1.From AY 2023-24 onwards, Form 26 AS display only TDS/TCS data. Other taxes like advance tax, Self-assessment tax, refund etc., would be available in AIS (Annual information statement) 2. The list of banks available for e-Pay Tax service at e-Filing portal is provided in the Latest Updates dated 01-Feb-2023. 3. Functionality for filing of rectification request in respect of orders passed by CsIT(Appeals) is live. 4. PAN shall become inoperative from 1st April 2023, if not linked with valid Aadhaar.5. ITRs filed after 31st July 2022 need to be verified within 30 days. Refer to Directorate of System's notification no 05 of 2022 dated 29th July, 2022. 6. Form 10F can be filed manually till 31 March 2023 by Non-Residents neither having PAN nor required to obtain it. Refer Latest Updates for details. 7. The Online return form ITR-A, for filing modified return u/s 170A is now enabled. 8. Co-browsing feature is now available for the taxpayer, to know more kindly refer latest updates.


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ACCOUNTING AND BOOK KEEPING

 

Accounting is the process of tracking income and expenses. An accountant is responsible for offering strategic financial advice in addition to being aware of the company's financial situation.

 

Book keeping services is the process of keeping records of financial transactions and preparing financial statements, such as balance sheets and income statements. In day-to-day operations, a bookkeeper would make sure employees are filing invoices and expenses correctly and handling payroll.

 

In this lesson, we'll go in-depth on accounting and bookkeeping services so you can make a decision on whether you can handle the tasks yourself or need to hire someone.

SERVICES

A bookkeeper is the official record keeper of your business's financials. An accountant is your financial strategist. This professional is responsible for preparing for audits, helping you with tax planning, and offering business financial analysis and advice.

Accounting and bookkeeping services can be handled by one individual but before you make any decisions, find out what each task typically involves.

BOOK KEEPING

Keeping clear business records is important. It helps you understand how much money is owed to you, how much you owe and will prevent you from making costly not to mention illegal errors. It can also help you monitor your business and identify sources of income.

Below is a list of records that you should keep accurately and orderly:

  Payroll and employment taxes

  Sales and purchases

  Expenses

  Bank statements

  Profit and loss statements

  Cash flow analysis

 

Accounts receivable and accounts payable are also two important records to keep. 

Accounts receivable is a claim from an uncollected amount, usually from a sale on credit. For instance, a sale has been made but the money hasn't been collected only credited.

 

Accounts payable is an amount owed to a vendor or credit for completed goods or services. For instance, a small business might have short-term payments to banks.

The official website of the IRS has more information on recordkeeping.

 

 

TAX PLANNING

Tax planning and filing isn't fun but it's crucial to make sure everything is handled correctly. In addition to reducing filing errors and preventing unnecessary audits, an accountant can help you save money. Because it's their job to stay up to date with tax codes and regulations, they'll be able to advise you on how much money your business needs to put aside so there aren't any surprises.

AUDIT

Before you freak out an audit isn't always bad! The dreaded "IRS audit" occurs when a business isn't filing their taxes correctly. However, it's also pretty standard for a business to be audited when a bank or investor wants to understand its financial position to determine the risk before they invest capital.

When it comes to preparing for any audit, your accountant can be your best friend because they'll save you loads of time preparing for the audit.

To prevent your business from getting "the bad audit", here are some tips to follow:

v  File and pay your taxes on time

v  Don't incorrectly (or forget to) file business sales and receipts

v  Don't report personal costs as business expenses

v  Keep accurate business records

v  Know your specific business tax reporting obligations

BENEFITS OF ACCOUNTING AND BOOK KEEPING

v  To gauge the income and expenditure of the business

v  To ensure smoothness and transparency, every individual, firm, or corporation must know about the income generated and expenditure incurred. This helps them to plan and strategize their financial resources and exploit them accordingly.

v  Timely access to operational information

v  Up to date records provide access to operational information at any time to management. Since business owners or managers are not directly associated with all transactions, accounting and bookkeeping will help them to keep an eye on all the activities from time to time.

v  Regular reconciliation rationalizes decisions

v  Monthly or quarterly reconciliation of data helps the management to analyze the beneficial or detrimental aspects of a business. Accounting services come with the additional benefit of periodical reconciliation of data. Hence, future decisions can be rationalized after analyzing the profit and loss.

v  Attract investors with accurate financial statements

v  Investing in any business is followed only after a complete analysis of its financial condition. While approaching investors, you need to make sure that your books of accounts are up-to-date and accurate. Inconsistency in financial statements may refrain investors from jumping into your business.

v  Ready to furnish data for timely compliance

v  Accounting makes it easy to extract data and submit it on time for regular return filing, compliances, and scrutiny of any business.

v  Documents required for Accounting and Bookkeeping Services

v  Company / Business Incorporation Documents

v  Bank statement of a financial year or monthly statement (with remarks)

v  Purchase-Sales invoices, if any

v  Expense bills, if any

v  Any receivable and payable detail

v  Any other Government registration taken

v  Cash Expenses

v  Bank Statement of partner/ members with remarks if used for business transactions

v  Expenses made for company or LLP registration by promoters