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Dear All,
Can you please make me aware about the kind of accounts to be maintained by a start up company.
we are software company with 10 employees as head count. I am not really aware of maintaining accounts.Any help would be greatly appreciated.
Also please help with the tax and do we have to approach Auditor, what questions should i ask the auditor.
Regards,
Saujanya
From India , Guntur
Can you please make me aware about the kind of accounts to be maintained by a start up company.
we are software company with 10 employees as head count. I am not really aware of maintaining accounts.Any help would be greatly appreciated.
Also please help with the tax and do we have to approach Auditor, what questions should i ask the auditor.
Regards,
Saujanya
From India , Guntur
Hi Saujanya,
First of all your company should appoint 1 auditor. Meanwhile auditor will suggest for tax planning, payroll & all financial avenues.
In addition to that you have to recruit 1 accountant who can take care of all company accounts.
Regards,
Sarita
From India , Hyderabad
First of all your company should appoint 1 auditor. Meanwhile auditor will suggest for tax planning, payroll & all financial avenues.
In addition to that you have to recruit 1 accountant who can take care of all company accounts.
Regards,
Sarita
From India , Hyderabad
Dear All,
soon i will be joining a logistics(freight forwarding ) company in Muscat. i have to handle accounts and operations of the co. could somebody guide me by providing some materials details on how the process, works how the accounts has to be mentioned and so. let me have it in the Indian context if there is no foreign accounting materials. pls do help me out.
my email:
I would be very grateful to you....
PRADEEP PALAN
From India , Mangaluru
soon i will be joining a logistics(freight forwarding ) company in Muscat. i have to handle accounts and operations of the co. could somebody guide me by providing some materials details on how the process, works how the accounts has to be mentioned and so. let me have it in the Indian context if there is no foreign accounting materials. pls do help me out.
my email:
I would be very grateful to you....
PRADEEP PALAN
From India , Mangaluru
Hi Saujanya,
We are also a IT consulting startup with less than 10 employees. You can get in touch with me at
and we can have a teletalk accordingly to guide you.
Rgds,
Kapil Bankeraika
From India, Mumbai
We are also a IT consulting startup with less than 10 employees. You can get in touch with me at
Rgds,
Kapil Bankeraika
From India, Mumbai
Books of accounts including vouchers and receipts are required to be maintained under different statutory laws Income Tax Act, Companies Act 2013 and GST Act. Books to be maintained, retention period and compulsion requirements are different under all the 3 laws.
Under Income Tax Act
If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained.
Following professions are covered under this provision
Legal
Medical
Engineering
Architectural
Accountancy
Technical consultancy
Interior decoration
Authorised Representative (one who charges fees for representing someone before tribunal or any authority)
Film artist (producer, editor, actor, director, music director, art director, dance director, cameraman, singer, lyricist, story writer, screenplay or dialogue writer and costume designers.
Company secretary
Thus, if the above-mentioned professions have an income of more than Rs. 2,50,000 in any of the 3 preceding years, they need to maintain books of accounts. In case of a new profession also, if the income is expected to be more than Rs. 2,50,000, the professionals should maintain books.
Books of accounts as per Rule 6F
Cash Book
Journal
Ledgers
Copies of bills or receipts
Daily cash register with details of patients, services rendered, fees received and date of receipt (persons carrying on medical profession)
Details of stock of drugs, medicines, and other consumables used (persons carrying on medical profession)
If the income isnt more than Rs. 2,50,000 in any of the 3 preceding years or not expected to be more than Rs. 2,50,000 in case of a new profession, then also books should be maintained. However, books, in this case, havent been specified so any books can be maintained but it should be such that ATO can calculate the income.
For how long should the books be maintained?
Books should be maintained for a period of 6 years from the end of the relevant year.
Under Companies Act
Every company has to maintain books of accounts, at the registered office or any office that board of directors may decide. If the company is maintaining books at an office other than the registered office, it has to intimate the same to RoC. The company can maintain the accounts electronically also.
For how long should the books be maintained?
Books should be maintained for a period of 8 years from the end of the relevant financial year.
Books of accounts to be maintained
Cash flow statement
Records of sales and purchases,
Records of assets and liabilities
Items of cost
Deeds, vouchers, writing, documents, minutes, and registers whether in physical or electronic mode
Under GST Act
Every registered person has to maintain GST records at the principal place of business.
Records to be maintained
Production or manufacture of goods
Inward and outward supply of goods or services or both
Stock of goods
Input tax credit availed
Output tax payable and paid and
Other particulars as may be prescribed
For how long should the records be maintained?
Books and records should be maintained for 6 years from the last date of filing of the annual return (31st December) for that year.
From India,
Under Income Tax Act
If the sale/turnover/gross receipts from the business or profession is more than Rs. 25,00,000 or the income from business or profession is more than Rs. 2,50,000 in any of the 3 preceding years, then books of accounts will be compulsorily maintained.
Following professions are covered under this provision
Legal
Medical
Engineering
Architectural
Accountancy
Technical consultancy
Interior decoration
Authorised Representative (one who charges fees for representing someone before tribunal or any authority)
Film artist (producer, editor, actor, director, music director, art director, dance director, cameraman, singer, lyricist, story writer, screenplay or dialogue writer and costume designers.
Company secretary
Thus, if the above-mentioned professions have an income of more than Rs. 2,50,000 in any of the 3 preceding years, they need to maintain books of accounts. In case of a new profession also, if the income is expected to be more than Rs. 2,50,000, the professionals should maintain books.
Books of accounts as per Rule 6F
Cash Book
Journal
Ledgers
Copies of bills or receipts
Daily cash register with details of patients, services rendered, fees received and date of receipt (persons carrying on medical profession)
Details of stock of drugs, medicines, and other consumables used (persons carrying on medical profession)
If the income isnt more than Rs. 2,50,000 in any of the 3 preceding years or not expected to be more than Rs. 2,50,000 in case of a new profession, then also books should be maintained. However, books, in this case, havent been specified so any books can be maintained but it should be such that ATO can calculate the income.
For how long should the books be maintained?
Books should be maintained for a period of 6 years from the end of the relevant year.
Under Companies Act
Every company has to maintain books of accounts, at the registered office or any office that board of directors may decide. If the company is maintaining books at an office other than the registered office, it has to intimate the same to RoC. The company can maintain the accounts electronically also.
For how long should the books be maintained?
Books should be maintained for a period of 8 years from the end of the relevant financial year.
Books of accounts to be maintained
Cash flow statement
Records of sales and purchases,
Records of assets and liabilities
Items of cost
Deeds, vouchers, writing, documents, minutes, and registers whether in physical or electronic mode
Under GST Act
Every registered person has to maintain GST records at the principal place of business.
Records to be maintained
Production or manufacture of goods
Inward and outward supply of goods or services or both
Stock of goods
Input tax credit availed
Output tax payable and paid and
Other particulars as may be prescribed
For how long should the records be maintained?
Books and records should be maintained for 6 years from the last date of filing of the annual return (31st December) for that year.
From India,
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Accounts.pdf
