Sunday, 17 September 2017

3 Things Modi Government should do post GST Rollout

GST, arguably the biggest Tax Reform since Independence, was rolled with much Fanfare and over 80 million Businesses got their GST enrolment done and record Tax was collected (As per an estimate, the Tax base was increased by over 30%). But the life post GST enrolment has been anything but smooth. Though no one expected GST road to be free of any hiccup especially in a country where people feel (and blatantly proclaim) that Tax Evasion is their fundamental right, there are few steps which needs to be taken on priority to ensure that Road Ahead for GST is a smooth one.

Rockstar Portal for GST Registration Online: GST has been launched in digital era where everything from comb to Charter planes are available Online. GST website not working is not an option at all. You cannot expected Accountants or Business owners to waste their Energy in Online GST Return or Online GST Registration and getting error messages. Apart from this, UI and functionality of this website has to be better than all e-commerce site. Period.

Therefore Government should immediately look for world class player to maintain the GST site with focus on zero down time, privacy, security of data and ease of usage. The job needs to be given to best company across the globe with heavy fines to be placed for any downtime.
Proper Training for GST Return Filing: GST return filing is an Online Process. Though tedious, it is nothing which majority of people cannot understand (especially in Online era). The problem is that, without proper training, it appears more daunting than it actually is.
There has be regular seminars for few months on all Industrial platform like FICCI and at local industrial body for CA, Accountants etc. An easy demonstration of Online GST Enrolment and Online GST return filing should be showcased on all Channels (especially Doordarshan) and people need to be informed about the timelines of broadcast of these seminars through TV Ads and Newspaper Ads.
Reducing GST Tax Slabs: GST was introduced with prime objective to make Tax simpler. Hence the government should focus on achieving this objective at the earliest.
There has to be 3 Tax Slabs at the most. 0% for all the necessary items like food, milk etc. etc. 15% for Items of common use and Financial Service etc. and 28% for all the Luxury Items. Anything over and above this will create unnecessary confusion.
As a country, we required GST and required it earliest. Traders, Small Business Owners should be ready to face issues for atleast a month or so. But it is duty of government to ensure that all the issues are ironed out and businessmen face as little problem as possible.
Provisional release of 90% refund to exporters with ,Interest payable if refund not sanctioned in time ,Refund to be directly credited to bank accounts ,Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime ,Special procedures for job work

Wednesday, 13 September 2017

3 ways your Accounting Consultant can help you grow your business

Accounting is a serious job. An accounting consultant can save lot of money for their clients through Tax Advisory, can help in fund raising (Debt or Equity) by ensuring proper accounting and due diligence are maintained and keep their client safe by doing proper regulatory compliance.

There are various accounting firms in Delhi and hundreds of accounting consultants in Delhi but it is important to know how to make best use of the immense knowledge an accounting consultant possess. Here we will mention 3 advice you would need from your Accounting Consultant.

Tax Optimization: An accounting consultant helps a client to optimize their taxes properly and in the process saves a lot of money for their clients. There are various ways to optimize your tax like booking the expense, taking credit on GST etc. etc. We have observed empirically that a company can save up to 5% of their operations tax with correct advice from accounting consultants.

Fund Raising: Correct accounting practices and proper due diligence is a pre-requisite for raising any form of funds, be it equity or debt. One of the major way an accounting consultant can help you is to ensure that you are always covered on this front. A competent Accounting Consultant would ensure that every revenue earned by company is reported and every expense made is accounted for.

Regulatory Compliances: Accountancy firms helps a company to always ensure that they are compliant and there is no chance of any unwanted notice from any government department such as I.T, PF, ESI, GST etc. etc.

Hence it makes sense for owners/founders/managers to opt for best accountant firms and use their accounting consultant proactively to grow the business. Just to add, an Accounting Consultant is as good as the client and hence it is duty of owners to ensure that they are able to use the Accounting Services in best possible manner.

If you own a start-up or business, click here to get all the support related to your accounts.

Tuesday, 12 September 2017

Things you should know before taking Employees Stock Option Plan (ESOP

The biggest challenge for a start-up company or even Multi-National Company is to make its employees feel connected and valued. Various monetary and non-monetary benefits are given to an employee so that he takes a step towards ensuring the organization’s as well as his personal growth. In our humble opinion Employee Stock Option Plan (ESOP) is the best possible way to do so.

In order to bridge the gap between the position of the top management and the middle and the lower management most of the companies nowadays, offer its shares to its employees at a lower or same rate, so as to make their employees believe that they are one of the owners of the company, and that they should work harder to make their company grow. This scheme is known as the Employees Stock Option Plan.

In abroad, this scheme is usually undertaken when an employee takes over the shares of a person who is willing to leave its position as a shareholder, and thus it’s called the Employees Stock Ownership Plan, where the ‘O’ stands for Ownership and not Option. However, in India it is largely used as a motivating source to make the employees feel valued to the company. It is one amongst the many fringe benefits offered by the employers.

The Employees Stock Option Scheme offers many advantages to the employees, employers, as well as the company. Some of those are:

Shares are undoubtedly a very easy way to make money. However, it is very important to know the share market in order to invest in a company. The advantage that the employees under the Employees Stock Option Scheme have over others is that they know the whereabouts of the company very well, and thus, they can take the right decision by investing in them or not. Once they have invested, the share price of the company goes high, and thus it benefits the company while benefiting its employees.

The employees under the Employees Stock Option plan do not have to pay tax on the income earned by those shares until and unless the shares are sold. However, if an employee owns the shares two years after receiving the option grant and one year after exercising the Employees Stock Option Grant, then he is liable to pay a tax of 20% as a Long Term Capital Gain under Section 112 of the Income Tax Act, 1961. In case an employee suffers loss, then he is eligible to set off that loss by other gains. The tax benefit offered by this scheme, attracts a lot of employees to invest and buy shares of their company.

There is no doubt regarding the fact that the Employees Stock Option Plan offers a way to make easy money, as regular income is achieved through shares. However, some companies offer shares to its employees at a lower rate than the market price. Thus, employees buy shares at a lower rate and then sell those shares once its price hikes. Thus, the Employees Stock Option Scheme is very safe, as regular income is earned and the option of selling the shares is always available to the shareholder.

As discussed earlier, in India, the Employees Stock Option Plan usually serves as a motivating force so that the employees feel that it is their company and that they have to make it reach to new heights. This benefit is for the company as well as the employees, as the employees work thinking that it’s their company, and thus, they work harder and better, benefiting the company. On the other hand, when the employees work harder, they grow, thus benefiting themselves. Hence, this fringe benefit, serves as betterment to the whole organization.

In India, it is a myth that the share market is only for the rich. Hence, the upper and the lower middle class does not invest in shares and prefers gold, which is considered a dead investment as there is hardly any return on investment.

When employees register themselves under the Employees Stock Option Plan, they get a hand of the share market and then they start purchasing shares outside work. Once they are satisfied by their earnings they communicate this thing to their peer network, and suggest them to purchase shares as well. As a result, people purchase less of dead investments like gold, and more of shares.

Thus, there is enough money flow in the economy, and the Reserve Bank of India, does not have to take loan from the World Bank and the International Monetary Fund. There is no problem maintaining the gold reserve as well.

Thus, it strengthens the Indian economy as a whole. The general public is also benefited by this, as they get a regular return on investment, and the option of selling of shares is always available to them.


The employers of the company always think in the best interest of their employees and the company. However, there are some questions you must ask before investing your hard earned money into the Employees Stock Option Plan:

Question 1: What are the terms of the contract regarding the Employees Stock Option Plan if I decide to resign from the company?
Question 2: How many shares will I be offered in the initial agreement, and in the coming years?
Question 3: What is the market rate of the shares and the rate at which the company is willing to offer?
Question 4: What is the company’s total capitalization/Valuation?
Question 5: What is the exercise price of my initial options?
Question 6: What is the vesting period of the Employees Stock Option Scheme?
Question 7: What percentage of the company’s total ownership do my shares represent?
Question 8: Have there been any changes in your Stock Option Plan in the past two years?
Question 9: Is there a minimum period of time, which I have to comply with before selling the shares?

No matter, how easy and safe the Employees stock Option Plan seems, it is very important to consult a professional before investing in them. A legal and binding contract must always be made. It is very important to read and understanding everything that might enlighten you more about the Employees Stock Option Plan. Before taking up a job offer it is advised to know and understand their Stock Option plans, so that you have no problem in the future.

While investing, it is advised not to buy many shares at once, and understand the share market before investing any further.

Monday, 11 September 2017

Thumb rules of Registration of company in India

With over 50 million SMEs, India Inc faces accounts issues regularly. To put things into perspective, there were more than 0.5 million Registration of company done last year itself in India. Registration of company in India is a good indicator of economic development and there is no denying the fact that India happens to be one of the fastest growing economy across globe.
With number of Registration of company in India increasing, it is equally important to understand the process to register a company in India. To register a company in India, the best way is to contact a professional Chartered Accountant or Online Accounting Company and try to understand what kind of company structure would be the best suited for your business need. Typically it takes about 10-15 working days for Registration of Company in India, though the time to register a company differs from state to state
Every entrepreneur should also understand that there is regular need of compliances to be done after registration of company is completed. There is a requirement of Annual Audit and IT filing post Registration of Company is done and there is a cost attached to it.
As per an estimate about 20% of the registered companies do not do any compliances which basically means that there is heavy fines which could be levied on such companies.
As a professional, we advise any entrepreneur to only get the registration of company done if you are actually planning to run the company.
For further support on Company Registration, please go to Company Registration in India

Thursday, 7 September 2017

Dos and Don’ts of choosing the right Accounting Company in Delhi

Basic Principle of any Company, be it a conglomerate or a family run business or be it a funded/non funded start-up or a small business such as Kirana Shop remains the same, to earn profits for all the stakeholder. Stakeholders would include Shareholders, employees and even customers. Many Company, especially the start-ups and family run businesses, makes the cardinal sin of not taking their accounting function seriously and more often than not, they are in dark about how their business is actually performing and what needs to be done to improve their performance.
There is no denying the fact that cost saving is very important in any start-up but hiring right Accounting Company for your business is an investment which will give you great returns. Also, just to think of it, you can hire an Accounting Company in Delhi for your business for as low as Rs 1200/- month (or Rs 40/- per day).
There are few Dos and Donts of hiring the Small Business Accountant, which will be detailed below:
Point No. 1: Always speak to the Accounting Company Representative who would be overseeing your accounting function and clearly define the deliverables every month in terms of MIS etc
Point No. 2: Cost quoted by Accounting Company is also important. Though cost in Metros is always greater than cost in Tier 2 cities for eg. Accounting Company in Delhi would charge atleast 10% more than Accounting Company in Patna
Point No. 3: Specify to the accounting company the requirement of providing account receivables every month. This is especially important for small business accountants.
In nutshell, though it is important for all businesses (especially small business) to hire accounting company but it is equally important to choose the accounting company carefully and define deliverables well in advance.

Monday, 4 September 2017

Government postpones punishment on late GST returns for July

New Delhi: The government, on the proposals of the Goods and Services Tax Council, has deferred the punishment of Rs 200 every day for taxpayers who neglected to record the primary GST returns inside the due date.

The taxpayers will, be that as it may, need to hold up under the enthusiasm on late installment of contribution, the Finance Ministry said on Saturday.

"Late charge for all taxpayers who couldn't document GSTR-3B for month of July has been deferred, yet not the enthusiasm on late installment of duty. Intrigue will be appropriate to all taxpayers who have not released their entire GST risk for July by August 25," Finance Ministry said in a tweet on Saturday.

The taxpayers needed to file the GST returns for July by August 25 and those guaranteeing transitional input tax credit by August 28.

Prior, Finance Minister Arun Jaitley had said that the taxpayers who neglected to meet the due date should bear a punishment of Rs 200 every day - Rs 100 for Central GST and Rs 100 for State GST.

An aggregate of around 5.95 million taxpayers for July ought to have documented the GST returns, however till August 29 just around 3.83 million (or 64.42 for each penny) had agreed, Jaitley had said prior. In this manner, the staying 2.1 million citizens were confronting punishment for late recording.

The Finance Ministry in a circular on Friday evening likewise said that the citizens who may have made mistakes in documenting the primary GST returns could make remedies while recording the GSTR-1 and GSTR-2 frames for the long stretch of July.

Form GSTR-1 reflects offers of a business while GSTR-2 reflects buys.

For July, GSTR-1 should be documented between September 1 and 5 and GSTR-2 between September 6 and 10.

Government postpones punishment on late GST returns for July
The revised information would be auto-populated and reflected in GSTR-3, which is a mix of offers and buys. GSTR-3 for July should be documented between September 11 and 15.

In case there was additional tax liability, the taxpayers ought to present the extra installment with intrigue.

On the off chance that there was diminishment in obligation, the abundance input impose credit would be conveyed forward to the following month`s return and if there was extra information charge credit, extra credit would be made accessible, the round expressed.

"It might be noticed that the circular is quiet on situations where there is abundance installment of GST in real money and whether the same could be conveyed forward to the following return and how," GST master Pritam Mahure told IANS.

Sunday, 3 September 2017

Flipkart has applied for a licence to become a GST Suvidha Provider

Flipkart Internet Pvt Limited, the company that possesses and runs India's leading ecommerce portal. Flipkart, is expanding its paid up capital in an offer to gain a permit to wind up plainly a GST Suvidha Provider.

Flipkart, which has recently recieved about $2.5 billion from SoftBank, has specified in filings with the Registrar of Companies that it expects to wind up plainly a GSP since there are numerous online merchants and dealers who may not be consistent with GST.

Subsequently , the organization has expanded its paid-up to Rs 2 crore from its current Rs 48.43 lakh to wind up plainly qualified for GST Suvidha Provider (GSP) permit. Under existing guidelines , GSP need a base paid up capital of Rs 2 crore.

In its filing to the Registrar of Companies, that was gotten to on business reserch platform Tofler, Flipkart has said that the organization has expanded the paid-up cash-flow to Rs 2 crore to acquire a GSP permit. The organization intends to issue extra offers by issuing 7 new offers for each 2 shares held. The organization, in an executive meeting hung on 24th August 2017, has affirmed to issue extra offers by method for an uncommon determination, the RoC document stated.

Thursday, 31 August 2017


·  Time required for the complete process

·  How much cost one has to bare

·  What is the complete process

Time required for the complete process

The entire process is quite simple now-a-days as the whole process for formation of a private limited company is online and it generally takes near about twenty to thirty days for the entire process for its completion.

In several cities this process takes one week for its completion but in some it takes quite long for the completion of the process.

How much cost one has to bear?

For the registration, it generally takes near about 15000 rupees for its complete registration of the private limited company ( which is just  12900 rupees  at )

What is the complete process? 
There are three simple steps that that private limited company must follow in order to get registered.
~ Memorandum of understanding~ Article of association



The first step towards registration of  Private Limited Company is DIN NUMBER which stand for Director Identification Number for the formation of the private limited company which requires minimum two director to start a private limited company and each director has give their DIN NUMBER.

For the acquisition of a DIN number one must give the following document which is required by the director to get DIN number are:-
·  Copy of a PAN Card of each director
·  Address proof of each director (which could be a copy of a Adhar card , Voter ID, Driving License or pass port)
·  Pass port size photograph of each of the director.
After these thing will be submitted than each director will allotted there DIN number. Than we can say that the first step towards the registration of private limited company is completed.



For the name approval one must have to think about the name of the company before setting up of a company.
The Ministry of Corporate Affair has laid down the certain guidelines regarding the setting up of the company name and ever company has to follow these guidelines for getting approval of the name some of those guidelines are:-
The company name should be divided into two part i.e.
·  Unique Name:- Unique name is the special name which the company has to keen according to their preference
·  Nature of work:- Second name must be that which itself signify the nature of the work
For example:- Madam Matching Private Limited it one of the company first word “madam” is a unique name and “matching” signifies that in this company matching work of the cloths take place.
·  Tata Motor Private limited Company
·  Reliance Communication Private Limited Company.



Before setting up of the company one is aware of the fact that where they want to set up there company i.e. area, locality etc. thus they identify the same. So it will have the address of it which needs to be submitted.
That address is that which is going to be printed on the copy of the certificate of incorporation which will serve as the company headquarters of the particular company.

This address could be yours Home address, any property that you own or any rented property.
In case of rented property one has to submit its rental agreement copy which would be signed at the time of acquiring that property and along with it No objection Letter from the owner of that property which clearly show that the owner has no problem with the trade you are carrying out.

If the property that you have purchase than too you have to give your electricity bill of the owner of the property and no objection letter of the owner. In certain cities they ask for the property document such sale deed etc.

Along with this registered address proof one has to submit two more things i.e. MoU and AoA. MoU stand for memorandum of understanding is a formal agreement between two or more parties. Companies can establish this formal relation between the directors of the company. AoA stand for a company’s articles of association is a document which, along with the memorandum of association defines the responsibilities of the directors, tells the kind of business they will continue, and the means by which the shareholders exert control over the board of directors. They basically tell the purpose for which the company has been established.

What wiki cant tell you about the company ?


A company is a kind of business structure or a business organization. The company has been evolved from sole proprietorship business structure to partnership type of business and after that the company type of business structure came up.
In case of companies money can be raised from many people all over the world in the form of capital to the company. In company the capital that we can raise is unlimited and in company each member liability is limited to the share invested.
A company is an artificial person, created by legal incorporation having separate legal entity, perpetual succession and common seal that represent the company as a whole as a person itself.
A company is the voluntary association of the person and must be incorporated under companies Act 1956 or companies Act 2013.



·  Charter Company
·  Statutory Company
·  Registered Company


·  Unlimited Liability Companies


·  Private Company
·  Public Company

Private company is owned by a private individual to run the company and in private company which has minimum membership of 2 people and maximum member of 200 people (Sec 68 sub clause (ii)). According to section 68 of Companies Act 2013 Minimum paid up capital is 1 lakh to start the company.
There is restriction on transfer of share which means if 20 people who have formed the private company these members can be the member only and cannot transfer their ownership without the consent of all the members. In private company word ltd (limited) is essential to be used.

Tuesday, 29 August 2017

How Online Accounting Services Can Help You Improve Your Small Business

Accounting can be quite dull, if one is not especially interested in it. We all would much rather focus our attention on things that we find more interesting. For everyone who is not managing their own business, this attitude towards accounting is completely OK. But in case you are a small business owner, you and your business would need to focus on small business accounting.

The best thing that you can do is that you could leave it to the experts. We understand that hiring online accounting service could be difficult, as you have already made tonnes of expenses which is why hiring an accounting services would not be on top of your list. Even when you do outsource, you need to understand the scope of your accounting. Simply because when you would understand your department and its working, you would be able to monitor it in a much better way. Whatever you do, you should have an eye on your books of accounts and you should know exactly what your firm is doing.
If you have basic knowledge of accounting, you would be able to determine your business financial health just by looking at the profit and loss account or the balance sheet. It would help you take proper business decisions. You can even work in order to maintain the financial concerns before they become critical.
There are many Online Accounting Services who would help you take informed decisions about your business, which will help you take financial as well as business decisions based on solid accounting fundamentals. For example, if you consider your cost of manufacturing the product, just add the profit that you expect and place it as an MRP, it could be a disaster. There are many liabilities and expenses that you need to take into consideration to come to a correct price. Various Accounting companies helps you keep a track of all your liabilities, expenses, incomes and assets in order to help you take the best business decisions. The constant research on the trends would also help you make adjustments in your business processes in order to increase the cash flow and improve the profitability.
Showcasing Your Business Potential With The Help Of Reliable Online Accounting Services If you ever need outside investment from Bank or Venture Capitalists, Accounting Services provider would help you in this regard. Your error free and up to date accounting would help you gain better access to funds.
Another important factor that online accounting services can help you with is your payroll processing, Payroll has much more nuances than just paying the employee a certain amount on a certain date. Payroll includes the taxes, benefits as well as the liability calculation. Proper accounting would also help you identify bottlenecks in your business and help you ensure a proficient management of your business without any wastages.
Due to all these reasons, a small scale firm would be much better off by hiring an outsourcing provider.
Confused about choosing online accounting services Firms for your business? I will help, with us you can save your expenses & time too, Real help is waiting for you at

Main Features Of GST ACT

  • GST to be levied on supply of goods or services
  •  All transactions and processes only through  electronic mode – Non-intrusive administration  
  • PAN Based Registration
  •   Registration only if turnover more than Rs. 20 lac
  •   Option of Voluntary Registration
  •  Deemed Registration in three days  Input Tax Credit available on taxes paid on all procurements (except few specified items)
  •  Credit available to recipient only if invoice is matched – Helps fight huge evasion of taxes
  •   Set of auto-populated Monthly returns and Annualq Return
  •   Composition taxpayers to file Quarterly returns
  •   Automatic generation of returns
  •   GST Practitioners for assisting filing of returns
  •   GSTN and GST Suvidha Providers (GSPs) to provideq technology based assistance
  •  Separate electronic ledgers for cash and credit  
  • Tax can be deposited by internet banking, NEFT / RTGS, Debit/ credit card and over the counter  
  • Cross utilization of IGST Credit first as IGST and then as CGST or SGST /UTGST
  •  Concept of TDS for Government Departments  Concept of TCS for E-Commerce Companies
  •  Refund to be granted within 60 days
  •   Provisional release of 90% refund to exporters with
  •  Interest payable if refund not sanctioned in time
  • Refund to be directly credited to bank accounts
  •   Comprehensive transitional provisions for smooth transition of existing tax payers to GST regime  Special procedures for job work

Saturday, 26 August 2017

New Company Registration in India

If New Company Registration is any indication, India growth story is far from over, as some of the naysayers would like to believe. BRICS nation comprising on India, China, Brazil, Russia and South Africa were seen as the future engines of world economy. Brazil, Russia and SA were derailed to an extent and now even China is seeing a slowdown in the economy. India, with all it’s problem notwithstanding, has been the only constant performer and is still seen as a country which has strong fundamentals and ample growth opportunity. If number of people who have done New Company Registration is any indication, India growth story will continue to boom. We discuss below 7 points which reinforces our belief in India Growth Story:

New Firm Registration number grew exponentially in last quarter and the number of SME as per some estimate is over 80 millions. This definitely is no sign of slowing down.

Indian economy has grown with 7.5%+ rate and is slated to grow so. Gurgaon, which is the story of India’s growth, has seen a sharp rise in New Company Registration in Gurgaon

Apart from New CompanyRegistration, India has seen over thousands of foreign fund houses setting up shop in India

All the big daddies of e-commerce are queuing up to set shop in India. Online Business Registration in India has seen a stupendous growth and is slated to grow over 10% YoY

Private Limited CompanyIncorporation and Company Formation in India has shown a high increase in the profits posted. This definitely shows that India is a land of opportunity.

Digital India, Make in India, Start Up India campaign has infused India Inc with a renewed vigor. Infact the Pvt Ltd Company Registration Online has broken all previous records.

Company Registration in Gurgaon, the IT and BPO hub of India is now the city (Delhi-NCR) which has highest GDP in India. The GDP of Delhi-NCR is more than many a countries!!!

Accounting consultant in Delhi-NCR

Accounting is a serious job. Anaccounting consultant can save lot of money for their clients through Tax Advisory, can help raise money through proper accounting and due diligence compliance and keep their client safe by proper regulatory compliance.

There are various accounting firms in Delhi and hundreds of accounting consultants in Delhi but it is important to know how to make best use of the immense knowledge an accounting consultant possess.

Tax Optimization: 
An accounting consultant helps a client to optimize their taxes properly and in the process saves a lot of money for their clients. There are various ways to optimize your tax like booking the expense, taking credit on GST etc. etc. In a survey, it has been found that a company can save up to 5% of their operations tax with correct advice from accounting consultants.

Fund Raising:
 Correct accounting practices and proper due diligence is a pre-requisite for raising any form of funds, be it equity or debt. One of the major way an accounting consultant can help you is to ensure that you are always covered on this front.

Regulatory Compliances: 
Accountancy firms helps a company to always ensure that they are compliant and there is no chance of any unwanted notice from any government department.

Hence it makes sense for owners/founders/managers to opt for best accountant firms and use their accounting consultant proactively to grow the business.

Friday, 25 August 2017

Accounting company in Delhi-NCR

Accounting is mainstay of any business. Apart from the mandatory government compliances, accounts helps the founders/owners/managers of the business to understand the direction in which company is going, issues with accounts receivable, financial health etc. etc.

Hence it is paramount to have the best accounting company looking after your finances. Next question which arise is how to select the right accounting company for your business. Choosing an accounting company is not an easy job and there hundreds of accounting companies in Delhi alone. ‘One size fits all’ principle does not apply with accounting company and every business has different requirement and should select the right accounting company for them.

For start-ups with less than 1 million of Revenue or less than 200 transactions a month::

Such start-ups should maintain their accounts on their own in excel, keep tab on all the bills received and try to spend maximum through Bank Accounts. It is also mandatory to get the Audit done by year end from an Accounting Company. Also, they should speak to CA once every month to understand if there has been any changes in the regulation.

For companies with 1 million-5 million of Revenue or doing 200-1000 transactions a month::

Such companies should have an accountant company visit their office once a month, and do all the accounting inappropriate software. They have to do various tax registrations as well as deposit taxes. Such company should opt for accounting company which is in their city (like for someone in NCR, they should go for accounting company in Delhior NCR).

For companies with 5 million-50 million of Revenue or doing 1000-10000 transactions a month::

Such companies should have an in house accountant (fresher or with less than 2 years of experience) and the accountant should be supervised by professional from accounting company. These companies should look/opt for accounting company whose CA can give personalized service as the business is growing and regulations would matter for such companies

For companies with over 50 million of Revenue or doing more than 10000 transactions a month::

Such companies should have at least a team of 2-3 people in accounts department (with a senior accountant heading the team) and a professional from accounting company having quarterly audit and directly reporting to the owner.

Thursday, 17 August 2017

Accounting Services for Start-Ups and SME in Delhi

Accounting is one of the major challenges for any Small Business or Start-Ups. For any business, whether it is a a multi dollar MNC in Manhattan or a bootstrapped e-commerce venture in Gurgaon, the basic principle remains the same viz,
1- Increase Revenue
2- Optimize Cost
3- Focus on expansion (geographically or otherwise)
And the problem faced by founders, promoters and Top executives also remains the same, They lose the sight of above mentioned cardinal principle. It has been observed and ratified by various experts across globe is that founders/executives do not normally pay attention to planned budget and monitor them regularly leading to such issues.
Best habits are inculcated young and we very strongly advice to all entrepreneurs is to focus on their accounting and book-keeping right from Day 1 and keep an eye on the various parameters on monthly basis (if not weekly).
Some of the key parameters they should have an eye on are mentioned below:
Revenue: Revenue is the ‘actual’ amount which hits your accounts. (Even if you are bitten by GMV bug, an eye on ‘actual’ revenue is an absolute must)
Cost of Operations: This will include Salary, office Rent, Electricity, Admin cost etc etc.
Cost of Marketing: You can consider including salary of marketing employees of you have dedicated marketing employees
Accounts Receivable: A lot of ‘profitable’ businesses have gone bust just because their account receivable management was poor. Please remember that money which sits in your bank is ‘real’ money
Cash in the account: If your bank account shows cash of less than 10 months(bare minimum) amount of cash equivalents of the amount you need to run the operations at same level, it is time to panic. So increase your revenue, optimize your cost or start looking for funds (And Pray Hard!!!)
Regular Accounting and Book Keeping helps companies to ensure that all government compliances Like TDS Returns, GST Returns are complied with (Another advantage of regular accounting and Book-keeping services is that helps to manage Tax more efficiently. Just to enumerate few points:
1- TDS deducted by clients are accounted properly
2- GST Credit is utilized properly
3- All the expenses are properly accounted (Petrol Bills to Mobile Bills to Restaurant Bills could be booked as expense)
If your business is small in size (Revenue of less than 5 Lacs per month or Less than 300 Transactions per month), you can easily manage accounting and Book-keeping in-house. But beyond that it is strongly advisable to take a professional help. There are various professionals who provides accounting service in Gurgaon or in Delhi.
To choose accounting service consultants, following points should be kept in mind
1Experience of service provider
2- Location (for eg. It is better to have a Delhi accountant for company in Delhi and Gurgaon accountant for company in Gurgaon)
3- Cost
Accounting Services in Delhi or Gurgaon starts from Rs. 1,200/- per month.