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Cash Basis Accounting for C.A.s and Professionals

Creating invoices with multiple service components including service tax attracting and other components like reimbursement, tracking payment history, calculating service tax on received amount automatically and thus generating service tax compliance records is possible with ease using this module.
The best feature is payment history tracking with a very simple interface.

Background
Those professionals who follow cash basis accounting are always challenged by a set of peculiar problems:

  • Creating Descriptive Invoices for Service Items
  • Managing the Receivables
  • Accounting the Revenue on Receipt Basis
  • Tax Compliance on Received Amount
To handle these issues the two simple ways that users apply are:
  • - Create two databases and maintain the records simultaneously; one for accrual entries and other for actual receipts based accounting   OR
  • - Maintain the receivables track in Excel or such other external database and use Tally for only receipt based accounting entries

The Challenges:
The Service Invoices get raised as full amount with Service Tax component etc. but the payment is not always received in one go.

Hence whatever partial amount is received needs to be calculated in reverse manner to arrive at the Base Amount and Service Tax component and then book the Revenue accordingly.
This calls for a complex management of:
  • Raising Invoices with service components (e.g. Accounts Entries for a given period, Audit fees for a certain period, Visit fees and other charges etc.)
  • Do not create accounting impact of these invoices till payment is received.
  • Receiving Partial/Full Amount against the invoices and keep track of the Bill-wise entries.
  • Calculating and Accounting for Service Tax Liability
  • Following Up the unrealized receivables

The above mentioned methods rely a lot on human intervention. This is because two different sets of records / databases have to be referred and updated for every entry and a periodic reconciliation is always required between the two.
Needed Solution Users look forward to a solution that will be easy to operate, will need only one time entry and still create all the requisite information and reports

Apex Answer:
Apex has come forth with most practical solution to tackle these issues and satisfy all the needs. It’s called ‘Cash Basis Accounting for Tally.ERP 9’ Apex solution basicallyallows you to tackle the problem in 3 ways

  • 1It lets you create a detailed service invoices with proper description of rendered services You get to create a Service Category and provide descriptions under this category. All this is provided as a sub-form thus giving flexibility of work.
  • The Invoice may contain components that may or may not have Service Tax Applicability; for e.g. Accounts Writing will be a Service Tax applicable component whereas Travelling Expenses Reimbursement will not attract Service tax.
  • This invoice is not considered for revenue until income is received; either partial or full.
  • Yet the solution allows you to track the receivables by taking into consideration full invoice amounts.
  • When any payment is received from the party, the solution allows you to calculate the Base Amount and Service Tax component by reverse calculationof the received amount automatically. Revenue is booked accordingly – equal to this calculated base amount. As Service Tax is also calculated, compliance with the same is followed correctly.

This gives you freedom to work on a single platform of Tally.ERP 9 that is easy to operate for all the users with no hassles.
List of Features:
The important features of the module are as follows: 1. Invoicing with service items
  • 1It lets you create a detailed service invoices with proper description of rendered services You get to create a Service Category and provide descriptions under this category. All this is provided as a sub-form thus giving flexibility of work.
  • Sub-form entry mode available for service description in invoice
  • Entered text can be used as template in multiple invoices
  • Logo printing in invoice
  • Terms and conditions in invoice
  • Consideration of Non Service Tax applicable items like reimbursement possible
Sample of Service Invoice Sub-Form Sample of Service Invoice Printout 2. Receivables Management Follow up Management with:
  • Outstanding Report - Debtors Summary with drill down facility
  • Outstanding Report - Bill-wise details
  • Visibility of pending receivables and realized payments data
  • Receive amount from party and calculate the same as two components: Base Amount and Service Tax
Party Payment History Report for Receivables management Additional Special Features a. Import of opening balances of outstanding receivables using Excel Template
  • - If the data is being maintained in Tally.ERP 9 or external Excel file, the same can be used to import in apex module using a specially developed Excel template.
  • - In case of Tally.ERP 9 data, it will be exported to Excel and then brought in the template by minor modifications

The template looks like this:

Sr No Invoice No Invoice Date Posting Date Customer Name Description Amount Service Tax Gross Amount RTGS
1 3 01/04/2013 01/04/2014 Debtor 3 Income Tax Work - filing Income Tax return for the Period 2013-2014 25000.00 3090.00 28090.00 HDFC Bank
2 4 01/04/2013 01/04/2014 Debtor 4 Income Tax Work - filing Income Tax return for the Period 2013-2014 25000.00 3090.00 28090.00 HDFC Bank
3 5 01/04/2013 01/04/2014 Debtor 5 Income Tax Work - filing Income Tax return for the Period 50000.00 6180.00 56180.00 HDFC Bank
4 7 01/05/2013 01/04/2014 Debtor 1 Income Tax Work - filing Income Tax return for the Period 2013-2014 5000.00 618.00 5618.00 HDFC Bank
5 10 01/05/2013 01/04/2014 Debtor 4 Income Tax Work - filing Income Tax return for the Period 2013-2014 20000.00 2472.00 22472.00 HDFC Bank
6 14 01/06/2013 01/04/2014 Debtor 2 Income Tax Work - filing Income Tax return for the Period 2013-2014 44000.00 5438.00 49438.00 HDFC Bank
7 15 01/06/2013 01/04/2014 Debtor 3 Income Tax Work - filing Income Tax return for the Period 2013-2014 40000.00 4944.00 44944.00 HDFC Bank
b. Built in package of ADD ON Tally.ERP 9 utilities to reduce your workload Here’s a list of these utilities
  • Address Book
  • -Get One Line Record for Contact Details of Parties

  • Bank details in Party Master
  • -Show Own Bank Details in Invoice for ready reference to the party

  • Day Book As per System Date
  • - Capture system date in every voucher at the time of creation / alteration

  • Avoid Overwriting in Auto Numbering
  • -Avoid change of numbering in booked vouchers – even on back dated entry


Benefits of the module:
  • No need to maintain two books of accounts for outstanding and Service Tax compliance
  • Easy Receivables Management
  • Revenue Booking on Receipt Basis
  • Easy auto calculation of Service Tax on the received amount.
With all the above details, we are sure the users will readily welcome the solution and extend their valuable patronage.
We are ready to extend all the information and our help to enhance your usage experience with ‘Cash Basis Accounting for Tally.ERP 9’.
Call /Mail us today for further details. You are always welcome.

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