Wednesday 20 July 2016

After 1st quarter of FY 2016-17, it is time to visit your accounts and budget. (5 things to do after 1st quarter of year)

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With 1st quarter of FY 2016-17 over, any serious Businessman should ideally sit down and reflect on 1st quarter and analyze each and every spent made as well as revenue received. In this article we will discuss what are the KPIs (Key Performance Indicators) every Private Limited Company/LLP Incorporation/Firm Registration/Online Business Registration should evaluate post completion of 1st Quarter of FY 2016-17
1-    Total Revenue: Any Start-Up needs to grow at minimum 5%-8% MOM growth for first 2-3 years (as the base number is small, this kind of growth is very much achievable). Hence you have to ensure that in next 3 quarters, your revenue should be atleast 4-5 times of Q1 revenue and total estimated revenue should be as per your initial budget (Read this blog for more information on budget http://ca4you.in/blog/2016/04/14/accounting-services-book-keeping-for-start-ups-and-sme/). If the Revenue numbers are not adding up as per your expected plan, it is time to revamp your Sales Strategy and look for new channels of sales as well.

2-      Number of New Customers and Revenue from them: To grow a business, new customer needs to be acquired every month and you have to keep a keen eye on number of new customer acquired every month and % of Revenue generated from them. This will help you to figure out Cost of Customer Acquisition (CoCA) and work out ways to ensure your marketing budget is not hitting the roof.

3-      Revenue from existing customers: If new customer warranties growth, base of the company is existing business. It is a prudent practice to check amount of revenue your business has generated from existing clients. Ideally this number should show a jump of atleast 20% each quarter (based on new customer acquired etc.). The biggest alarm bill for a company is when this number stagnates (or worse, it falls). If so is the case, you have to focus on customer relationship and it is time to touch base all your customers.

4-      Total Cost Incurred and Margin: The basic principle of a business is to generate profit for all the stakeholder and the same cannot be achieved without keeping an eye on cost. It is a prudent practice for any Private Limited Company/LLP Registration/Firm Registration to check all the expense head, compare it without previous quarter and evaluate if the cost could be reduced. Always remember that even 1% saving is a saving!!!

5-      Compliances: Keeping your Government Compliances in order is non-negotiable. Always speak to your Chartered Accountant (and if you do not have one, speak to your Company Registration Consultant) to confirm if all the returns etc. are filed and taxes paid.
Hope this blog was informative for you. Get further updates on not only Accounting/Book-Keeping/Government Compliances but also about all new rules and regulations/opportunities for funds which will be your industry specific
You can like us on Facebook: https://www.facebook.com/ca4youindia
Or Follow us on Twitter: https://twitter.com/ca4you01
We are available on Call @844-7265-465 or at vivek@rrs-group.in
www.ca4you.in (Company Registration Services/Company Formation Services/Company Registration Consultants in Delhi)

Sunday 17 July 2016

Tax Time is here again. (5 Reasons why you should file your Tax Returns on time)




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A necessary evil, Tax Return, is a statuary requirement and individuals as well as corporates are bound to follow it.
Though difficult, we would try to enumerate some of the advantages below for filing Tax Returns on time:
Why to file Tax Return on Time?
1-      Peace of Mind: We have seen in our professional career that in 95% of cases, defaulters end up getting Tax Notices sooner or later (In some cases, notices are served as late as after 4 years). Hence it is a prudent practice to file Tax Returns on time
2-      Assistance in getting Loans: If you are looking for corporate loan or Home Loan/Vehicle Loan, your Tax returns are the most important piece of documents Banks ask for. The better your Tax Record History, higher are the chances of getting loan.
3-      Once a year exercise: You pay your returns once a year and can relax for next 12 months. Not a bad deal at all!!!
4-      Mandatory for Companies: Proprietor-Partners of Firms/ Directors of Private Limited or LLP companies are liable to do annual compliances for their business and are liable in case of any default. If you are not doing any business in your registered firm, please close down the company rather than risking a notice later on
5-      Future Plans: Every entrepreneur has big plans of IPO/Equity Funding. If this is the case with you also, ensure that your Tax Returns are upto date!
Hope this blog was informative for you. Get further updates on not only Accounting/Book-Keeping/Government Compliances but also about all new rules and regulations/opportunities for funds which will be your industry specific
You can like us on Facebook: https://www.facebook.com/ca4youindia
Or Follow us on Twitter: https://twitter.com/ca4you01
We are available on Call @844-7265-465 or at vivek@rrs-group.in
www.ca4you.in (Company Registration Services/Company Formation Services/Company Registration Consultants in Delhi)

Tuesday 12 July 2016

Start-Up India (5 ways to possibly resurrect Start-Up India campaign again)




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In our last blog w discussed why Start-Up India is failing to get expected response http://ca4you.in/blog/2016/07/08/start-up-india-5-reasons-start-up-india-is-failing-to-elicit-favorable-response/
In this article we will explore the ways which could possibly help this campaign achieve its objective i.e. to increase number of entrepreneurs and have more Online Business Registration:
1-    Tangible Benefits: No Start-Up has ever worried on paying Income Tax as it takes atleast 3-5 years for a startup to operationally break even. Hence Income Tax exemption is not a great benefit for any startup (as promised under Startup India campaign). Rather government should bring more tangible benefits like exemption of Service Tax Registration Fees, Waiver of annual compliance fees for 3 years which will atleast allow start-ups to not worry on some of the fixed cost they incur and would be a very tangible benefit for start-ups.
2-    Clear Definition: Start-up should be defined in a very unambiguous manner so that no to create any scope of discrepancy later on. The definition could be as simple as that Start-Up needs to Private Limited Company or LLP who have a dynamic website and an Android App. It will save Government so much pain to find out whether it is a tech start-up or not.
3-    Ease of Access to Scheme: If you google start-up India, you will find various company registration consultants who would be willing to ‘help’ you with company formation, llp registration, private company incorporation but you will not get a single site wherein you get process of registering as a start-up!!!! Government should have a website (single window system) wherein any one can easily go and register their start-up. Keep it Simple Silly!!!!
4-    Ecosystem: Government should allow various ministries to concentrate on having right ecosystem such as HRD ministry should come out with policies to ensure more digitization of educational content.
5-    Debt Funds: Government should allow access to low interest (8% maximum) debt fund of small denomination (say Rs 20 Lacs) with collateral. And the clearance of the same should be within 7 days. True, there will be some misuse of funds like people may actually buy a car with this money but as it will be a collateral loan, the chances of NPA will minimize.
Hope this blog was informative for you. Get further updates on not only Accounting/Book-Keeping/Government Compliances but also about all new rules and regulations/opportunities for funds which will be your industry specific
You can like us on Facebook: https://www.facebook.com/ca4youindia
Or Follow us on Twitter: https://twitter.com/ca4you01
We are available on Call @844-7265-465 or at vivek@rrs-group.in
www.ca4you.in (Company Registration Services/Company Formation Services/Company Registration Consultants in Delhi)

Friday 8 July 2016

Start-Up India (5 reasons Start-Up India is failing to elicit favorable response)








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Start-up India was launched with humongous fan fare and high expectations but the result till now has been ‘lukewarm’ to say the least. Less than 600 applications were received and as per latest figure only 1 made the cut. According to a Company Registration Consultants in Delhi, there are thousands of Online Business Registration and Registration of Company in India every month and hence it requires scrutiny to understand poor response for a project so vital. We evaluate some of the key reasons for it:
1-    Bureaucracy: Right from DIPP to Commerce ministry to IT ministry to almost every government department is involved and we all know that government people has a very distinctive style of working which not only complicates the process but also slows it down. With fast moving environment where first movers have huge benefits, embroiling in bureaucracy is not something what entrepreneurs want.
2-    Ambiguous definition: No one has any idea how to define a start-up under this scheme. Anything which is so ambiguous and open ended and comes under realm of Government is the ideal recipe for disaster.
3-    Lack of Procedural Clarity: Single Window System is require to felicitate the project which has so many stake holders. Interested parties are clueless as to where to go if they want to take advantage of start-up policy
4-    Limited Advantages: The advantages like Tax Exemption etc. is not enticing enough for entrepreneurs to take all the pain (Paying Income Tax on Profits is last thing on mind of entrepreneurs)
5-    Basic Ecosystem: There is lack of basic ecosystem for Start-Ups like support in patent filing, fast process for LLP Registration or Private Limited Company Incorporation and Start-Up India campaign fails to address
In our next blog we will suggest some of the factors which could help revive this project and allows new business registration to really benefit from Startup India Campaign.
Hope this blog was informative for you. Get further updates on not only Accounting/Book-Keeping/Government Compliances but also about all new rules and regulations/opportunities for funds which will be your industry specific
You can like us on Facebook: https://www.facebook.com/ca4youindia
Or Follow us on Twitter: https://twitter.com/ca4you01
We are available on Call @844-7265-465 or at vivek@rrs-group.in
www.ca4you.in (Company Registration Services/Company Formation Services/Company Registration Consultants in Delhi)