Accounting is the systematic process of recording, analysing, and interpreting the financial transactions. It is the responsibility of every business – whether large or small to furnish their accounting records to the Income Tax Department. Generally, startups neglect these issues and, after a few years, they are forced to deal with them, plus interest. It's always a good idea to keep track of your finances and provide information to government organisations to avoid difficulties like raids and fines. Companies are required to update the annual returns regularly.
Benefits of Accounting & Business Compliances to a Business
Budgeting: It assists organisations in efficiently controlling the company's income and expenditure while monitoring managerial policies and goals. Evaluating the Business's Performance: Helps in measuring the performance of the business in terms of key measures such as net profit, sales growth, and so on. Managing Cash Flow: Keeping track of the money that comes into the business on a regular basis helps in projecting patterns, paying employees and suppliers, repaying debts, etc. Financial Information to Investors and Stakeholders: Investors will gain a better understanding of the business's financial health, including its solvency, creditworthiness, liquidity, stock, and bond issuers. Mandatory by law: In India, the Registrar of Companies requires a strict record of income tax payments at the end of the year, failing which companies may face additional taxes or fines.
The documents required will vary depending on the service you require. Our professionals will convey the same to you based on your requirements.
Process of Filing Annual Compliance
The mandatory compliances that most businesses must meet are as follows. At Vakilsearch, our qualified chartered accountants, accounting and taxation professionals, and company secretaries will handle all of your compliance needs. We offer the best-in-class legal consultation for your company. Our team will cover the following compliance requirements as mandated by the Ministry of Corporate Affairs.
The first meeting has to be conducted within 30 days of incorporating a business after which four meetings shall be held every quarter in a calendar year. There should not be more than 120 days between two consecutive meetings.
Every company needs to file its minutes of the meetings and they shall be preserved permanently to add value in case of any dispute. The meeting minutes are to be maintained at the registered office.
The company is required to issue a share certificate to the subscribers of the memorandum within 60 days of incorporation.
In the first board meeting, all the directors are required to make disclosures about their interests in other business entities.
This has to be done upon registration of the company. Form INC 20A mandatorily needs to be filed within 180 days of incorporation
A company shall conduct at least one AGM each year. The first AGM shall be held within nine months from the closing of the first financial year of the company. In other cases, it shall be within six months from the closing of the financial year.
Every company has to hold a minimum of four meetings of its board of directors, that is, at least one board meeting every quarter of the calendar year.
All statutory registrations like GST, PF, ESI, IEC, etc. must be completed.
How does Arvisa help?
As a benefit of working with industry specialists, our team will keep track of all changes to the various relevant regulations and keep you up to date and compliant. Our accounting and compliance team will collaborate closely with you to identify all needs and ensure that the procedure is completed on time. Our experts will assist you 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. The account bookkeeping services 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. The balance sheet, income statement, and cash flow statement provide information on the company's financial position, including an overview of assets and liabilities, as well as stockholders' equity. It also helps in understanding the company's earnings and expenditures, as well as how the company pays its obligations and meets its operating expenses. Assistance in designing invoices: Invoices are records of a company's sales transactions. They include information on the shipment, such as the quantity of items, item descriptions, total sale price and selling price per item, terms of sale, buyer and seller information, amount due, invoice number, payment method, and 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. Cloud-based accounting software license: We utilise Zoho online accounting software that helps in staying compliant with GST and managing your finances and business workflows. Our accounting services are offered on the cloud, which means that you'll have 24x7 access to your accounts and can be sure of confidentiality.