PRACTICE DETAILS
- Lawyer Mr. Shaman Jain
- Skills Accounting
- CATEGORY Accounting, Compliances
ABOUT THIS PRACTICE
Accounting is the process of storing, sorting and recording financial transactions. As per the law, it is mandatory for all businesses to submit their books of accounts to the Income Tax (IT) Department. Most of the start-ups tend to disregard this requirement initially and later on struggle to put together their accounts while raising funds or during acquisition. The process of maintaining the books internally is definitely a tiresome and an expensive affair, but completing it can remarkably save the company from the troubles of not meeting the requisites of the IT Department, reflects a positive sense about the status of business to the promoters and shareholders, substantiate eligibility for loans in later years, and even satisfy investors.
Benefits
- To gauge the income and expenditure of the business: To ensure a smooth and transparent business, every individual, firm or a corporation must remain updated and completely aware of the income and expenditure incurred or generated. This assists them in planning and strategizing their financial resources and utilize them accordingly.
- Timely access to operational information: Updated records grant access to operational information to the management. Although business owner(s) or managers are not directly connected with all transactions, accounting and bookkeeping help them to keep an eye on all the transactions timely and regularly.
- Regular reconciliation rationalise decisions: Accounting is all about regularly reconciling the data . Reconciliation can be done monthly or quarterly and it assists management to analyze the profitable or damaging aspects of the business. Therefore , analysis of loss and profit can justify all the future decisions.
- Attract investors with accurate financials: Only after complete analysis of business and it's financial conditions investment decisions can be taken. You must ensure that your books of accounts are updates and precise before approaching your investors. Variability may stop investors from into the business.
- Ready to furnish data for timely compliance: Through accounting it becomes easier to extract data and submit it timely for regular return filing, compliance or scrutiny for the businesses.
Documents Required
- PAN Card: Copy of PAN Card of the business entity
- Incorporation Documents: Certificate of Incorporation, MoA – AoA/ LLP Agreement / Partnership Deed
- Bank Statement: Bank Statement of current account in name of business
- Bank Statement of Partners: Bank statement of saving account of partners is also required
- Registration Certificates: Certificate of Government registration, such as GST
- Invoices and Bills: Sales invoices and expense bills for concerned accounting period
- Details of Assets: Invoices of sale or purchase of assets or pending loans
- Preliminary expense: Expenses made for company or LLP registration by promoters
- Details of Cash transactions: All the transactions incurred in cash needs to be booked
