Many local corporations are having difficulty handling their VAT returns and being NBR compliant at the same time. It’s clear as a day that businesses are seeking methods to simplify their processes. After all, automation of VAT is playing a significant role in enterprises, particularly medium and large ones. There are few aspects you need to consider before choosing an online VAT software in Bangladesh.
With some new regulations from the NBR, it has become crucial to grab the appropriate VAT management software for any organization’s VAT compliance requirements. However, how can one know which one will be the best NBR Approved VAT software in Bangladesh for their company?
Keys to Choose the Right Online VAT Software in Bangladesh
For practically all enterprises in Bangladesh, VAT is a novel concept. All firms must be aware of the VAT in order to ensure that they are following the NRB guidelines. The National Board of Revenue (NBR) of Bangladesh took VAT online years ago in order to make things easier and more systematic for businesses in Bangladesh.
Following this, each and every NBR enlisted VAT software company has come up with their VAT Management software which has made picking the right one a tough job. So, if you really want to add the right software to your business, going through the following aspects can ease up the ‘picking’ a lot easier for you.
Read More:
NBR Approved VAT Software The Complete Guide
Completely Automated
Software that is completely automated eventually gets the essential job done with no or little human intervention. The same can be said for software that automates VAT calculation, return and overall management. There are lots of software companies that claim to develop the best online VAT management software in Bangladesh. However, most of them may fail terribly from the data extraction step through the VAT return preparation phase.
So, make sure that you’re grabbing a solution with End-to-end automation that takes source data from multiple business systems, conducts thorough validations in accordance with FTA NBR VAT legislation, and creates VAT returns that are perfectly good to be submitted on government portals with no errors!
User-Friendly Interface
The best VAT management software must ensure that the solution has an interface that is perfectly user-friendly. If the panel is not easy to understand and intuitive, users may make frequent mistakes and discontinue using it very fast. Users should be able to simply use the solution and examine various financial reports and data.
Some of the leading online VAT software in Bangladesh like Prime VAT provide highly user-friendly dashboards and easy navigation. With access to a variety of key sales/purchase information as well as reconciliation, it offers voice search navigation making it even easier to find features and modules.
Cloud-Based Solution
This is the era of the cloud, software companies no longer depend on their own server or the client’s server to host a solution. Instead, every solution is moving towards cloud hosting, making it available to all regions and compatible with all devices. Thus, online VAT management software should also be cloud-based in order to compete in the market and solve the problems of its users.
The best VAT software in Bangladesh should be able to be implemented in the cloud, depending on clients’ requirements, of course. Many companies may restrict the software company to host their solution within a local server to protect their valuable transaction and Tax-related data. In such cases, a hybrid solution like Prime VAT can be the ideal online VAT management software for those companies.
A way of the VAT automation system that can be used in the cloud flawlessly is to host in a secure server that maintains multi-layer backup. Servers like Microsoft Azure, and Amazon Web Services (AWS) provide its’ users with such facilities without compromising the security.
Minor Customization
Since VAT software in Bangladesh are developed by complying National Board of Revenue (NBR) VAT Act and policies, there is very little room for customization. Thus, businesses can not expect to use a fully customized online VAT management software that will bypass many crucial policies for their convenience. However, minor customization facilities should be entertained by the software development company in Bangladesh.
To clarify the above statement, we can think of some minor changes like access control management, approval path management, user layer management that large corporations may need. Especially when the turnover is very high and several people work in the VAT management process, organizations may employ a hierarchy to ensure that no mistakes occur in the online VAT software in Bangladesh.
Seamless Integration
VAT software in Bangladesh should offer integration with other business software such as enterprise resource planning (ERP), accounts software, production, and inventory software, and point of sales (POS) software based on the needs of the organization. Those solutions may not be developed by the same software companies yet; a bridge between them should be established using an API or other methods.
The best online VAT software in Bangladesh allows integration with other company solutions seamlessly and without errors. This is because, the majority of the time, several business software systems use the same data server that holds the financial records. It’s also possible that a company with lots of branches employs distinct source systems. As a result, VAT automation software must be highly adaptable and readily linked with a variety of systems in order to generate appropriate VAT returns.
Approved by the NBR
As the controlling authority of Value Added Tax (VAT) in Bangladesh, NBR provides very specific and rigid policies and compliances. Therefore, businesses cannot just use any online VAT software in Bangladesh for VAT management. They must choose one from the approved software list mentioned on the website of the NBR. Businesses also have the responsibility to check if the solutions they are using or thinking of using are enlisted there or not.
If the online VAT software in Bangladesh is not NBR-approved and compliant, there is no way businesses can get output from using it. It will just add to their workload and a big question over the business transparency. As NBR applies superior control over the VAT administration and adheres to all national guidelines, businesses simply can not avoid managing it.
Large Data Handling Capacity
Large businesses in Bangladesh execute thousands of transactions and millions of units of production in a single day. All these data need to be stored in the NBR-approved online VAT software in Bangladesh properly. Therefore, corporations should choose the VAT software in Bangladesh that can store, handle, and manage millions of transaction data each day.
In the typical business environment, many major firms have several business touchpoints, a vast client base, and significant data created by a variety of data systems, necessitating the provision for large-scale financial data storage through a web interface. Therefore, the software must be able to manage a significant volume of data within a very short time.
Not only storage and handling, the online VAT software in Bangladesh should also be able to filter, produce valuable insights, and provide accurate reporting of finances to the organization. Therefore, if the system crashes or is unable to fetch data quickly, it becomes purposeless.
Business Intelligence Report
Business intelligence reports need to be available via the solution, giving you an insight into previous and present business activities. All these reports are focused on assisting you in understanding your operations in a better way and making all the adjustments as needed. Plus, the financial reporting should become more accurate with the help of the best VAT management software.
The solution that does not have the ability to produce intelligent reports may not be as appealing and useful to the users. Implementing Artificial Intelligence (AI) and Machine Learning (ML) technologies might be the solution to such obstacles, making the solution more intelligent and valueable.
Validation of Data in Real-Time
The solution you’re picking should be capable of evaluating data in real time so that mistakes can be detected early. As users don’t get to submit VAT returns with blank forms and miscalculations, it is crucial that the online VAT management software offers data validation facilities. The VAT software in Bangladesh should execute thorough data validation checks after the extraction of the source data.
It is a must-have feature to guarantee that users can identify their mistakes quickly and make remedies before completing the VAT return. This way businesses can avoid NBR penalties such as fines and be NBR compliant.
Active Customer Service
While picking the best VAT Management Software in Bangladesh, make sure that their customer service is available all the time so that they can respond to your questions quickly. Also, ensure that the solution you choose has a responsive and active support staff that is knowledgeable about both technical and VAT issues.
Final Words
Cloud-based online VAT software in Bangladesh has become a very handful solution for businesses. There are many alternatives for the specific needs of enterprises of different sizes available in the market. However, without considering the aspects we discussed above, it will not be wise to choose one. Businesses must understand that not all solutions are suitable for their business need.
