How Dunning can Help in Timely Collection of Dues?

The most crucial factor to keep a business sustainable is the steady flow of cash. If the cash flow is interrupted due to negligence in collecting dues, the business’s financial health suffers. Sometimes it may be a seamless process – the client making payments before or on time. However, on some other occasions, you may be required to send in a reminder. How to manage to send a reminder which is persuasive yet not embarrassing for the client? How to balance the narrative? This art of writing effective payment reminders is known as dunning.

What is Dunning?

Dunning is a 17th-century term for the process of asking customers for the money they owe to the company. It can be done in any form – gentle telephonic reminders, email/ formal letter reminders or personal visits. On a more severe level, dunning may involve more severe measures with defaulting customers. Hiring third-party collection agencies and taking legal action are some extreme forms of dunning.

However, in most cases, a softer, politer, and more gentle form of dunning is enough to get your customers to pay the dues. Several factors determine which form of dunning best suits a particular situation. It depends on:

In business, the dunning process is like one of those uncomfortable topics that offset any conversation between two people. For the customer, it might seem invasive or threatening. For the company, it might be problematic to collect the dues while dealing with an uncooperative customer.

dunning process helps in collecting dues

How does Dunning Help in Collection of Dues?

There can be several reasons why a client fails to make payment: insufficient funds in the account, lost or expired cards, or any other technical glitch. Whatever the reason, in case of any failed payments, the company resorts to dunning. Dunning is an automated process that works in several ways:

Generally, the dunning process is handled by the account receivable department of the company. However, in the case of an uncooperative client, the company can outsource the procedure to a third-party collection agency operating within legal bounds.

Effective Dunning Letters – with Samples

Dunning indeed is a problematic area of the dialogue between you and your customer. You being the one chasing the dues, are in a position to set the tone of the dialogue right from the onset. So, while pursuing a debt, you must be careful to

  1. Choose your language correctly and effectively: It is necessary to set the tone right, respectful, polite, yet persuasive. Do not make the statements vague; mention who you are, the commitments, and the dues you are expecting. Explain the issue clearly so that the recipient knows where you are coming from.
Sample 1:

Dear customer,

The invoices listed below are due for payment.

Please ignore the letter if you have paid the amount by the time it reaches you.



dunning same 2

If it is the first dunning letter, the language needs to be as short and to the point as possible. Don’t forget to put the disclaimer that the customer can ignore the message if they have already initiated the payment.

  1. Try to empathise: The letter should not at any point take an accusatory tone. Never make the customer feel that you believe they are trying to evade payment. Try to understand their pain point as, most of the time, delays are unintentional.
Sample 2:

Dear Sir/ madam,

We recently attempted to charge your card registered in our records for recurring payment plans. Unfortunately, the transaction was not successful.

We request you to update your card information at the given link:


Kindly update the details before the 30th because that’s when we will make the next attempt to charge.

If we fail to charge you before all our charging attempts expire, your recurring payment plan will continue.

Recurring payment plan details:

Amount payable:

Next Due date:

Card/ Account details:

Throughout the dunning process, try to maintain a friendly, professional and polite dialogue. Harrying the customers for debts may earn a bad reputation for your business. Having said that, frequent payment anomalies may be unhealthy for your finances. Better to discontinue business with an uncooperative client as the loss will be more than monetary.

  1. Write to the Point: A dunning letter, like every other business correspondence, should be precise, to the point, and clear cut. Do not go on filling pages, as that would be unnecessary. Make sure the letter is high on readability and easy to comprehend. A vague and lengthy dunning letter may discourage your customers from paying instead of persuading them.
Sample 3:

Dear Customer,

Account no.: xxxx00

Balance: x,xx,xxxx INR (as on dd/mm/yy)

Further to our last two payment reminders, we haven’t received payment on the last two invoices. We request immediate payment for all overdue items to bring your account up to date.

Your payments are due on

dunning sample

Please choose any of the payment methods below to take action or intimate us on your payment intentions:

Always write short and crisp sentences, present the details in table form or bullet points. Better readability ensures better attention and prompts instant action.

dunning process

Easy Payment Reminders With Imprezz

As stated earlier, the dunning process is taken care of by the account receivables department of a company. With a one-stop business solution like the Imprezz software, timely collection of dues is a breeze. Imprezz’s automated payment reminders make the due collection hassle-free, saving you time and the embarrassment of writing repeated emails to the customer.

Imprezz software allows you to send four payment reminders at different stages. The first one is sent along with the invoice to the customer by email. The next three can be sent at different times; the software gives you the option to decide the frequency of sending payment reminders. Not just when to send a reminder, you can also decide the content of the reminder.

Depending on the current payment status of the customer, customised reminders can be sent out via mail at different times. All you have to do is to save the customer’s official email address while saving customer details on the software. Each time a reminder is sent via email, the invoice is also sent along with the reminder. What’s more, you can add details of fine amounts in case of a breach with any of the reminders.

The benefits of an automated payment reminder or dunning process are manifold:

Choose Imprezz today and smoothen the dunning process with its unique payment reminders feature.

Also Read:

Is Accounting Online Safe for Businesses? 

Importance of Real-Time Tracking of Accounting Transactions

How to Leverage Accounting Automations? – Small Business Guide

Efficient Resource Planning Techniques for Small Businesses

For every emerging enterprise, the biggest challenge does not involve coming up with a new idea; it lies in sustaining that idea. To be a successful business, the rule of the thumb is to keep it buoyant. A study indicates that only 48.5% of the startups remain open and turn into small businesses after five years of inception. Deft business management aided by efficient resource planning techniques is the mantra for a sustainable business.

What is Resource Planning?

Resource planning is integral to putting together a successful business plan. It involves a total estimate of the resources required for a particular job, and the timeline targeted to close it. Resources include workforce, skill-based allocation of responsibilities to the workforce, infrastructure, and equipment.

Efficient resource planning helps determine

Stages Involved in Resource Planning

Resource planning for a small business involves three crucial stages:

Popular Resource Planning Techniques

There are several ways to strategize and plan resources. Some of them are:


JIT or just-in-time management is a new age resource planning and management technique. From a production management philosophy to minimize inventory cost, it has become a technique directed to mitigate or control waste.

The just-in-time strategy allows ordering materials as and when required in the process of production. The idea is to control costs by reducing overhead expenses on inventory. Thus, you only buy as much as is needed and when it is needed.

To implement the just-in-time method successfully in your resource management plan, you have to have an effective inventory management strategy.

Lean Manufacturing

Lean manufacturing is a production process based on optimising productivity and minimising waste simultaneously in the manufacturing process. In the lean manufacturing philosophy, anything that does not count as value for money in the final product is labelled as waste. Waste includes activities that require time, effort, skills, money but add no value to the final product for the customer. These wastes include:

By controlling ineffective practices, surplus stocks and underutilisation of resources, lean manufacturing

The five core principles to implement lean manufacturing are:

Waste Reduction through Technology

Technology plays a significant role in minimising waste in the production cycle. By waste reduction, we do not simply mean tracking, managing, or disposing industrial waste using technology. Here, waste means the waste of resources, increased lead time, excess of inventories and unnecessary procedures and processes.

Technological advancement has come to play a significant role in minimising this waste. For example, workforce management softwares, financial management softwares, bookkeeping apps etc., improve business efficiency by

Technology has indeed become a prime mover in resource planning for small businesses. The Imprezz software for business operations is the best example in this direction.

How can Imprezz Help in Resource Planning

Imprezz is a new age fintech solution for all your business operations like creating quotations, invoicing, order processing, inventory management, managing payments and receipts etc., to help small business owners keep track of every small detail for smooth operations of the business. Imprezz covers the day to day needs of your business with minimum hassle.

By introducing a one-stop solution to managing your business effectively and efficiently, Imprezz has emerged as a potent technological tool for resource planning.

Here’s how:

In the Indian business climate, such unique technological innovations as Imprezz software can breathe a fresh lease of life. Resource planning revives your business’s health by controlling waste. With the right tools for resource planning, startups can more smoothly level up to small businesses and evolve into a more sustainable model.

More By Imprezz:

Is Accounting Online Safe for Business?

The process of using internet technologies such as your smartphone or web browser to function business accounting is called online accounting. The purpose of online accounting is to replace spreadsheets, manual accounting that is paper-based, and other traditional software so that data can be accessed easily and conveniently. For this purpose, Imprezz can be trusted completely as it is reliable online accounting software that will take care of all your needs.

Benefits of Online Accounting

It goes without any doubt that over the years paper-based accounting, spreadsheets, and desktop accounting software have served the purpose of accounting successfully. However, over time demands of small and medium-sized businesses are changing and that gives birth to the requirement of a bookkeeping solution that is comparatively more agile. 

Let us have a look at some of the benefits: 

1. Increased Automation of Tasks

Online accounting can help improve the quality of your bookkeeping efficiently. It is designed to facilitate the users by automating a series of financial tasks that run in the background. Which would otherwise have to be done manually. This ultimately makes online accounting a quicker solution to manual accounting and your best bet would be Imprezz as it focuses on providing exceptional quality of services to its users. 

2. Ease of Use

Using the right online accounting software is very important to make sure that you are getting the best quality of service. Imprezz is one of the finest accounting software that will provide an easier way to perform financial tasks such as bookkeeping, financial accounting, and a lot more. 

3. A Real-time Overview of Your Business Figures

Many small businesses may find it difficult to get an overview of their business figures when it comes to manual accounting. But the same can be done efficiently with the help of online accounting. For this purpose, Imprezz can be used as it is a great software that will solve all your accounting problems.

4. Scalable Software

Online accounting software like Imprezz is designed in a way that will make it convenient for you to scale the services of your businesses’ needs up or down. Imprezz will allow you to develop a reliable accounting portal for you available 24/7 as it is designed to feature add-ons and third-party apps.

5. Smart Access at Any Time

With the help of Imprezz, you will be able to access your financial accounts while on the go without having to stop at one place and check important updates. Online accounting is a modern way to perform financial reporting as compared to the old-fashioned use of the desktop system. 

Drawbacks of Online Accounting

Below we are going to discuss some of the disadvantages:

1. Data Security

Nowadays it is difficult to find reliable software that can be trusted with your confidential information. Many online software simply lies about keeping your sensitive information and then end up misusing it. Thankfully, Imprezz is one of the software that can be trusted completely with your data.

2. Lack of Customization

This concern usually belongs to the large-scale organizations that run on the systems of legacy. Lack of customization can cause inconvenience while handling data.

Also, it can slow down the overall process of financial accounting. This makes the purpose of online accounting software useless and a waste of time. Imprezz focuses on providing a wide variety of options to its users so they can operate conveniently.

3. Only Available Online

Another drawback is that you need to have an internet connection to access your accounting systems. Without the internet, your data cannot be accessed even if you need to use it urgently. If you are at your office and the power runs out, you will not be able to continue doing your work as it is only available online.

4. Hidden Charges & Fees

This problem can be found at a lot of places in the online industry whether related to accounting or otherwise. The software that you are trusting might later ask you to pay hidden fees and charges not mentioned before. This can cause a lot of inconveniences while doing accounting online. But you don’t have to worry about hidden fees while using Imprezz. 

Using the Documentation Feature at Imprezz

As there are various advantages and disadvantages of using online accounting software, Imprezz is one of the software that will allow you to access your safe financial information anytime and anywhere. The documentation feature at Imprezz will surprise you as it is loaded with creativity. Also, it is very useful to be used by small businesses.

It doesn’t matter if it is a train ticket, a catering receipt, or simply a fuel receipt. All you have to do is upload a PDF of the receipt directly on Imprezz. You can then create the related expense and save it. That’s all.

The boom of the Online Accounting Market

According to new research, there have been shown records of 67 percent of accountants that prefer online accounting software as compared to using the traditional ways of accounting. Due to this, the cost of accounting labour has also been reduced by 50 percent.

That is not all, the market of online accounting is still expanding and by the year 2023, it is predicted to touch around $4.25 billion when currently it is at $2.62 billion. This is a dramatic boost in the market of online accounting which means that it should be recognized more in India. 


From the above discussion, we can conclude that although there are some drawbacks to using online accounting software they can be avoided by using authentic and reliable software like Imprezz. Many businesses have adapted using online software and are here to tell the tale. This implies that accounting online has been made very easy these days. 

Also Read:

what is safety stock

What Is a Safety Stock?

The extra quantity of a product that is stored inside the warehouse to make sure that products remain in stock and an out-of-stock situation that can be avoided is called safety stock. If you manage to maintain this stock successfully, it will serve as insurance in situations where the demand is high. Maintaining it will help you to avoid a situation where you are running out of stock.

Think of it this way, safety stocks will create a security for you for times when time is short and products cannot be arranged as fast by your suppliers. You can simply rely on the extra stock to take care of situations where you are running out of stock.

Imprezz inventory software is one of the best options for you to make sure that various issues related to the shipment, repeated orders, over and understocks can be kept at bay. Tracking will be made easy and your business will run smoothly. As your products will always be in stock, you might make more profit as compared to other businesses. If you succeed in maintaining safety stock successfully, then you need not be worried about when your next batch will get delivered. 

Reasons to Maintain Safety Stock

1. Protection from Unexpected Variation in Supply

For instance, your supplier has to close unexpectedly for the week and you are running out of stock. This can cause an ugly business situation. So in order to avoid wasting your precious time like this, it is better to stick with safety stock. In this way, your supply will last longer and you will be able to work smoothly.

Worried about inventory management? Imprezz has got your back. With its advanced features, Imprezz will take care of all your inventory issues and concerns.

2. Prevent Disruptions in Deliveries or Manufacturing

One of the main purposes of keeping extra stock is to maintain the service levels of your customers and keep them high. In this way, your supply chain will keep running conveniently. With the help of Imprezz inventory software, you need not be worried about those disruptions at all.

3. Compensation for Inaccuracies in Forecast

You might have estimated a certain number of items for one month but in the same month your products sell more than you expected and now you need more stock. Now, with buffer stock lying in your warehouse, you don’t have to disappoint your customers.

How to Calculate Safety Stock?

At times it can get challenging as a retailer to calculate the amount of safety stock levels that you should be arranging for your business. It is convenient to stock enough products that can last until one shipment (or two). Keep in mind that the more you stock you maintain, the higher your chances of earning. So it is recommended to maintain safety stock at all costs. 

You may be wondering how safety stock can be calculated? Simply use the formula below.

  1. Multiply the maximum usage that is done daily by your maximum lead time in days. 
  2. Multiply your average lead time in days by your average usage done daily. 
  3. Calculate the difference that you have obtained from the above two to calculate Safety Stock. 

From the above calculator, it becomes quite easy for small and medium-sized businesses to calculate safety stock. Once you have successfully calculated it, you will be able to analyze the situation of your inventory and manage it in an efficient way. You can also trust Imprezz with managing your inventory as it is very reliable accounting software that is available for you. 

Factors That Determine the Level of Safety Stock 

There are three main factors that need to be considered while calculating safety stock: 

1. Confidence Factor

Each item in the system of Imprezz contains a confidence factor that is quite essential when trying to determine the buffer stock. You can achieve this by applying a higher confidence factor to an item and then witness how it stays in stock for a long period of time. This is a factor that must be considered while calculating safety stock.

2. Sale History

It is obvious that the more powerful history each item has of sales, the better will be the forecast. Seasonal trends can be picked up by reliable accounting software to calculate safety stocks. This can be done in presence of sufficient data points. 

3. Order Period

As safety stock is calculated concerning the order period, therefore the chart of items can go up to days, weeks, and even months. But regardless of the time scale, the stock will still be displayed in a horizontal line. 

Keeping these important factors in mind while calculation of safety stock, everything will run smoothly. You can always depend on Imprezz as it is one of the best accounting and inventory tools available in the market. 

For example, the basic formula is to take into account the number of items sold per day and the stock that you want to hold at any given time. 

If you sell 200 products on a daily basis then the worth of safety stock you intend to have is of five days. According to the formula mentioned above, the total number of products (200) x 5 days will provide you a safety stock of 1000 units.


From the above discussion, we can conclude that safety stock is an essential factor to keep the business running smoothly. As there are numerous steps when it comes to determining safety stocks, Imprezz will help with inventory management and take care of all your needs. We will make sure to manage all your items and safety stock exactly as you need.

With Imprezz, you need not be worried about your stock being calculated properly if the factors being considered and so on. So what are you waiting for, download Imprezz today and let things run faster again! 

Also Read:

Importance of Real-Time Tracking of Accounting Transactions

How can a Free Chartered Accountant seat help in efficiently filling GST?

Inventory Management: Best Practices and Process

exposure draft of revised accounting standard

The Institute of Chartered Accountants of India (ICAI) has recently displayed an exposed draft on income taxes. This draft is for a revised accounting standard. 

The exposure draft is indeed the newest among other few standards of accounting that have been proposed for revision. 

This draft is supposedly applicable to all entities that are not required to adopt the Indian Accounting Standards (Ind AS). This has been notified by the Corporate Affairs Ministry. 

The proposed changes in the revised accounting standard are from the point of view of how deferred taxes are recognized. 

Moreover, the tax expense for a particular period containing deferred tax and current tax also has to be included in order to determine the profit or loss of the mentioned period. 

According to the draft, deferred tax shall be acknowledged for all the differences of timing and is focused on the consideration of probability related to the tax assets that are deferred. 

According to the draft, deferred tax is to be acknowledged and carried forward to an extent when it is confirmed that it is probable and that there is enough income that is taxable in the future. It will be available and deferred tax assets will be available against it to be realized. 

The point where an entity has depreciation which is unabsorbed or carries forward of losses under tax laws, deferred tax is to be acknowledged and carried forward to an extent when it is confirmed that it is probable and that there is enough income which is taxable in the future. It will be available and deferred tax assets will be available against it to be realized. 

As expected, the  ICAI has begun the procedure of upgrading the standards that are mentioned above. These will apply to all the entities to whom Ind AS is not applicable. 

At each balance sheet, the carrying amount of deferred tax assets should be reviewed on the respective date. The entity shall be written down as the carrying amount of a deferred tax asset to an extent where it is not probable anymore. From there, sufficient income taxable in the future will be available against which deferred tax assets will be realized. This is a very important step. 

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Gst revenue collection

Finance Minister Nirmala Sitharam has commended the taxmen for the measures of implementation while dealing with GST fraud. On Thursday, she stated that enhancing the GST revenue collections should now be considered the ‘new normal’.

On the occasion of the fourth anniversary of the tax reform GST, she sent a message to tax officers saying that the base of a taxpayer has almost doubled in the past four years from 66.25 lakh to 1.28 crore which is a huge improvement. 

Moreover, she also stated how the tax revenues have crossed an amount of Rs 1 lakh crore for the past eight months straight. She also mentioned having witnessed a record GST collection of revenue of around Rs 1.41 lakh crore as of April 2021. 

Sitharam said “Commendable work has been done in the year gone by both in the area of facilitation and enforcement with numerous cases of fraudulent dealers and ITC being registered. The enhancement of the GST revenue collections should now be considered as the ‘new normal’.” 

Amidst these tough times when India was battling two waves of the COVID-19 pandemic, the finance minister has expressed satisfaction with the achievement of most implementation challenges of the GST. She also made sure to thank the taxpayers and appreciate them for the support they have shown in turning GST into a reality. 

While commending both the state and central tax officers for making the goods and services tax successful, Sitharam said “Its positive externalities such as unified market, removal of cascading and imp[roved competitiveness of goods and services has helped spur economic growth taking us further on the path to prosperity.” 

The Central Board of Indirect Taxes and Customs (CNIB) has decided to reward the GST payers that sum up to 54,439 with appreciation certificates. This is being done due to their punctuality in filing the cash payment and that of returns of GST in the past four years. The majority of taxpayers are from minor, small, and medium businesses. 

The businesses that are exempt from GST are the ones with an annual turnover of around Rs 40 lakh. Moreover, the businesses that make an income of around Rs 1.5 crore can completely opt from the Composition Scheme and make the payment of just 1 percent of the tax. 

Also Read:

IT Department’s Move to Charge Higher TDS for Non-Filers

43rd GST Council Meeting: Relief to Taxpayers and More

How can a free Chartered Accountant Seat help in efficiently filling GST?

difference between journal and ledger

According to the double-entry system of bookkeeping, each transaction affects two particular accounts. The process of accounting can be defined as the process of recording every financial transaction in the system. This process starts with creating a journal that is followed by a ledger account, trial balance, and final accounts.

The two important pillars that create the base for the preparation of final accounts are Journal and Ledger. The book where all the transactions are recorded as they take place is called Journal. On the other hand, the one in which these transactions are transferred is called Ledger. 

Definition of Journal

The subsidiary daybook in which financial transactions are first recorded is known as Journal. In this scenario, the transactions are recorded orderly regularly so that they can be referred to in the future if needed. A journal consists of two further accounts that define the occurrence of each transaction. One account is that which is credited and the other is debited with an equal amount.

Typically, a journal consists of five entries namely:

Moreover, a journal can either be a single entry where one debit and a corresponding credit account are present. And one compound entry that contains multiple credit and debit entries that are corresponding to each other. 

Definition of Ledger

The account in which transactions are transferred from a journal is called a ledger. It is a principal book that contains several accounts. The transactions that are entered in the journal are then to be categorized and posted into different accounts. Ledger is the set of personal, nominal, and real accounts where a description is recorded concerning its account.

Difference Between Journal and Ledger

We can differentiate between the two pillars of the financial system i.e. Journal and Ledger on the following grounds: 

  1. The book of accounts where all the financial transactions are entered for the first time is called a journal.  After this process, we classify the transactions and record them into a principal account known as a ledger. Both journal and ledger hold a lot of importance when it comes to creating the financial books of accounts. It is necessary to make sure that all the data is stored carefully and calculated correctly. Because one mistake can lead to a bundle of other mistakes that can cause wastage of time. Thankfully, with Imprezz you will be given complete freedom and ease of use. This is because Imprezz offers very useful tools that can be used to create journals and ledgers. 
  2. As mentioned above, a journal is a subsidiary book that records financial transactions in an orderly manner regularly. Sometimes it may get challenging for bigger firms to create multiple journals based on their daily activity. For this purpose, Imprezz can provide its unique features and accounting tools that will help you in taking care of all your financial activity. A ledger on the other hand is a principal book. It is a set of similar accounting transactions that are related to the same person or property. 
  3. Journal is the book of original entry, which is also one of the most important pillars of an accounting system. Whereas, a ledger is a book that can be defined based on a second entry that comes after a journal. 
  4. Another difference between a journal and a ledger is that of order. Transactions are recorded in chronological order in a journal. Whereas, the financial transactions are recorded in an analytical order when it comes to creating ledgers. 
  5. Financial transactions are recorded in a sequential order while recording in a journal. But these transactions are then recorded in the ledger based on respective accounts. If you are worried about creating a journal and ledger from scratch then you don’t have to. This is because Imprezz is here to help you throughout the process of creating your next financial system. 
  6. In a journal, there are respective columns where Debit and Credit are recorded. But when it comes to creating ledgers, the two accounts should be created on opposite sides. 
  7. Another difference between a journal and a ledger is that of narrations. In the journal, there should be a narration mentioned that supports the entry. Whereas, there is no such requirement when it comes to recording transactions in a ledger. 
  8. When it comes to balancing the books of accounts, a ledger needs to be balanced. However, the same is not necessary for the journal. 
  9. Generally, journals can be classified into eight groups following the practice. Ledgers on the other hand can be classified into two such groups. 
  10. The term used for when transactions are recorded in a journal is journalizing. Whereas the term used to record financial transactions in a ledger is simply called posting. 


At the beginning of this article, we talked about the process of how a transaction can be recorded in the financial books of accounts. This process requires a series of actions to be performed. It ensures that the rest of the financial system and entries are running smoothly. Therefore, the financial transactions are recorded in the journal first, and then they are recorded in their classified accounts to be posted in the ledger. 

From the above points, we can conclude that journal and ledger are not the same even though some people believe them to be.  They are quite the opposite. Although, both journal and ledger hold incredible value when it comes to creating the books of accounts accurately and effectively. 

If you need help in creating the journal and ledger or find it difficult to record multiple entries at a time then you can use Imprezz. It is a financial tool available that will help you in simplifying the process of bookkeeping. Thus, saving you a lot of time and effort quite effortlessly. 

Also Read:

Steps to Improve Receivables Management

Importance of Real-Time tracking of Accounting Transactions

How can a free Chartered Accountant Seat help you in efficiently filling GST?

What is SAC code

Business, national or global, is an ever-growing network of traders and consumers involved in the trade of many products and services. Without proper organisational tools, a business can go berserk. Thus, to streamline trade, product classification codes like HSN and SAC are the most practical measures to be taken by the government.

What is SAC Code?

SAC is the acronym for Services and Accounting Code. This is a close cousin of the Harmonised System of Nomenclature or HSN code. It serves to classify and codify products/ services in worldwide trade. This internationally recognised coding system is necessary for all service providers/ business owners while filing GSTR.

The SAC system of classification of services is devised by the Central Board of Indirect Taxes and Customs (CBIC). They help identify taxes and GST rates for calculating tax liability. They are based on the HSN code, the internationally recognised system of classifying goods and services.

Difference Between SAC Code and HSN Code

The Goods and Services Tax (GST) laws came to be implemented in India in July 2017. Under the GST laws, all goods and services are meant to be coded with SAC and HSN numbers for the purpose of classification. While HSN code is intended for goods, SAC code is used to classify different services.
Another difference lies in the number of digits. While HSN code may have 4-, 6- and 8-digit codes depending on the nature of the business or the product in question, the SAC code is always of six digits.

SAC code in GST

How Does the SAC Code Work: Examples

The SAC code is a 6-digit code, where each digit stands for specific criteria of classification:

Benefits of SAC Codes


The SAC code for catering services on flights, trains is 99 63 35. If we break it up and analyse it, we will see that:

Let us look into another example of SAC code 99 54 11 and break it up to understand:

SAC code in invoice

The last two digits vary under the main category of service to denote different subcategories.

The Use of SAC Codes: Government Guidelines

Chapter 99 of the HSN module contains all the information about SAC coding. It explains all about the services to which it is related and how to identify the SAC code of different services. SAC codes are mandatory for filing GST returns and issuing trade invoices. 

As per the government declaration in October 2020, HSN and SAC codes are made mandatory on tax invoices from 1st April 2021. As per this regulation, businesses with an aggregate turnover above 1.5 crore INR in a financial year must furnish the SAC code on service invoices. However, businesses with an aggregate turnover below 1.5 crores are not legally obligated to furnish SAC codes.

In case of violation of these laws, these consequences may follow:

About Imprezz

With a surge of new rules and regulations and revisions of the existing ones, maintaining business transactions and staying updated in taxation details can be problematic. Fintech solutions like Imprezz work on this pain point of large and small businesses. Imprezz provides services like invoicing, tax-related document management, real-time tracking of transactions and payment reminders.

The services provided by Imprezz cater to several aspects of financial management of your business:

Easy SAC Code Invoicing with Imprezz

The Ministry of Finance has mandated the integration of SAC coding in your tax invoices from April 2021. This means a business owner/ service provider cannot afford to miss out on including this code on their tax invoices.

So, to avoid all the hazards of doing it manually, switch to Imprezz for an absolute error-free billing solution. All you have to do is open a new invoice template and put all your information. Information like company logo, business address, consumer’s address, contact details, etc. Further, enter the services’ details, pricing, taxation rate, and GST details with SAC codes specific to that service. Finally, put your digital signature and click on the finish button to complete the process.
Instead of running around in different directions, walk straight up to Imprezz for the one-stop solution to your business’s financial management requirements in keeping with the latest government regulations.

Also Read:

What is HSN code in Invoice? The importance of HSN Code

When is Credit and Debit Note Issued?

Importance of Real-Time Tracking of Accounting Transactions

steps to improve receivables management

The biggest challenge faced by any large or small business, more than sales, branding or expansion, is to keep it buoyant. And one way by which you can keep your business afloat is by ensuring a steady cash flow. A business can sail through highs and lows of profit generation, but it cannot survive an unstable cash flow. To provide that buoyancy, you need to have a proper Receivables Management solution.

What is Receivables Management?

Receivables Management or Managing Accounts Receivables is collecting dues from the buyers/ customers/ clients of your business in time to cut a long story short. It is the most vital part of your business’s financial health. Ensuring sales is the first step towards the financial sustainability of a business. To translate the sales strategy into steady cash flow, every business needs to manage Accounts Receivables par excellence.

A business offers goods, services or solutions to the consumer/ client in exchange for money. Collecting that money from the consumer is known as Receivables Management. The customers owing money to the business are called ‘sundry debtors’, in accountancy parlance. They are called ‘debtors’ because they owe money to the company for their products, services or solutions.

There are only a few companies that have the privilege of selling products or services for advance payment. Most businesses make sales on credit, i.e., they offer the products/ services first and collect the payment dues for these products and services later. The entire process involves:

Easier said than done, without proper planning and up-gradation of the Receivables Management program, your business can become a sinking ship with intermittent cash flow.

Objectives of Receivables Management

To ensure a steady inflow of cash, Receivables Management becomes an integral part of your business strategy. The objectives are to:

Steps to Improve Receivables Management

Create an Accounts Receivables Aging Report:

It is pertinent to have a bird’s eye view of your dues. Creating an AR Aging report will give you a clear picture of who owes you how much after how many days of the issuance of the bill.

Accounts can be segregated by the number of days since the invoice was issued:

The report also tracks the figure that is due against each entry under the above-mentioned categorisation.

Ensure Timely Payments

It is essential to track and follow up with the customers/ clients for timely payment of dues. If you do not receive the dues on time, you won’t be able to return the funds to your creditors. Put up a timeline as part of your credit policy before any business transaction.

Consider Offering an Early Payment Discount

To ensure timely or before-time payments, incorporate a fair discount offer on early payment in your credit policy. This will encourage the sundry debtor to come clean of the debts on time to avail of the discount.

Offer a Payment Plan

Business is also about customer retention. If one of your regular customers informs you about a cash flow challenge that might be keeping them from making the payment on time, make provisions for giving them some leeway. Keep a backup payment plan ready, devise some payment terms mutually agreed upon by you and the sundry debtor and you and close the agreement. Make sure you do not risk your credibility while cutting the sundry debtor some slack.


This is the first rule of financial management. Be it investment or management of your business funds, never put all your eggs in the same basket. Diversifying the client base will ensure that all your cash is not stuck with one type of consumer. For instance, if you have a few large clients who usually pay outside of a 30 to 40-day window, get a few additional smaller clients, ensuring they pay on time.

Make Accepting Payments Easier

Whether it is a cash transaction or a digital transaction, make sure you put up a smooth payment process for your client. Simplifying the collection process prompts quick payments.


With all the business operations going simultaneously, tracking Accounts Receivables can be a necessary but added burden. To save time and effort, outsource your Receivable Management needs to third-party service providers like Imprezz.

About Imprezz

A digital financial management software takes care of all the pain points businesses faced during accounting and bookkeeping. Imprezz is one such fintech solution that takes care of all your financial management needs under one roof. Issuing invoices, tracking payments, and following up with payment reminders, Imprezz covers it all.

How Does Imprezz Help in Managing Receivables

receivables management infographic

Outsourcing Accounts Receivables is the most feasible solution to optimise your REceivables Management strategy. It saves the firm’s time, resources and money while providing an efficient and effective solution to this vital pain point of any business. Softwares like Imprezz can prove to be game-changers in this domain. As an outsourcing partner, Imprezz can take care of the different aspects of your Accounts Management needs, like

All this and much more, with the live tracking and payment reminder features, the Imprezz software ensures that every penny coming into or going out of your account is accounted for. Visit their website, learn more about its offerings, and make this smart addition to your financial management strategy today.

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TDS and TCS changes

According to the Budget 2021, the non-filers of income tax for the last two fiscal year will be subject to a higher TDS (Tax Deducted at Source), and TCS (Tax Collected at Source) rate. It is in case if the tax deduction was 50,000 INR or more in each of those two fiscal years. The mandate will come into practice from 1st July 2021.

To ease the tax deduction process, the Income Tax department of India has come up with a functionality that helps TDS and TCS collectors to identify those “specified persons” or defaulters on whom the higher TDS deduction is to be levied from July 1st. The TDS deductors and TCS collectors will need to check on the functionality of the PAN card of the trader/ individual from whom TDS is to be deducted or TCS is to be collected at the beginning of the financial year.

CBDT’s Declaration

On Monday (21/06/2021), the Central Board of Direct Taxes (CBDT) passed a circular on implementing sections 206AB and 206CCA for a higher tax deduction or collection for non-filers. The Income Tax Department’s tweet reads: 

“New functionality issued for compliance checks for sec 206AB & 206CCA to ease compliance burden of tax deductors/collectors”

How Does it Work?

In a statement made this Tuesday (22/06/2021), the CBDT added, “To ease this compliance burden, the Central Board of Direct Taxes has issued a new functionality “Compliance Check for Sections 206AB & 206CCA”. This functionality is already functioning through reporting portal of the income tax department (” 

The TDS deductor or the TCS collector can enter a single PAN search or a bulk search of multiple PANs. He can check whether they are the specified person or the non-filer eligible for tax deduction or collection or not. The PAN search results for a single search will be available in a PDF version and a downloadable file for bulk PAN search for further reference.

This functionality is a welcome relief for tax deductors or collectors since they can check the PAN/s at the very beginning of the financial year and ascertain the specified persons. And, by doing so, they do not have to check the PAN details of non-specified people time and again throughout the financial year. This means the list of specified persons for FY 2021-22 based on the non-filers of FY 2018-19 and FY 2019-20 stands valid for this entire financial year.


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HSN Code Made Mandatory On GST Invoices from 1st April 2021

43rd GST Council Meeting: Relief for Taxpayers and More