Accounting Software for Pune IT Companies — Complete 2026 Guide

ERP Group Jul 17, 2026 24 min read Accounting & Finance Software
Accounting Software for Pune IT Companies — Complete 2026 Guide

Pune has become one of India's most important technology cities.

From the established IT parks of Hinjewadi, Magarpatta, and Kharadi to the startup ecosystem of Baner, Aundh, and Koregaon Park — Pune's technology sector encompasses a remarkable range of IT businesses. Global IT services companies with thousands of employees. Mid-sized software development firms serving international clients. Product companies building SaaS platforms for global markets. Digital marketing and web development agencies. IT consultancies providing specialized technology services. Startup studios at various stages of growth and funding.

For every one of these businesses — whether you are a 500-person software services company in Hinjewadi or a 15-person digital agency in Viman Nagar — accounting in 2026 is a specialized function that general trading-oriented accounting software does not serve well.

IT company accounting is different from trading company accounting in fundamental ways. Revenue is service-based, not goods-based — creating GST compliance requirements around service SAC codes and TDS on service payments that goods traders never encounter. Revenue recognition may span months (for long-term projects) or be subscription-based — creating accounting complexity around deferred revenue and multi-period billing. Employee costs are the primary expense (60-70% of revenue for most IT companies) — making payroll accuracy and HR compliance central to financial management in a way it is not for capital-intensive businesses. Project-wise profitability — understanding which client engagements are making money and which are not — is the management information that IT company leadership needs most.

And underneath all of this, Pune IT companies face the same GST compliance obligations — monthly GSTR-1 and GSTR-3B filing, TDS reconciliation, ITC management, and e-invoicing above the threshold — as any other registered business.

This comprehensive guide covers every accounting requirement specific to Pune's IT companies — and how ERP Group's accounting software serves the unique financial management needs of Pune's technology community.

Understanding Pune's IT Company Ecosystem

The Diversity of Pune's Technology Sector

Pune's IT industry is not monolithic — it encompasses distinct business models with different revenue structures, different client profiles, and different accounting requirements.

IT Services and Software Development Companies

Companies providing custom software development, application maintenance, testing, and IT consulting to enterprise clients — often on time-and-material (T&M) or fixed-price project contracts. Revenue is billed monthly or milestone-based. Major clients may be Indian corporates or international companies (in which case the service is an export of IT services).

Product Companies and SaaS Businesses

Companies that build and sell software products — either one-time license models or recurring SaaS subscription models. Revenue recognition differs significantly from services billing — subscription revenue is earned over the subscription period (monthly or annual), creating deferred revenue accounting complexity.

IT-Enabled Services (ITES) and BPO Companies

Business process outsourcing, KPO, and ITES companies providing data processing, customer support, financial services processing, and other business services to clients — often export-oriented, billing in foreign currency to international clients.

Digital Marketing, Design, and Web Agencies

Agencies providing website development, digital marketing, content creation, UI/UX design, and related digital services — typically serving a mix of Pune-based SMB clients and national clients, with project-based and retainer-based billing.

IT Consulting and Staffing Companies

Companies providing IT consulting services or IT talent on staffing basis — billing clients for consultant time at day rates or monthly rates, with the primary cost being consultant salaries.

Tech Startups

Early-stage technology companies at various funding stages — from bootstrapped to Series A/B funded — with specific accounting requirements around investment accounting, ESOP (Employee Stock Option Plan) accounting, and startup-specific compliance.

The Scale Diversity Within Pune's IT Sector

Pune's IT companies range from 2-person freelancer operations to 10,000+ person global delivery centers. The accounting requirements scale accordingly — from simple invoicing and basic GST compliance for micro IT firms to sophisticated multi-entity financial consolidation for large IT groups.

ERP Group's accounting software serves the mid-market IT company sweet spot — 10 to 500 employees, providing IT services or products to domestic and international clients — where accounting complexity is significant but enterprise ERP is over-engineered and over-priced.

How IT Company Accounting Differs From Trading Accounting

Difference 1 — Service Revenue vs Goods Revenue

No Physical Inventory

IT companies do not carry physical inventory — the primary "product" is intellectual work delivered as software, services, or solutions. This eliminates inventory accounting but creates different challenges — how do you value and recognize revenue from work in progress (partially completed projects)?

GST on Services vs Goods

Services attract GST differently from goods — SAC (Service Accounting Codes) instead of HSN codes, different filing requirements in GSTR-1, and the specific services reverse charge provisions that apply to some IT service inputs (foreign software subscriptions, for example).

Difference 2 — Project-Based Revenue Recognition

Fixed-Price Project Revenue Recognition

When an IT company contracts to deliver a software project for ₹40 lakh over 6 months, how much revenue is recognized in month 1? Month 3? Month 6? The correct answer under accounting standards is based on the percentage of completion — how much of the contracted work has been performed. This percentage-of-completion revenue recognition is a specific accounting complexity that trading businesses never encounter.

Time-and-Material (T&M) Billing

T&M projects are simpler — revenue equals hours worked × billing rate, typically invoiced monthly. But tracking hours worked by project and billing correctly requires time-tracking integration with billing software.

Retainer Billing

Monthly retainer clients — paying a fixed amount per month for ongoing services — create straightforward recurring revenue, but the accounting must correctly accrue revenue in the service month regardless of invoice timing.

Difference 3 — Human Capital is the Primary Asset and Cost

For IT companies, employee costs constitute 60-75% of total revenue — making payroll accuracy, HR compliance, and employee cost allocation (by project or department) the most important accounting function by value.

Statutory Compliance for Large Employee Base

An IT company with 200 employees has far more complex payroll compliance than a 200-employee trading company — because IT salaries are typically higher (more employees above PF ceiling, above ESI ceiling), structured with more components (basic, HRA, special allowance, LTA, medical, performance bonus), and subject to TDS at higher rates.

Variable Pay and Bonus Accounting

IT companies commonly have variable compensation — performance bonuses, incentive plans, joining bonuses, retention bonuses. These variable payments have specific accounting timing (accrual in the earning period, payment in a different period) and specific TDS treatment.

Difference 4 — Client Receivables Over Long Credit Periods

IT service companies often invoice monthly in arrears and receive payment on 30-60-90 day terms from corporate clients. For a ₹50 lakh monthly revenue IT company with 45-day average collection, receivables at any point are approximately ₹75 lakh — a significant working capital requirement.

Difference 5 — TDS on All Service Revenue

Every client payment to an IT company is subject to TDS deduction by the client — Section 194C (contracts), Section 194J (technical/professional services), or Section 194O (e-commerce). This means IT companies receive payment net of TDS (typically 10%) and must reconcile TDS credits in Form 26AS with their quarterly advance tax payments and annual tax return.

GST Compliance for Pune IT Services Companies

GST Registration and Threshold for IT Companies

For IT companies in Pune providing services, GST registration is mandatory when annual aggregate turnover exceeds ₹20 lakh (₹10 lakh for some states — Maharashtra's threshold is ₹20 lakh for service providers).

Given that most Pune IT companies bill ₹20 lakh annually within their first few months of operation, GST registration is effectively immediate for any professional IT company.

SAC Codes and GST Rates for IT Services

18% GST — The Standard Rate for Most IT Services

Information Technology and Software Services (SAC 998314 onwards):
Most IT services attract 18% GST — this is the standard rate for the technology sector.

Specific SAC Codes for Pune IT Companies:

SAC 998311 — IT Design and Development of Application Software
Custom software development — mobile apps, web applications, enterprise software — at 18% GST. The primary service category for Pune's software development companies.

SAC 998312 — IT Design and Development of System Software
Operating system development, firmware, embedded software development — 18% GST.

SAC 998313 — IT Design and Development of Network/Systems Software
Network management software, system integration software — 18% GST.

SAC 998314 — IT Technical Testing and Support Services
Software testing, QA services, performance testing — 18% GST. A significant Pune IT sector category.

SAC 998315 — IT Infrastructure Provisioning Services
Cloud infrastructure management, data center services, server management — 18% GST.

SAC 998316 — IT Technical Support Services
Help desk, technical support, application maintenance — 18% GST.

SAC 998317 — Other IT Services
IT consulting, technology advisory, digital transformation consulting — 18% GST.

SAC 998319 — Other Software Publishing and Distribution Services
Software licensing and distribution — 18% GST.

Management Consulting Services (SAC 9983):
Business consulting and management advisory — 18% GST.

BPO and Business Process Services (SAC 9985):
Business process outsourcing services — 18% GST.

Digital Marketing Services (SAC 9983 or 9985):
Digital advertising management, SEO, social media marketing — 18% GST.

Composition Scheme Not Available for IT Companies

The GST Composition Scheme — which allows businesses below ₹1.5 crore to pay GST at a lower flat rate — is not available for service providers (with limited exceptions for restaurant services). Pune IT companies must file under the regular GST scheme regardless of turnover.

GSTR-1 Filing for IT Service Companies

B2B vs B2C Service Invoice Classification

IT companies billing to GST-registered corporate clients — B2B service invoices that must be individually reported in GSTR-1 Table 4A with the client's GSTIN.

IT companies billing to individual consumers or unregistered small businesses — B2C service invoices reported as consolidated summary.

ERP Group generates complete GSTR-1 data from IT service invoices — correctly classifying each invoice, routing to the appropriate GSTR-1 table, and generating the SAC-wise summary required for service businesses.

Reverse Charge Mechanism (RCM) for IT Companies

Import of Services — IT Companies Must Self-Assess GST

When a Pune IT company pays for foreign services — AWS, Google Cloud, Microsoft Azure, GitHub, Slack, Zoom, Adobe Creative Suite — these are imports of services that attract GST under Reverse Charge Mechanism (RCM). The IT company must:

  • Self-assess 18% GST on the foreign service payment
  • Pay this GST directly to the government (no ITC from foreign vendor)
  • Claim ITC of this self-assessed GST in the same GSTR-3B
  • Declare both the RCM liability and RCM ITC in GSTR-3B

This RCM on foreign technology services is a specific compliance area that many Pune IT startups miss in their early months — creating an underpayment that accumulates into a significant liability.

ERP Group tracks foreign service payments and auto-computes RCM liability — ensuring compliance with this frequently missed obligation.

For the complete guide to GST filing and how to fix reconciliation errors in service company contexts, read our guide on GST reconciliation errors and solutions India.

E-Invoicing for Pune IT Companies Above Threshold

For Pune IT companies with annual aggregate turnover above ₹5 crore — which includes most established mid-sized IT firms — e-invoicing is mandatory for all B2B service invoices to registered clients.

For a Pune software development company billing 20-30 corporate clients monthly, this means 20-30 e-invoices per month — manageable with ERP Group's automatic IRN generation.

For the complete guide to e-invoicing for service businesses, read our comprehensive guide on e-invoice generation steps in India 2026.

TDS and TCS Compliance for Pune IT Firms

TDS Received by Pune IT Companies From Clients

Every client payment to a Pune IT company is subject to TDS — the client deducts tax at source before making payment. The IT company receives payment net of TDS.

Section 194J — Technical and Professional Services

Most IT services are covered under Section 194J — TDS at 10% for technical services (software development, IT consulting, testing services). For companies with turnover above the higher threshold, the rate applies from the first rupee.

Section 194C — Contracts for Work

Some IT service arrangements are structured as contracts for work — TDS at 2% (for companies, 1% for individuals/HUF) under Section 194C.

Reconciling TDS Credits

TDS deducted by clients appears in the IT company's Form 26AS (Annual Tax Statement) quarterly — and must reconcile against:

  • Revenue recognized in the period
  • TDS shown on client certificates (Form 16A)
  • TDS claimed as advance tax credit in the annual income tax return

ERP Group's TDS reconciliation module helps Pune IT companies track TDS receivable against revenue — ensuring no TDS credit is missed and advance tax payments correctly account for TDS already deducted.

TDS Deducted by Pune IT Companies on Vendor Payments

Pune IT companies themselves must deduct TDS when making payments to their own vendors:

TDS on Professional and Technical Service Vendors

When paying freelancers, consultants, and technical subcontractors above ₹30,000 (single payment) or ₹1 lakh (aggregate in year) — TDS at 10% under Section 194J is mandatory.

TDS on Rent for Office Space

Office rent above ₹50,000 per month — TDS at 10% under Section 194I. Relevant for Pune IT companies in Hinjewadi, Magarpatta, or co-working spaces above this threshold.

TDS on Contractor Payments

Manpower suppliers, facility management companies, security agencies — TDS under Section 194C.

ERP Group's vendor payment module tracks TDS deduction requirements — alerting when a vendor payment crosses TDS threshold and auto-computing TDS at the correct rate.

Project-Based Billing and Revenue Recognition

The Billing Models of Pune IT Companies

Time and Material (T&M) Billing

Monthly billing based on hours or days worked by the development team. ERP Group generates T&M invoices from timesheet data — multiplying billable hours by contracted billing rates per resource to produce the monthly service invoice.

Fixed-Price Milestone Billing

Project contract divided into milestones — billing triggered when specific deliverables are achieved. ERP Group generates milestone invoices when milestones are marked as completed in the project tracking module.

Monthly Retainer

Fixed monthly fee for ongoing services — ERP Group generates recurring monthly invoices automatically on the configured billing cycle date, eliminating the need to manually create the same invoice each month.

SaaS Subscription Billing

Recurring subscription invoices — monthly or annual — for software products. ERP Group manages subscription billing cycles, prorated billing for mid-month starts, and auto-renewal invoicing.

Project-Wise Cost and Revenue Tracking

For Pune IT service companies, understanding whether each client project is profitable — not just whether the company overall is profitable — is the most valuable management information.

Project Revenue Tracking

ERP Group links each invoice to the specific project — accumulating all revenue billed against each project over its lifecycle.

Project Cost Tracking

Employee costs allocated to each project (from timesheet data), subcontractor costs, direct project expenses (software licenses, cloud costs, travel for client visits) — all tagged to the specific project.

Project Profitability Report

Revenue minus direct costs per project — showing which client engagements are profitable and which are loss-making. This report is the foundation for commercial decisions: which clients to prioritize, which project types to pursue, where pricing needs to increase.

Employee Payroll and HR Compliance for Pune IT Companies

The IT Company Payroll Complexity

Pune IT company payroll is among the most complex in any business sector:

High Salaries With Multiple Components

Typical IT salary structure: Basic (40-50% of CTC), HRA (50% of basic typically), Special Allowance, LTA, Medical Allowance, Statutory Bonus, performance-linked variable pay. Each component has different PF treatment (basic only), different TDS treatment (all taxable components), and different ESI applicability (most IT employees above ₹21,000 gross are ESI-exempt).

TDS on Salaries — Section 192

IT companies with employees whose annual taxable income exceeds the basic exemption must deduct TDS from salaries monthly under Section 192. Computing correct TDS requires estimating annual taxable income — accounting for HRA exemption (many Pune IT employees live in rented accommodation), Section 80C deductions (PF, insurance, ELSS), Section 80D (medical insurance), and other eligible deductions.

PF Compliance for IT Workforce

Most Pune IT employees earn basic salaries above ₹15,000 — the PF wage ceiling. For these employees, mandatory PF contribution is on ₹15,000 (not on higher actual basic), but many IT companies offer voluntary PF on higher basic as a benefit. Managing both mandatory and voluntary PF correctly requires payroll software that supports this configuration.

ESI Not Applicable for Most IT Employees

IT employees with gross salary above ₹21,000 per month are not covered under ESI — which includes the vast majority of Pune IT employees. This simplifies ESI compliance (only a few entry-level employees may be covered) but requires the billing system to correctly exclude ESI for above-threshold employees.

ERP Group's HR and Payroll for Pune IT Companies

ERP Group's HR & Payroll software manages the complete Pune IT company payroll — multi-component salary structures, TDS computation on salaries, PF with voluntary contribution support, ESI for applicable employees, investment declaration management (collecting employee's Section 80C investment proofs for TDS computation), Form 16 generation, and monthly TDS return preparation.

For understanding the complete picture of PF and ESI calculation for technology companies, read our guide on automatic PF ESI calculation software India.

Accounts Receivable and Client Invoicing for IT Companies

The Receivables Challenge for IT Service Companies

Pune IT service companies face a receivables management challenge that is different from trading businesses:

High-Value, Long-Cycle Receivables

A single monthly invoice to a corporate IT client might be ₹15-50 lakh or more — but payment on 45-60 day terms means these invoices are outstanding for extended periods. Missing a payment follow-up on a ₹15 lakh invoice for 30 extra days has real cost.

Client Finance Department Coordination

Large corporate clients have purchase departments, finance departments, and approval workflows that create delays between invoice submission and payment. Understanding where each invoice stands in the client's approval process — versus genuinely overdue versus pending approval — requires client relationship visibility beyond a simple aging report.

Purchase Order to Invoice Matching

Many corporate clients require invoices to reference a Purchase Order (PO) number issued by their procurement system — and will not process payment for invoices without a valid PO reference. Managing active PO numbers and ensuring each invoice carries the correct current PO reference is a client-specific billing requirement.

ERP Group's Receivables Management for IT Companies

ERP Group's CRM software manages the complete client billing and receivables workflow for Pune IT companies — client profiles with GSTIN, billing contacts, PO numbers, credit terms, and outstanding balance visibility. Receivables aging shows each client's outstanding invoices by age — enabling prioritized follow-up based on invoice age and value.

Expense Management and Cost Control for IT Companies

The IT Company Expense Categories

Employee Costs (60-75% of Revenue)

The largest cost category — salaries, PF, gratuity provision, ESIC (for applicable employees), group health insurance premium, and related HR costs. These flow from the payroll module into the accounting system.

Infrastructure and Cloud Costs

AWS, Azure, Google Cloud — cloud infrastructure costs for SaaS companies and for development environments. Office infrastructure, internet, and communication costs. These typically attract 18% GST under RCM (if foreign vendor) or normal ITC (if Indian vendor).

Software Subscriptions and Tools

Developer tools, project management software, collaboration tools, design software — many paid to foreign vendors (triggering RCM GST) or to Indian software companies (normal GST with ITC).

Office and Administrative Costs

Rent (with TDS obligation), office supplies, utilities, housekeeping — standard operating expenses common to any business.

Business Development and Marketing

Client entertainment, travel for client meetings, digital marketing spend, trade shows and conferences — costs that should ideally be tracked by client or business development initiative for ROI analysis.

Project-Based Expense Allocation

For project-based profitability analysis, expenses that can be directly attributed to specific projects — travel for client site visits, specific software licenses purchased for a project, subcontractor payments for project work — should be allocated to the project.

ERP Group allows project tagging on expense entries — so that project profitability reports correctly include both revenue and all attributable costs.

Financial Reporting for IT Business Management

The Management Information Needs of Pune IT Company Leaders

Monthly Revenue Report by Client and Project

Total billed revenue — broken down by client and by project — showing which client relationships and which project types are growing or declining.

Utilization Report

For IT services companies, billable utilization — percentage of employee time that is billed to clients versus overhead — is the primary operational efficiency metric. ERP Group's project time tracking feeds into utilization analysis.

Project Profitability Report

Revenue minus direct costs per project — identifying profitable client engagements and loss-making ones. This is the management report that drives commercial decisions.

Cash Flow Forecast

With large receivables and monthly payroll obligations, cash flow forecasting — when large invoices are expected to be collected, when payroll and statutory payments are due — is critical for Pune IT company financial management.

Overhead Analysis

Fixed overhead as percentage of revenue — monitoring whether the cost base is growing faster than revenue, which is an early warning signal for IT companies scaling through high hiring periods.

GST Liability Position at Month-End

For Pune IT companies, knowing the GST liability position before the 20th (GSTR-3B filing deadline) — how much GST is owed after ITC claims — enables treasury planning for the tax payment.

ERP Group's GST position dashboard shows output tax collected (from service invoices raised in the month), ITC available (from domestic vendor invoices and foreign vendor RCM), and net GST payable — updated in real time as transactions are entered.

Export of IT Services — GST and Foreign Exchange Compliance

When IT Services Are Exports

Pune IT companies providing services to clients located outside India — international software projects, offshore development services, SaaS subscriptions sold to foreign users — are exporting services.

Conditions for Service Export (Zero-Rated Supply)

Under GST, a service is treated as export (zero-rated) when:

  • The supplier is located in India
  • The recipient is located outside India
  • The place of supply is outside India
  • Payment is received in convertible foreign exchange

For Pune IT companies providing offshore development services — receiving USD or GBP payment from US or UK clients — these are typically zero-rated exports of IT services.

LUT for IT Service Exports

Like goods exporters, IT service exporters should obtain an annual LUT (Letter of Undertaking) to export without paying IGST. ERP Group stores the LUT reference and applies zero-rated (EXPWOP) treatment to export service invoices.

GSTR-1 Reporting for IT Service Exports

IT service exports are reported in GSTR-1 — in the same export tables used for goods exports, but with SAC code and service description rather than HSN and goods description.

FEMA Compliance for Foreign Currency IT Revenue

Foreign currency received for IT service exports must be reported to the bank and converted to INR within the prescribed period under FEMA guidelines. ERP Group tracks foreign currency invoice issuance and payment realization — enabling FEMA compliance monitoring.

For understanding how export billing software works for Indian service and product exporters, read our guide on billing software for Jaipur handicraft exporters — many of the export compliance principles (LUT, EXPWOP, GSTR-1 Table 6A) apply equally to IT service exports.

CRM and Client Management for Pune IT Companies

The Client Relationship Complexity in IT Services

Pune IT companies manage complex, multi-stakeholder client relationships — business sponsors, technical leads, finance contacts, and procurement teams all playing different roles in the same client account.

Multi-Contact Client Account Management

ERP Group's CRM software maintains multiple contacts per client — billing contacts (who receive invoices), technical contacts (who review deliverables), and decision-makers (who influence contract renewals) — all within the same client account structure.

Contract and PO Management

Active contracts, renewal dates, PO numbers, PO values and utilized amounts — tracked in ERP Group's CRM to ensure billing always references the correct active contract and does not exceed PO-authorized amounts.

Client Communication History

Meeting notes, proposal submissions, status update records — maintained in ERP Group's CRM as the institutional memory of the client relationship.

Sales Pipeline Management for IT Companies

For IT companies with business development teams — tracking opportunities in the sales pipeline, proposals submitted, commercial discussions, and deal closure timelines — ERP Group's CRM software provides the pipeline visibility needed for revenue forecasting.

Connecting Pune IT to India's Broader Business Ecosystem

ERP Group Across India's Business Communities

ERP Group serves India's complete business ecosystem — from manufacturing communities to trading markets to technology companies. Understanding how India's different business sectors interconnect — the IT companies that build systems for businesses in other sectors, the traders who use technology solutions — informs our approach to building accounting software that works for diverse Indian business realities.

For context on how ERP serves other specialized Indian business communities — see our guides on GST software for Surat diamond traders, ERP for Ludhiana hosiery manufacturers, and billing software for Jaipur handicraft exporters — each representing a specialized Indian business community with its own accounting and compliance requirements, just as Pune's IT sector has its own.

How ERP Group Serves Pune IT Companies

The Complete Pune IT Company Accounting Platform

ERP Group's integrated platform addresses every accounting and compliance requirement of Pune's IT companies:

Pune IT Company Requirement ERP Group Solution
Service invoicing with SAC codes (18% GST) Accounting Software with SAC master
T&M billing from timesheet data Project billing module
Milestone billing for fixed-price projects Milestone-triggered invoice generation
Recurring retainer invoice automation Recurring billing configuration
Foreign currency invoicing for export clients Multi-currency invoice with exchange rate
Zero-rated IT service export under LUT EXPWOP billing configuration
E-invoicing for B2B corporate clients Certified IRP API integration
GSTR-1/3B auto-filing GSTN API integration
RCM on foreign technology subscriptions RCM liability and ITC auto-computation
GSTR-2B ITC reconciliation Automatic download and matching
TDS received tracking (194J, 194C) TDS receivable reconciliation module
TDS deducted on vendor payments Vendor payment TDS management
Multi-component IT salary payroll HR & Payroll Software
TDS on salaries (Section 192) Income tax computation and deduction
PF with voluntary contribution PF ceiling and voluntary config
Project-wise revenue and cost tracking Project accounting module
Client receivables and PO management CRM Software
Vendor and subcontractor management AP module with TDS tracking
Mobile access for leadership team Cloud-native dashboard on any device

Conclusion — Pune IT Companies Deserve Accounting Software That Understands Technology Businesses

Pune's IT sector has established the city as one of India's most important technology destinations — delivering software solutions and IT services to clients across India and globally. The accounting software that supports this sector must understand the specific financial management needs of technology companies — service-based revenue recognition, project-wise profitability, TDS management on both inbound and outbound payments, RCM on foreign technology subscriptions, complex multi-component IT payroll with TDS on salaries, and export of IT services compliance for the significant offshore work that Pune's companies undertake.

Generic trading-oriented accounting software — designed for goods-buying-and-selling businesses — does not adequately serve the IT sector's specific needs. ERP Group's accounting software — with SAC-based service billing, project accounting, multi-currency invoicing for export clients, RCM tracking, TDS management, connected to HR & Payroll software for IT company payroll compliance, CRM software for client and pipeline management, warehouse management system for IT hardware inventory where applicable, and POS software for any direct retail operations — is the complete business platform built for India's technology sector.

Pune builds India's technology future. ERP Group builds the financial management foundation that keeps those technology businesses running accurately, compliantly, and profitably.

Join 5,000+ Indian businesses — including Pune IT companies — running complete, compliant accounting operations with ERP Group.

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Got Questions?

Frequently Asked Questions

IT services — software development, testing, IT consulting, digital marketing, SaaS products, cloud services, and related technology services — attract 18% GST under the Services category. The applicable SAC codes include SAC 998311 (application software development), SAC 998314 (IT testing services), SAC 998315 (IT infrastructure services), SAC 998316 (IT support services), and SAC 998317 (IT consulting) — all at 18%. Business process outsourcing services fall under SAC 9985 at 18%. Management consulting falls under SAC 9983 at 18%. For IT services exported to international clients — where payment is received in foreign exchange — the service may qualify as a zero-rated export of services under GST, with the company billing under LUT (EXPWOP) at 0% on the export invoice.

Payments to foreign cloud and software vendors — AWS, Azure, Google Cloud, GitHub, Slack, Zoom, Adobe, and others — are imports of services that attract GST under Reverse Charge Mechanism (RCM). Your company must self-assess 18% GST on these foreign service payments — calculating 18% of the INR equivalent of each foreign vendor payment and paying this directly to the government through your GSTR-3B. Importantly, you can also claim ITC of this same RCM GST in the same GSTR-3B (in most cases, since these are services used for your taxable IT service output). The net impact is typically zero (RCM paid and RCM ITC claimed in the same period), but the declaration in GSTR-3B is still mandatory. Missing this RCM obligation — which many early-stage Pune IT startups do — creates an accumulated underpayment that attracts interest at 18% per annum from the due date. ERP Group tracks foreign vendor payments and auto-computes RCM liability with each payment entry.

ERP Group handles both service types correctly in a single system. For domestic Indian client invoices — ERP Group generates service invoices with 18% GST (CGST 9% + SGST 9% for Maharashtra clients, IGST 18% for clients in other states), routes them to GSTR-1 Table 4A for B2B invoices, and generates e-invoices with IRN if you are above the ₹5 crore threshold. For US client (export of services) invoices — provided the service qualifies as export of services (recipient outside India, payment in USD), ERP Group generates zero-rated invoices with EXPWOP supply type under your LUT, in USD with INR equivalent, routes them to GSTR-1 export reporting tables, and tracks USD receivables for FEMA compliance. Both transaction types flow into the same P&L, the same GST return, and the same receivables management — giving you a unified financial view of your complete business.

When corporate clients deduct TDS from payments to your Pune IT company — typically 10% under Section 194J for technical services — ERP Group tracks the TDS deducted against each invoice. The payment received is the net amount (invoice value minus TDS), while the TDS deducted is a separate receivable (TDS credit) that you reclaim when filing your advance tax and annual income tax return. ERP Group's TDS receivable module reconciles the TDS credit shown in your Form 26AS against the TDS you have recorded from client payment entries. This reconciliation ensures that no TDS credit is missed when computing your advance tax payments, and that the TDS certificates (Form 16A) you receive from clients match your internal records. At year-end, the reconciled TDS credit position flows into your income tax computation.

Yes — ERP Group's project accounting module tracks revenue and costs at the project level. Revenue from each client is tagged to the specific project when invoices are raised. Direct project costs — subcontractor payments, travel for client site visits, specific software licenses, and other project-specific expenses — are tagged to the project at the time of entry. Employee time allocated to each project flows from timesheet records (if time tracking is configured). ERP Group's project profitability report compares accumulated revenue against direct costs for each active and completed project — showing gross margin per project. For IT service companies managing 20-50 simultaneous client projects, this project-level visibility is the management information that identifies which client relationships and which service types should be grown versus which need repricing or restructuring.

ERP Group's recurring billing configuration supports SaaS subscription models. For monthly subscribers — ERP Group generates invoices automatically on the configured billing date each month, applies 18% GST to the subscription value, and tracks the receivable until payment is confirmed. For annual subscribers — ERP Group generates the annual invoice, applies GST, and tracks the subscription period so that revenue is properly recognized across the subscription year. For mid-period subscription changes (upgrades, downgrades, cancellations) — ERP Group handles proration, generating a credit note for the unused portion and a new invoice at the changed rate. The recurring billing automation significantly reduces the administrative overhead of maintaining a growing subscriber base — ERP Group generates, emails, and tracks hundreds of subscription invoices monthly without manual effort for each one.

For a 50-person Pune IT company, the ERP Group transition is structured to minimize disruption to ongoing billing and payroll operations. The implementation begins with data migration — importing your client master (with GSTINs, billing contacts, PO details), vendor master, chart of accounts from Tally, employee master with salary structures, and opening balances. For IT companies with active projects, ongoing project billing history is migrated so ERP Group can continue billing against active client relationships from day one. Payroll history is migrated so PF, ESI, and TDS records are continuous. The parallel running period (typically 2-3 weeks) allows your team to validate ERP Group outputs against your existing Tally records before full cutover. Training covers billing staff (invoice generation, GST), accounts team (GSTR reconciliation, TDS management), HR team (payroll processing), and management (reporting dashboards). For a 50-person IT company, the complete transition typically takes 4-6 weeks — with significant ongoing time savings in GST filing, payroll processing, and financial reporting from the first month post-implementation.

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