It is very important for every company to accurately prepare and file the annual returns at the end of close of each financial year. Any company failing to file the returns will have to bear hefty penalties and fines. With this article, we will provide certain simple steps to file the annual returns by companies.
When the tax season is on the horizon, every enterprising individual out there looks for the easiest way possible to file the returns and be done with them. And why wouldn’t they be? The entire process of filing a return tends to be so difficult that many of these “entrepreneurs” tend to shy away from it, no matter the legal consequences of their actions. However, our team at Registrationwala believes in the firm ways of the legal system and the importance of filing the returns. To that end, we are here to provide you with a way to file an annual return for your company in a manner that is both understandable and comprehensive.
The entire process of filling an annual return requires 4 comprehensive steps and within these steps lies several precautions and necessary details that you should avail at all times.
- Your first step is to maintain a proper book of accounts:
- It is the very first step and the most important one. It is of penultimate importance to be in touch with the financial pulse of your company. It is done through reports in the form of book of accounts. This book will and should entail the following details:
- Details of all the expenditures and purchase of the company.
- Details of all the company assets
- All the transactional and business details of business.
While maintaining these details can be a quite daunting task, you can checkout certain applications which are exclusively catering to the tax-paying crowd.
All these details are needed to be accumulated within a comprehensive and legally understandable financial statement.
- Appoint and auditor:
- Now, in order to make sure that every transaction of the company is recorded in an unbiased manner, you need to appoint an auditor. This Auditor will be independent unbiased, and not be the part of the corporate that runs the company. To explain the latter, following are the ones who cannot be the auditors
- Company directors
- A company employ
- A company client
- An individual who had been in the employment of the company.
- A proper auditing:
- Once the auditor is appointed, the financial books are checked for any sort of discrepancy and all of this goes into the auditor’s report. You can see an auditor as an inspector that checks that there are no fallacies or malignancy involved with the financial report of the company. Once the auditing is done, the reports are presented to the company officials, once the report is approved, we move onto the next step.
- The final filing: This is the step where the report is filed with the company registrar. This filing will entail the details of all the financial and auditing reports and should be filed in accordance to the prescribed format of Ministry of Corporate Affairs of India. This report is supposed to be filed within 60 days of the auditing report.
The process of annual filing is in fact long and jarring. However, if you encounter any issue, you can get in touch with Registrationwala as our team is fully dedicated towards creating the best financial atmosphere so that the companies continue to grow within the legal confines of the country.