Online accounting & bookkeeping services in India is the foundation for the systematic growth of any business enterprise. Online accounting & bookkeeping acts as a support for all other arms of business enterprise.
How & why the accounting & bookkeeping services are beneficial?
1.) Planning for resources: Resource is the baseline where every business operates. So proper resource planning should be done with minimal wastage and increasing the efficiency of the enterprise because it will make it easy for you to bring economies of scale for your business.
2.) Capital adequacy norm: Capital is the lifeline for every business irrespective of its size, some level of capital is required. Some businesses require capital influx to buy some fixed asset or to fulfil the need of working capital requirement. Capital need is fulfilled either by fresh market issues, long term borrowing from banks or NBFC, all of which requires books of accounts for a specified period so to check the viability of your company.
3.) Maintaining books of accounts: Online accounting & bookkeeping services will help you to manage your company’s books of accounts in more systematic way. Also, according to Indian statutory laws bookkeeping is the mandatory requirement for business as per different statute guidelines such as:
(I.) Companies act, 2013
- (Section 128); Books of accounts must be maintained for a period of 8 years immediately preceding the current year.
- (Section 25); “Non-profit companies”/NGO’s are required to keep books of accounts for preceding 4 financial years.
(II.) Income tax act, 1961
- If turnover from business/profession > INR 25, 00,000 or; If income from business/profession exceeds INR 2, 50,000 in any of the 3 preceding financial years, then it becomes compulsory for the assessee to maintain the records of the company.
- (Section 6F); Books of accounts that needs to be maintained viz. Cash book, general ledger, copy of bills & receipts.
- These books of accounts should be maintained for a period of 6 years.
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4.) Improves decision making: Analysing books of accounts properly will improve the decision making power of Investors & management. Not having books of account of your business will create immense barriers for your business in near future, hampering the decision making & affecting the growth. Hiring a Professional bookkeeping services expert will help to improve the quality of business accounts & makes the analysis comparatively easy.
5.) Ease of reporting: Investors interests lies in actual financial position of the company that will help them in analyzing actual value of investment. To prepare these financial statements strong foundational base is needed which is created by strong bookkeeping & accounting services. Balance sheet of the company, Annual financial statements & cash flow statements, they all form a strong strategic aspect.
Financial statements are effectively prepared from bookkeeping & accounting which are done beforehand. Bookkeeping helps investors to keep the details up-to-date & ready for any future references. Bookkeeping is not only about existing investors rather it also facilitates potential investors to make a well versed decision.
FREQUENTLY ASKED QUESTIONS (FAQ’s)
Q.) What is accounting and bookkeeping services?
Accounting & bookkeeping services helps in systematic alignment of your books of accounts so as to get some beneficial information out of it. This helps in the interpretation of company accounts, preparing financial statements, analysis of the company which ultimately boosts the investor’s interests. Therefore it becomes essential to opt for online accounting & bookkeeping services in India.
Q.) What does a bookkeeping service do?
Bookkeeping service will help in managing your books of accounts in the most efficient way. By doing so it would become easy for you to interpret the information easily.
Q.) What are the features of computerized accounting?
- Systematic approach of accounts management
- Automation reduces manual efforts
- Ease in accessing of information
- Accuracy & speed
- Time efficiency
- More reliable
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Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.