meet certain conditions.

Availing Tax Exemptions under Section 80-IAC of the IT Act:

Startups registered on the Udyam Registration Portal and meeting the eligibility criteria can avail of tax exemptions under Section 80-IAC of the Income Tax Act. This provision allows startups to claim exemptions on their profits for up to 7 years. To claim the exemption, startups must apply to the DIPP (which means Department of Industrial Policy and Promotion) and provide evidence of their eligibility. 

The Inter-Ministerial Board setup by the DIPP validates Startups for granting tax-related benefits. The Board comprises the following members:

1. Convener,(Additional Secretary, Department of Industrial Policy and Promotion)
2. Representative of Ministry of Corporate Affairs, Member
3. Representative of the Ministry of Electronics and Information Technology, Member
4. Representative of the Department of Biotechnology, Member
5. Representative of the Department of Science & Technology, Member
6. Representative of Central Board of Direct Taxes, Member
7. Representative of Reserve Bank of India, Member
8. Member (Representative of the Securities and Exchange Board of India)

Documents required to apply through the Form-1 for the tax exemptions under section 80-IAC of the IT Act are

1. Copy of Memorandum of Association and Board Resolution (if any)
2. Copies of Annual Accounts (Updated financial statements – Balance Sheet and Profit & Loss statement, certified by CA – for the last three financial years
3. Copies of income tax returns for the last three financial years
4. Updated Pitch deck and Video

Availing Angel Tax Exemption under Section 56(2)(viib) of the IT Act:

The Angel Tax Exemption is an Income Tax Act provision allowing startups to claim exemptions on investments received from angel investors. To avail of this exemption, startups must be registered on the Udyam Registration Portal and meet the eligibility criteria, which include being a private limited company or a limited liability partnership that has been in operation for less than seven years. In addition, startups must also provide evidence of the investment received from the angel investor, such as a copy of the investment agreement.

Subject to the fulfilment of additional prerequisites, a qualified startup must file a legally signed statement in Form 2. The DPIIT shall transmit such declaration to the CBDT upon receipt. Other documents needed are

1. Form of the declaration on letterhead;
2. Section 140 of the IT Act requires the declaration to be digitally signed by a person authorised to verify the return of income.

The Startup India Action Plan is a valuable resource for startups in India, providing a range of support measures, including tax incentives, to help them grow and succeed. By registering on the Udyam Registration Portal and availing of the tax exemptions and deductions provided under the initiative, startups can reduce their overall tax burden and retain more profits to invest in growth and expansion.

The post Tax Incentives Under the Startup India Action Plan appeared first on MyBillBook.

Difference between profit maximisation and wealth maximisation

Understanding the difference between profit maximisation and wealth maximisation, requires understanding the concepts of profit and wealth.

Wealth relates to and reflects your whole financial condition and net worth, whereas profit refers to the amount of money you make on an investment or business enterprise.

Increasing profits is always a desirable thing. However, there are some circumstances where raising earnings and relying primarily on them could be harmful to the company’s health and, in the long term, negatively impact total wealth.

Profit maximisation and wealth maximisation are the two main goals of financial management. As the name suggests, profit maximisation refers to increasing a company’s profits, whereas wealth maximisation strives to raise an entity’s value.

Because profit serves as a gauge of efficiency, maximising profit is the company’s primary goal. On the other hand, the goal of wealth maximisation is to increase the stakeholders’ value.

What is Profit Maximisation in Financial Management?

For any business that seeks to maximise its earnings, the profit maximisation principle is a crucial idea to comprehend. Finding the most profitable manner to produce goods or deliver services is profit maximisation in financial management. It simply means to increase the company’s profitability.

One of the most specific goals of every business is profit maximisation or maximisation of surplus value. In general, profit in accounting and business jargon refers to the portion of the money that remains after revenue surpasses the costs involved in production.

Here, cost refers to the money spent on production, while revenue refers to the money a business makes from selling its products and services. In other words, this profit can be viewed as the long-term net benefit received by shareholders from a corporation.

What is Wealth Maximisation in Financial Management?

Maximising wealth is something that both people and companies should strive to do. 

Profit maximisation is the goal of every business owner, even though wealth maximisation is the company’s goal.

In other words, wealth maximisation aims to increase the owner’s wealth, whose value is determined by the stock price. As a result, maximising wealth differs from maximising profit.

Profit Maximisation vs. Wealth Maximisation: Comparison Table

The post Profit Maximization vs Wealth Maximization appeared first on MyBillBook.

Meesho is the biggest and most reputable reseller marketplace in India. It is an e-commerce platform where resellers can sell products online via Facebook and WhatsApp.

The platform was established in 2015 by two IIT Delhi graduates named Vidit Aatrey and Sanjiv Barnal and now has about 2.6 crore resellers.

Resellers can choose from any listed products and sell them to their customers using social networking apps like Facebook, Instagram, and WhatsApp, owing to the online platform that connects them to manufacturers that list their goods on the Meesho App.

Meesho wants to create a setting where anyone may start a business without needing to invest money.

How to Sell on Meesho?

The selling process on Messho is quick. The vendor should sign up for the Meesho Seller app and proceed with the basic instructions to register for selling on Meesho.

Prerequisite: To start the procedure, the Meesho seller has to have a valid bank account and GSTIN number.

• Create a seller account or register on Meesho

After you create a seller account on Meesho by providing your mobile number, email address, and Meesho seller details, you will need to go through an authentication process using the OTP you will receive on your mobile number. Once you have accessed the supplier panel, you can choose to receive updates on your mobile number by clicking on the appropriate option.

• List down product catalogues.

The following vital element is adding product catalogues to the Meesho platform. Meesho can produce catalogues for goods with several designs.

A catalogue with four to five products increases your likelihood of getting an order. The uploading of well-organised catalogues with excellent product images is required.

Product catalogues with top-notch images and thorough product description aid resellers in selling the listed goods. One can upload a single catalogue or several.

Meesho offers two options for catalogue uploads:

• Bulk upload of catalogues

1. When you select “Catalogue upload” on the Supplier Panel, you have two choices: a) Bulk add new catalogues and b)Create a single catalogue.
2. To access the following page, click “Add new catalogue in bulk”;
3. In the search box, type the product category and choose the right category from the drop-down menu.
4. You will have the choice to download a Template after choosing the product category. If a template still needs to be made available, click Download Template. The template that may be downloaded resembles an excel sheet.
5. The first sheet of the template is for instructions, while the second sheet is for product information. Don’t fill out columns A through C; instead, fill out the other columns as directed.
6. Click the upload template button in the Supplier panel; a popup to choose the template file will appear. Choose the proper template file, then upload it.

• Upload just one catalogue

1. Select the option “Add a Single catalogue” after selecting Catalogue upload on the Supplier Panel.
2. Choose the right category from the drop-down list in the search box on the following page. Check out the instructions for adding product photos. Upload product photos using your computer.
3. Fill out the form with the product information. (If a product is available in numerous colours, there is no need to enter information for each colour separately). Selecting “Copy input details to all items” will copy input information to all goods.
4. Click “Submit Catalogue” and confirm the submit action.

• Receiving Orders

Once product catalogues are available on Meesho, Meesho sellers begin informing their clients about the product via Facebook, Instagram, WhatsApp, and other social media channels.

One of the critical factors in attracting customers is setting the appropriate price. Meesho is a price recommendation tool that gives reasonable rates for a product compared to the competition.

A key component of Meesho’s effort to improve the user experience is the Next-Day Dispatch (NDD) programme. When an order is received under NDD, the Meesho seller is required to ship it the following day.

Meesho will prioritise certain products on the product page if a Meesho seller is eligible for the Next-Day Dispatch (NDD) programme. This also activates the product page’s NDD tag. On average, an NDD tag increases clients’ interest by 12%.

• Delivering Products

Meesho notifies customers via email and the App-Supplier panel when an order is received. Acknowledge the Order.

You can also obtain the manifest and label from the supplier’s panel. Put the label on the packaging once the goods have been packaged.

One must give the package to Meesho’s logistics partner because Meesho handles the product’s shipping at no cost.

Meesho offers an extensive network of logistics partners who will pick up the merchandise from your location and deliver it to the customer’s address. Consequently, you don’t need to worry about shipment.

• Payment Process for Orders

Payments for purchased goods, including orders for “Cash on Delivery,” will be transferred into the selected bank account on the 15th day following the order’s delivery. On the Mesho Supplier panel, you may view these payment-related specifics.

Details on payments, including deposited balances, upcoming payments, and more, may be seen in the Meesho seller panel. You should be aware that the Meesho commission is paid with every product sale.

Why sell on Meesho?

Even though there are numerous e-commerce platforms accessible, sellers still favour Meesho for the following reasons:

• Wide range of products

There are millions of products listed on Meesho, spanning a wide range of categories. This gives Meesho sellers a great opportunity to find the right products to sell and reach a large number of potential customers.

• Meesho has a low commission rate

Meesho’s commission rates are the lowest in the e-commerce sector, and Meesho doesn’t charge commission on a lot of products. Additionally, GST of 18% is charged on the commission fee as required. Meesho doesn’t have a fixed fee, collection fees, or any other hidden fees, unlike many other e-commerce platforms.

• The App is simple to list and use

The Meesho App is easy to use. Catalogue listing is quite easy, and payments are promptly received and presented on the app.

• Selling hubs vs Selling destinations

Meesho offers a great selection of platforms. Suppliers can significantly increase their earnings and give Meesho sellers competitive prices.

Benefits Of being a Meesho Seller

Selling on Meesho offers the following advantages:

• It is the best choice for homemakers and small business owners who want to launch a company without making a significant financial commitment.
• Accessible product listing, affordable delivery, and prompt payment are all provided.
• Meesho offers a significantly more stable competitive environment for new and small businesses than other e-commerce marketplaces.
• On the marketplace, there are no commission fees for Meesho sellers.

FAQs on Meesho Seller

The post Meesho Seller Registration appeared first on MyBillBook.