Book-keeping means the activity of keeping records of the financial affairs of a business. Proper accounting records are the stepping stones for every venture. It helps the owner, the management and those charged with governance to know the overall profitability and the cash flows of the enterprise and thus take timely action to mitigate the probable future losses. Also, non-maintenance of proper books of accounts highly increases the risk of fraud in the enterprise, thus causing heavy losses to the stakeholders.
Further, as per the provisions of Income Tax Act, 1961, it becomes mandatory to maintain books of accounts if any of the following 2 conditions get satisfied:
However, all Companies and LLPs shall mandatorily need to maintain books of accounts.
Proper book-keeping ensures proper payment of taxes and other statutory dues to the Government.
Collection of information/ documents
Review of the information/ documents
Feeding the vouchers and other receipts and payments in the accounting software
Preparation of the Balance Sheet and the P&L Account for the client’s review.
– Yes. It is mandatory as well as highly recommended to maintain the proper books of accounts in order to have proper control over the operations of the Organisation.
– No. All forms of business shall need to maintain the books of accounts in to expand the business operations.
– Sales book, Purchase book, Cash Book and Bank Book. Apart from these, debtors and creditor records, and other balance receivable and payable records shall also need to be maintained by the organization.
– The books of accounts shall be maintained with the help of accounting software and such data shall be kept 100% confidential.
– You should maintain the proper books of account and other accounting records from the very beginning, in order to minimize the risk and ensuring proper governance practices./p>
– No. It is not mandatory to be physically present in the premises of the place of business to maintain the books of accounts. You may courier the accounting records, basis which we shall maintain the accounting records.