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Accounting and Auditing

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.

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Accounting and Auditing

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  1. Accounting and auditing

  2. Introduction: Accounting is extremely important for recording the financial transactions in a business. Helps in displaying the financial health of your business to your stakeholders.  plays a crucial role in preparing the compiled financial statements.  By law, all businesses have to submit their accounts to the Income Tax (IT) Department periodically. 

  3. What are all important for accounting startups • Basic financial consultation Getting a basic financial consultation from certified experts will guide you on what are the mandatory requirements and what is not.  2.  Appointment of an Auditor As Per the Companies Act, • The Registrar of Companies requires every company to appoint it’s First Auditor within 30 days of commencing the operations. • The book of accounts must be audited every year. 

  4. 3. Bookkeeping The bookkeeping process varies depending on the size and type of every business. it involves maintaining • accounts payable, • accounts receivable, • debits, • credits, • payroll and more.   4. Preparation of accurate annual financial statements and monthly reports Financial reports give you key insights into your company’s financial position, cash flow, volume of sales, etc.,

  5. 5. Filing of IT returns • All companies registered in India should file IT returns on or before 30th September. • The income tax rate may differ depending upon the company’s turnover. • companies file two types of IT returns ITR 6 and ITR 7. It is better to get this done with the help of tax experts who can guide you well with the latest changes.  6. Moving into a cloud-based system • A cloud-based system streamlines all your processes and helps in saving time as all your financial information is stored in the cloud. • You can easily collaborate with your peers, control access, reduce the risk of accounting errors and more.

  6. Conclusion: Accounting helps in evaluating the company’s financial performance and to take better decisions.

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