Bookkeeping and Accounting Services

For financial management, bookkeeping and accounting are two essential concepts. Bookkeeping and accounting are closely related. However, they are different from each other. Bookkeeping is a concept that mainly focuses on recording day-to-day financial transactions. However, the accounting concept involves interpreting, analyzing and reporting financial data. 

For businesses and professionals, it is important to maintain books of account and accounting records, especially for tax purposes. You can connect with Registrationwala for the best bookkeeping and accounting services in India!

What is Bookkeeping? 

Bookkeeping means the process of recording and organizing the financial transactions of a business in an orderly way. It is a quintessential part of accounting. Book keeping services focus on tracking financial events that take place on a regular basis, like sales, purchases, receipts and payments. It ensures the accuracy and up-to-dateness of financial records. Bookkeeping involves identifying, measuring and recording financial transactions and then classifying them for easy retrieval and analysis. Basically, it creates a comprehensive, organized and accessible history of financial transactions of a company. 

All the companies registered under the Companies Act 2013 are mandated to maintain proper books of accounts. As per S. 128 of the Act, every company must keep a book of accounts as well as other relevant documents and financial statements, at its Registered Office. These records must truthfully represent the company's financial position and adhere to the specific norms of accrual accounting and the double entry bookkeeping system.

Benefits of Bookkeeping Services

Bookkeeping services are essential for a number of reasons, such as the following:

• Bookkeeping plays an important role in helping businesses track what they owe to suppliers. It ensures payments are made on time so that vendor relationships stay strong. 

• It gives a clear picture of the company’s financial health and supports the creation of important reports like the Trial Balance and Balance Sheet. 

• By recording income and expenses accurately, it helps to assess business performance as well as its growth. Most investors rely heavily on these records to understand how the company has been doing and whether their money is being used in a wise manner. 

• Online bookkeeping services help in the management of cash flow by keeping an eye on all incoming and outgoing funds. 

• When it comes to taxes, accurate bookkeeping services ensure the right amount is paid and reports are filed correctly. Therefore, it reduces the risk of penalties/legal trouble. Overall, it keeps your finances in a manner that is organized and ultimately, makes sure your business is on the right track.

What is Accounting?

Accounting means the process of tracking, analyzing, and sharing financial information to help business owners understand their company’s resources, financial status, and performance. Under Indian law, accounting is mandatory for businesses, especially those registered under the Companies Act 2013. Such companies must keep proper books of account, prepare annual financial statements, and get them audited before filing with the Registrar of Companies (RoC). 

Non-compliance can lead to penalties, as specified in provisions like Sections 44AA and 44AB of the Income Tax Act and Section 338 of the Companies Act 2013.

Benefits of Accounting Services

Some of the key benefits of accounting services are outlined below:

 

• By accounting, you ensure compliance with legal and tax regulations. Therefore, you reduce the risk of penalties.

• Accounting helps a company to track its financial performance, manage resources efficiently, and plan for future growth.

• It boosts the credibility of the business in the eyes of investors, lenders, and regulatory authorities.

• It allows for better financial decisions, as it provides accurate insights into costs, revenues, and overall profitability.

• Accounting lays the groundwork for auditing, which involves checking the financial records and statements to ensure they are accurate as well as trustworthy.

Difference Between Bookkeeping and Accounting

Bookkeeping and accounting go hand-in-hand. Accounting relies on bookkeeping to a great extent because it provides the accurate and organized financial data needed for analysis, reporting and decision making. 

But what is the difference between bookkeeping and accounting? To explain, we have outlined all the major differences between them in the table below: 

Why Choose Registrationwala?

Registrationwala is one of the leading services providers of online bookkeeping and online accounting services. Our team consists of Chartered Accountants and financial consultants who come with decades of experience on their hands. This allows us to provide the best online bookkeeping services in India.

Our services make us one of the best outsourced accounting firms in India. Here is why reaching out to us is a good idea:

• Our team of qualified professionals can handle your accounting and bookkeeping requirements. Because of their expertise, your business will be able to stay compliant with tax regulations and accounting standards.

• To provide real time updates regarding financial transactions, we use advanced accounting softwares.

• We maintain transparency in all our dealings, and ensure clear communication and reporting.

• We provide accounting services for small business as well as big business.

For ensuring accurate book of accounts for your business and assistance in accounting process, connect with Registrationwala. We will help you make wise financial decisions for your business and help you in staying compliant.

Frequently Asked Questions (FAQs)

Q1. Who provides the best online accounting and bookkeeping services in India?

A. Registrationwala is one of the best online accounting and bookkeeping service providers in India.

Q2. Is it mandatory for a company to maintain a book of accounts? 

A. Yes. Under the Companies Act 2013 and the Income Tax Act 1961, it is mandatory for MCA registered companies in India to maintain proper books of account. This helps to track financial transactions as well as ensure legal compliance.

Q3. Why is bookkeeping essential for accounting?

A. Bookkeeping forms the base of accounting by recording all the day-to-day financial transactions in an organized way. Accounting then uses this data to analyze and prepare financial reports. Basically, accounting is dependent on bookkeeping.

Q4. Why is accounting essential for auditing?

A. For a company, accounting is a crucial step. It needs to be fulfilled before conducting auditing. Basically, accounting creates financial records and statements that auditors review and verify for accuracy.

Q5. How does accounting help in ensuring compliance with tax regulations?

A. Accounting helps a business to ensure compliance with tax regulations since it helps to calculate accurate tax liabilities, maintain error free records and file tax returns on time. As a result, a business avoids penalties and ensures full compliance with tax laws.