Bookkeeping is a systematic record of financial transactions in the appropriate books of records. What it means is, whether you make a sale or purchase something, a record will be maintained of the transaction. This record will allow you to easily keep a track of all your transactions and will help you analyse how you can cut costs and reduce taxes. Bookkeeping is a function of the accounts department of a business.
Bookkeeping services are necessary for all businesses to ensure accurate operational / financial information. Such information is required by Management, Regulators, and Investors. Also, it is a legal requirement for any business to maintain an appropriate book of accounts to ensure that all relevant taxes are paid and tax filings are made on time.
Bookkeeping is the process of recording financial transactions of a business in an accounting system and the creation of reports. However, many small businesses do not have complete accounting departments and require external bookkeeping services.
Accountants may handle more advanced tasks like tax preparation, budget analysis, and investment development. Both Accountants and bookkeepers frequently use advanced financial software to record and track their information. An accountant takes the bookkeeping data and creates the necessary books of accounts for tax compliance. The danger here is that the work of the bookkeeper has a directly effects the work of the accountant. If the books of accounts are wrong, then the accounting reports will also be wrong. Hence, the importance of using a first-rate bookkeeping service is the key to the success of your business.
Balance Sheet: We provide our clients with financial statements, which summarize the company’s assets, liabilities, and their shareholders’ equity. This helps in giving the investors an idea about what the company owns or owes, including the amount that the shareholders have invested.
Profit & Loss: The P&L service helps a company determine the profit and loss through a statement reports which includes details on the company’s revenues, expenses, as well as the gains and losses which took place during a specific time.
Bank Reconciliation: All India ITR also performs bank reconciliation process for companies to ensure that all the records of your company (inclusive of the check register, general ledger account, balance sheet etc.) are error-free and we also checks if all your bank’s records are correct.
Companies and LLPs are required to maintain books of accounts as mandated by their governing statutes, namely Companies Act, 2013 and Limited Liability Partnership Act, 2008. Further, Income Tax Act, 1961 also obligates the maintenance of the books of accounts, irrespective of the form of business, and has separate provisions related to it. Thus, there may be a situation where a Private Limited Company is required to comply with such legal provisions as well.
Maintaining or not maintaining books by handing over the job to a professional firm does not determine whether you need to undergo audit or not. Furthermore, there are several different types of audits such as, internal audit, cost audit, tax audit and statutory audit. Each audit has its own statutory requirements, thresholds of being conducted with relevant deadlines and due dates.
How we can help you
* Maintain— General Ledger, Accounts Receivable (AR), Accounts Payable (AP), Fixed Assets Management
* Close books periodically – monthly/annual – help process with statutory auditors
* Provide MIS reports are customized to your specific needs
Points to Note
* Recording transactions in an excel sheet is a partial exercise. You need to maintain additional books of accounts like Journal, Ledger, Trial Balance, Cash Book, P&L A/c, Balance Sheet and Cash flow Statements in commonly accepted accounting software.
* If accounting is the product, accounting standards are its prescription. Accounting standards are enacted and published by The Institute of Chartered Accountants of India, meant to be followed by businesses for true and fair
view of their activities. All accounting standards are not mandatory for all forms of businesses. Simply put, bigger is your business, more are the accounting standards which needs to be followed.
* You need to maintain accounts mandatory whether you are incurring losses or earning profits. Not earning revenue cannot be an excuse to non-maintenance of books. As long as you are entering into transactions, you need to account for the same. The interesting thing is that if you maintain accounts in the years of losses, and file tax returns for the same, you get the benefit of setting off losses in the years of profit generation.
* 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. 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.
