Challenges
The manual work this trade still runs on, what it costs, and what changes.
Export invoices built by hand
- How it is done today
- A dollar invoice is typed in a document, the INR rate looked up separately and the LUT line pasted in
- Cost or risk
- Missing LUT declarations and exchange rates the CA has to correct before the return
- With Finocket
- Export invoices in the client's currency with the INR rate, with the LUT declaration and LUT number printed
The LUT lapses unnoticed
- How it is done today
- Someone remembers to renew it each April, or does not
- Cost or risk
- Exports invoiced without a valid LUT attract IGST the firm has to pay
- With Finocket
- A reminder before the annual LUT lapses
Milestones over-billed or forgotten
- How it is done today
- A spreadsheet tracks what percentage of each SOW has been invoiced
- Cost or risk
- A tranche billed twice, or the last milestone never raised
- With Finocket
- Milestone tranches by percent or amount against a parent total that cannot be exceeded, with the SOW reference and milestone name on the invoice
Time-and-materials hours leak
- How it is done today
- Developers log hours in a project tool, and someone exports and retypes them at month end
- Cost or risk
- Unbilled hours and wrong rates on T&M invoices
- With Finocket
- The timer records time against client and project, and unbilled hours become lines at the rate card with the resource role
AMC and support renewals slip
- How it is done today
- Renewal dates live in a calendar or a sales head's memory
- Cost or risk
- Months of support delivered without an invoice
- With Finocket
- Retainers, AMCs and subscriptions invoice themselves on a recurring rule
Annual prepaid contracts distort monthly revenue
- How it is done today
- The full year is booked as revenue in the month it is paid, then adjusted at year end
- Cost or risk
- Monthly profit swings and year-end adjustments
- With Finocket
- Deferral schedules release prepaid revenue month by month
Client TDS credits do not match
- How it is done today
- TDS deducted by each client is checked against the annual tax statement once a year
- Cost or risk
- Credits lost to mismatches and a flat rate assumed for every client
- With Finocket
- Record each client's TDS section and the TDS they deduct; the rate stays in the TDS table
Resold licences tracked outside the books
- How it is done today
- A sheet of which vendor's licence was sold to whom and on what term
- Cost or risk
- Renewals missed and resale margins unclear
- With Finocket
- Licence items carry the principal vendor and licence term