ORGtraq Review

Case 1:

In MSMEs either 1 to 2 resources would handle all of HR, operations, finance, and the same resource may also act as secretary or assistant to the owner or CEO. Usually, enough emphasis would not be given to non-revenue generation activities like operations and management and focus usually would be on the functional area on which the company is generating income. This can lead to a lack of accountability of resources and in turn results in low productivity and quality issues. A typical project management software would track the timelines and milestones on an independent basis with no integration to HR, Billing, and payments. That makes hard to make the resource accountable when he or she doesn’t meet the ETC. A typical use case would be: assume a Charted Accountant (CA)’s office has taken up the job order for preparing financial statements for one of their clients. The billable amount is agreed as Rs.10,000/- by both parties. When CA has quoted Rs.10,000 for the agreed services, his assumption was that his cost would be Rs. 7,000/- when he uses resource A to complete this job for a period of 7 days with an understanding that resource A’s monthly salary is Rs.30,000/-. At the time of execution, the CA firm might have used Resource B whose remuneration is Rs. 60,000/- which is higher than Resource A’s remuneration. Another possibility is the firm might have still used Resource A for this job but, resource A took 15 days to complete the job. In both cases, the firm has made a loss despite completing the job order. The owner will only realize this loss if he has a proper management process in place. After the job successfully executed, the owner has to raise the invoice which usually is a manual process and error-prone. It is very much possible that the client might have delayed the payment and operations/finance personnel because of their busy schedule may for forget to remind the client and more importantly a GST must be filed by the firm after Invoice is raised. The same example would also extend to TDS payments, Payroll, PF, ESI and other facets of the organization like policy management, document collaboration between client and company in a secure way.

Case 2:

Organizations usually focus on invoice management and turn a lenient eye on taxes and compliance.

Example: X is a service provider company that has raised an invoice to its client Z for Rs.5,00,000. Z agrees to pay the invoice amount by deducting the TDS. It is the responsibility of Z to file the TDS and X to file the GST on time. The primary focus lies in business generation and R&D for both X & Z organizations and may turn negligent to the monthly and quarterly tax filings on time resulting in penalties.

Accountri generates transaction data readily accessible for organizations to pass them on to their auditors to file GST & TDS on time.

Case 3:

Policies are clear, simple statements about possible or potential issues that may arise with any of the stakeholders and how the organization intends to address the issue. Organizations usually overlook version controlling policies and ensuring the current version is distributed and accepted by the stakeholders.

Example: Organization X had limited stakeholders when it was in the initial stage. X might have created a primitive version of the Non-Disclosure Agreement (NDA) and got it signed by all the stakeholders. In the meantime, while X is growing, it might have updated NDA multiple times. X has forgotten to distribute the updated NDA to its earlier stakeholders assuming they have signed the current version of the NDA. In contrast, the stakeholders have signed a previous version of the contract. When there is a dispute, it is a surprise to the organization that the agreement doesn’t have recently updated terms and may not give an edge to X to press any action against the violations.