Budgeting
It assists organizations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals.
Company Details | |
Act | No specified Act |
Registration Requirement | No |
Number of members | Only 1 |
Separate Legal Entity | No |
Liability Protection | Unlimited |
Statutory Audit | Not mandatory |
Ownership Transferability | No |
Uninterrupted Existence | No |
Foreign Participation | Not Allowed |
Tax Rates | Low |
Statutory Compliances | Less |
Tags: accounting, and, bookkeeping, services
What is Accounting?
Accounting is the systematic process of recording, analyzing, and interpreting the financial transactions. It is the responsibility of every business – whether large or small to furnish their accounting records to the Income Tax Department. Generally, startups neglect these issues and, after a few years, they are forced to deal with them, plus interest. It's always a good idea to keep track of your finances and provide information to government organizations to avoid difficulties like raids and fines. Companies are required to update the annual returns regularly.
What is Book-Keeping?
Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. For a number of reasons, bookkeeping is an important aspect of your accounting process. Companies can track all information on their books and make key operating, investment, and financing choices with proper bookkeeping.
Individuals who manage a company's financial data are known as bookkeepers. Companies would not be aware of their current financial situation or internal operations without bookkeepers.
It assists organizations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals.
In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.
To ensure a smooth and transparent business, every individual, firm or a corporation is required to know about the income and expenditure incurred or generated. This helps them to plan and strategize their financial resources and exploit them accordingly.
Up to date records provide access to operational information to the management. Although business owner(s) or managers are not directly associated with all transactions, accounting and bookkeeping help them to keep an eye on all the transactions from time to time.
Accounting comes with the reconciliation of data periodically. Monthly or quarterly reconciliation helps management to analyze the beneficial or detrimental aspects of the business. Hence, futuristic decisions can be rationalized with the analysis of loss and profit.
Investing in any business would be followed only after complete analysis of business and its financial condition. While approaching investors, you need to make sure that your books of accounts are up-to-date and accurate. Inconsistency may refrain investors to jump into the business.
Accounting makes it easy to extract data and submit it on time for regular return filing, compliance or scrutiny for the businesses.
PAN Card, Certificate of Incorporation and MoA – AoA of Private Company
Financial Statements must be audited by independent auditor
Bank Statement of current account in name of business
Bank statement of saving account of partners is also required
Certificate of Government registration, such as GST
Sales invoices and expense bills for concerned accounting period
Invoices of sale or purchase of assets or pending loans
Expenses made for company or LLP registration by promoters
All the transactions incurred in cash needs to be booked
Why does your business need a bookkeeper?
Availing a trustworthy bookkeeping service ( offline or online) for any business ensures a well-run accounting system which helps you to manage your business.
An accountant understands the fundamentals of accounting. The proper classification of expenses as capital in nature (eg. Fixed assets) or revenue in nature(eg. purchases) is important. Incorrect accounting can lead to financial losses. Though various accounting tools have come up over the time but the human intelligence is irreplaceable.
Why your business should outsource the option of bookkeeping?
Whether small business accounting be done in-house?
What will you get if you opt for TaxClue online bookkeeping services?
What other related services can I avail along with the bookkeeping?
How secure is my financial data with you?
How secure is my financial data with you?
Is it mandatory to maintain record of all financial transactions?
I got my startup launched a couple of months back. There are very limited transactions. Should i hire a full time accountant?
Will the accountant visit my office in person?
I already have an accounting software for my firm. Can your experts use the same software?
What kind of financial reports will I get in this package?
I am not using any accounting software. Will I get software access using this package?
Can I specify the accounting software to be used?