Paying MSME suppliers within 45 days

Precision-parts maker · 70 suppliers — Getting paid & cash flow

The CA warned that late payments to small suppliers could stop those expenses being deducted for the year.

What was going wrong

Since Section 43B(h) of the Income-tax Act, payments to micro and small suppliers beyond the agreed term (at most 45 days) matter at tax time — but nobody knew which bills were close.

What changed

Suppliers registered as micro or small are now tagged. Their bills show the due date, and every week the accounts team gets a list of bills approaching the limit, so they are paid in time.

What it changed day to day

• MSME bills: Paid within terms
• Tax surprises: Avoided
• Supplier goodwill: Stronger

How NikERP helps businesses like this

NikERP.cloud is cloud ERP and CRM software for Indian SMEs: GST invoicing, stock, purchase, accounts, customer follow-ups and reporting in one system, with an industry template to start from.