Maintain your Accounts

Why Accounting is important for business? Benefits

An effective accounting system in place helps startups and established companies in:

Planning budget:

Budgeting helps organizations in effectively controlling the income and expenditure of the company while monitoring the managerial policies and goals of the business. It provides a disciplined approach to developing strategies; directing capital and other resources into profitable channels.

Evaluating the performance of the business:

Accounting system acts as a yardstick in measuring the performance of the business with respect to key metrics like net profit, sales growth,

Managing cash flow:

Regular tracking of the money that comes into the business helps in predicting the trends, paying to staff and suppliers, covering debts, etc.

Presenting information to investors and stakeholders:

While approaching potential investors, creditors, banks or borrowers, the financial statements and other reports serve as financial scorecards of the company. Investors will get a better sense of the financial health of the business which includes the net worth, debts, savings, amount spent on fixed expenses. In addition, they will get to know the solvency, creditworthiness, liquidy, stocks and bond issuers of the business.

Mandatory by law:

In India, as the Registrar of Companies demands a strict record of income tax payments at the end of the year, without maintaining accounts companies may end up paying tax in excess.

How we help in Accounting - Why Vakilsearch

With the ever-changing business landscape, Vakilsearch’s certified auditors and accounting professionals, and payroll specialists assist in a broad spectrum of financial services that cover:

Basic financial consultation:

We have expert chartered accountants and financial professionals who offer basic financial consultation that your company needs.

Bookkeeping:

Bookkeeping is a process of recording financial transactions and information on a daily basis. These may include payments made to suppliers, loan payments, customer invoice payments, monitoring asset depreciation and generating financial reports.

Preparation of accurate annual financial statements and monthly reports:

One of the major concerns of creditors and investors is a company’s financial health. Financial statements serve as a source for a company’s investor to gauge the profitability and safety for their investment.

Financial statements, which include balance sheet, income statement and cash flow statement give insights into the company’s financial position, an overview of assets and liabilities, stockholders’ equity. It also helps understand the company’s revenues and expenditure, how the company pays its debts and how it meets its expenses for operations.

Assistance in designing invoices:

Invoices are records of sale transactions that a company makes. They contain the details of the shipment like the number of items, item description, total sale price and selling price per item, terms of the sale, buyer’s and seller’s information, amount due, invoice number, method of payment and the payment due date. Invoices establish the legal rights wherein if the customer fails to make the due payment, the company can take it forward legally.

Basic taxation advisory:

At Vakilsearch, our taxation experts offer the best-in-class tax planning strategies that are suitable for your business structure. We understand the changing tax regimes in India and offer timely information.

Advance payment of income tax every quarter:

Filing of IT returns:

Cloud-based accounting software license: We provide Zoho online accounting software that helps in staying compliant with GST and managing your finances and business workflows. With the software, you can take complete control of the end-to-end accounting system, create GST invoices, filing of tax returns, update expense receipts, create purchase orders, track your inventory and more. Right from profit and loss statements, GST reports to inventory reports Zoho lets you generate more than 500 reports. It also lets you customize reports and filter the data for better insights.

Net worth Certificate