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.

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