ACCOUNTING AND BOOK KEEPING

Accounting is the foundation of any business our accountant is experienced and very much qualified to deal with your prerequisites. Book keeping is a craft of recording exchanges of money related nature on everyday premise on a sequential premise each business must get ready and keep up an exceptional book of records, which is a prerequisite of law just as cutting edge need to conform to burden laws. The size of the business doesn't make a difference, and the legitimate compliances are appropriate in a similar way to all. The instalment of advance expenses, TDS and GST depends on the best possible book keeping of the business.


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ACCOUNTING AND BOOK KEEPING


ACCOUNTING AND BOOK KEEPING

What is Accounting?

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period.

How Accounting Works

Accounting is one of the key functions for almost any business. It may be handled by a book keeper or an accountant at a small firm, or by sizable finance departments with dozens of employees at larger companies. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions.

KEY TAKEAWAYS

1. Regardless of the size of a business, accounting is a necessary function for decision making, cost planning, and measurement of economic performance measurement.
2. A book keeper can handle basic accounting needs, but a Certified Public Accountant (CPA) should be utilized for larger or more advanced accounting tasks.


KEY POINT ON ACCOUNTING OF YOUR BUSINESS

Place of Maintaining
Account

Book of Account is to be maintained at Registered Office of the company or LLP. The board of directors may decide to keep and maintained the books of account at any other place in India. However, such a decision must be intimated to the ROC in Form No. AOC 5 within seven days. in case of LLP, the books must be maintained at the registered office of the LLP.

Finalisation of Accounts &
Audit

At the end of the financial year, final accounts need to be prepared which results in the profit and loss account and the balance sheet for the fiscal year. Any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited

Documents Necessary for Accounting & Tax

• Invoices/Bills raised during the month.
• Purchase Bills or Invoices.
• Sale or Purchase Returns.
• Debit and Credit Notes.
• Detailed Statement of all Bank Accounts.
• Cash Book with vouchers and evidence.
• Any other information of financial nature.


TYPES OF ACCOUNTING

Financial Accounting

Financial accounting refers to the processes used to generate interim and annual financial statements. The results of all financial transactions that occur during an accounting period are summarized into the balance sheet, income statement, and cash flow statement. The financial statements of most companies are audited annually by an external CPA firm.

Managerial Accounting

Managerial accounting uses much of the same data as financial accounting, but it organizes and utilizes information in different ways. Namely, in managerial accounting, an accountant generates monthly or quarterly reports that a business's management team can use to make decisions about how the business operates.

Cost Accounting

Just as managerial accounting helps businesses make decisions about management, cost accounting helps businesses make decisions about costing. Essentially, cost accounting considers all of the costs related to producing a product. In Other Words Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail.

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Frequently Asked Questions

What is the punishment for not maintaining the books of account?

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 in respect of Books of Acounts, 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 500,000 Rs. or with both..

My company has no transaction, do I still have to file ROC Returns and ITR?

Yes, every company which is registered under the companies act must file the annual roc return and ITR within its due date. However, for newly incorporated companies, there is some relaxation on time of holding the AGM. To help companies with NIL or up to less than ten transactions during the financial year, we have straightforward pricing.

What are the documents required for filing ROC Return for the company?

The essential documents are balance sheet, profit & loss account, and audit report for filing the ROC Returns. However, in the annual return of the company information concerning shares, registered address changes of any during the financial year. We would need all ROC filing done during the fiscal year..

What is the penalty in the company does not file its financial statement with the ROC?

According to 134 of the companies act, 2013, the company shall be fined any amount between Rs. 50,000 to Rs. 25, 00,000 depending on case to case basis. Further, every key person in charge, including its directors, may be sent to imprisonment for a term of 3 years or fine between Rs. 50,000 to Rs. 5, 00,000 or with both