Accounting & Books Maintenance
Accounting & Book Keeping Outsourcing Company in India
- Ideal for Startups and Foreign Companies, to get their day to day accounting updated
- Low Cost | Accounting by Qualified Accountants (CA/CMA) on software
- Retainership Fee Starts @ Rs 1,20,000 + GST annually
Book Keeping and Accounting Service at a glance
Many people use the terms book keeping and accounting interchangeably, but the fact is the former is the first step to the latter, i.e. book keeping is the stepping stone of accounting.
Book keeping is an activity of recording the financial transactions of the company in a systematic manner. For example Transaction day book, Journal and Ledgers.
Accounting is an orderly recording and reporting of the financial affairs of an organization for a particular period. For example Balance Sheet, Profit & Loss Account and Cash Flow Statement. Accounting clearly shows the financial position of the entity which mare book keeping job does not.
LEGAL REQUIREMENTS- Various Law Regulating the business and Taxation in India has put legal compulsion to main Books of Accounts as per Law and Guidelines.
A. Under Income Tax Act
B. Under the Companies Act 2013
C. Under GST Act
Books of Accounts to be preserve for atleast 6-8 years under the provisions of different Acts in India.
FinTax aims to be your trusted Book Keeping and Accounting outsourcing service provider, enabling you to focus on your core business. We offer a wide range of services along with reporting, Analysis on a periodical basis which helps to project your future plan or to take important decision based on the Financial Statements.
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Benefits of Maintaining Books of Accounts
Comply Legal Requirement
Maintaining a proper books accounts as per legal requirement of Income Tax Act, Companies Act, GST Act, Custom Act helps to determine your Tax liability properly, comply Accounting standard as as issued by ICAI if it is a company, file accurate Return with department and Most important become you become stress free.
Forecast your business better
Past Financial Statements ( Like Balance Sheet, profit & Loss Accounts, Cash Flow, Financial Ratios) helps to make a decision for future plan and you can have a better control over your projections.
Stay Organised with Clients
Helps to stay organised when dealing with customers and suppliers.Producing invoices is vital as we cannot rely on supplier’s statements. Planning the receivables and releasing payments is of utmost importance too. All these would be easier done if the books are up to date.
Easy to prepare management accounts
As a business owner, you will have full control on the expenses and income. Having proper books will help you and your management be prepared for any unforeseen shortcomings.
Easy access to Critical Data
By maintaining books of accounts in an organised manner helps you find critical data and easy to prepare financial ratios to check the performance of the business.
Make easy for Bank Finance & Private Funding
Your books of accounts talk about your financial credibility and you need to have a minimum 2-3 years on record for you to get funded. It is important you must have Balance Sheet, Profit & Loss Account and Cash Flow Statement at initial and based on that you can workout your projections and plan.
Avoids interest and penalties Companies Act
There is a statutory obligation for all the companies to maintain their books of accounts on accrual bases and as per to the double entry system. They are required to keep their books for inspection at the registered office of the company during business hours.
Legal Requirements of Accounting and Mainting Books of Accounts in India
A. Under Income Tax Act
- As per Section 44AA of Indian Income Tax Act Books of Accounts required to be maintained by specified person.
- Under Section 44AB, Tax Audit is compulsory if turnover exceeds specified limit of Rs 25 Lakhs/ 1 crore / 2 Crores of the business entity. For that Books of Accounts required to maintain.
B. Under the Companies Act 2013
- Every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches and such books shall be kept on accrual basis and according to the double entry system of accounting as per Section 128(1).
- File Audit report Balance Sheet and Profit & Loss Statement annually with ROC.
- Also has to Comply Accounting Standards as issued by The Institute of Chartered Accountants of India.
- Books of Accounts shall preserve for a minimum period of 8 years.
- Non Compliance Penalty – If the managing director, the whole-time director in charge of finance, the Chief Financial Officer or any other person of a company charged by the Board with the duty of complying with the provisions of this section, contravenes such provisions, such managing director, whole-time director in charge of finance, Chief Financial officer or such other person of the company shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees or with both as per section 128(6).
C. Under GST Act
Section 35 provides that every registered person shall keep and maintain, a true and correct account of
- Invoices, Debit note, Credit note.
- Production or manufacture of goods ( for manufacturing unit)
- Inward and outward supply of goods or services or both
- Stock of goods
- Input tax credit availed
- Output tax payable and paid and
- goods or services imported or exported
- Such other particulars as may be prescribed
