Accounting and Book Keeping
Accounting is the process or work of keeping financial accounts. Every company must maintain proper books of accounts of its affairs. Accounting can be described as a way to communicate the financial health of a business or an organization to any and all interested parties. It is a way of assessing the assets, liabilities and cash flow, or the future of an entity for all current and future investors. It is the lifeblood of a business and all types of business have basic information that is recorded to get that job done. Accounting is the process of storing, sorting and recording financial transactions. All businesses are required by law to submit their accounts to the Income Tax (IT) Department and most need also to file them with the Ministry of Corporate Affairs. Several start-ups tend to ignore this requirement early on, and then scramble to put together their accounts when they are raising funding or being acquired. Maintaining the books in-house certainly is a tedious and possibly expensive affair, but getting it done would significantly reduce pains in complying with the requirements of the IT Department, give the promoters and shareholders a good sense of how the business is doing, prove eligibility for loans in later years, and even satisfy investors.
BENEFITS OF ACCOUNTING AND BOOK KEEPING
Easy to know Tax Compliances
Help to know the Financial Position
Frequently Asked Question
- Registrationwala values and respects the privacy and confidentiality of all information transmitted.
- The information transmitted is always encrypted and then sent through secure channels on the internet
- The information we receive from you is sent electronically and the hard copy of files stays in your office.
- Once we complete the returns and transmit it to you, we will not retain any information sent unless specifically told by you to do so.
- You will review and approve the returns prior to e-filing / sending the prepared returns to your client.
Every company must maintain proper books of accounts of its affairs.
The following transactions must be entered in the books of accounts of the company which must be kept at its registered office:-
- All sums of money received and expended by the company and the matters in respect of which the respect of which the receipt and expenditure took place;
- All sales and purchases of goods by the company; and
- The assets and liabilities of the company.
- In the case of a company engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or other items of cost as may be prescribed relating to certain class of companies as the Central Government may require.
The books of accounts must comply with the following conditions:-
- The books must give a true and fair view of the state of affairs of the company or the branch office, if any, and explain its transaction.
- The books must be kept on accrual basis and according to double entry system of accounting.