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Accounting is the systematic process of recording and summarizing financial transactions and then analyzing and reporting the results. It is crucial for every business irrespective of its size, to maintain clear accounting records as per the Income Tax Department reforms. Often entrepreneurs with startups neglect the maintenance of their accounts, which later causes complications. Government organizations must be kept updated on your finances when required, or it might result in heavy penalties.
Evaluating the Company’s Performance: The calculation of net profit, sales growth, and other metrics assists the business in knowing its performance and gives them an idea about its progress in achieving its goals.
Providing details to Investors and Stakeholders: Clear accounts help in gaining investors’ trust by providing them information on the company’s solvency, creditworthiness, liquidity, stock, and bond issuers.
Budgeting: It will take you nowhere without a budgeting method. Knowing your financial position will assist organizations in efficiently controlling the company’s income and expenditure without sacrificing managerial policies and goals.
Managing Cash Flow: It is crucial to keep track of the income of the company and what’s the inflow and outflow of company funds to pay salaries to employees, make payments to suppliers, repay debts, etc.
Mandatory by law: In India, companies must maintain income tax records at the end of every year as per the Registrar of Companies; failing that might result in fines and penalties.
Having meetings of the board of directors:
It is essential to facilitate four meetings every quarter in a calendar year. The first meeting of the board of directors must be arranged within the first 30 days from the day of incorporation.
The minutes of the meeting proceeding must be arranged:
All of the companies must file their minutes of the meetings, and they shall be preserved as they can provide to be applicable under disputes. The meeting minutes must be stored and held at the registered office.
Issuance of share certificates:
A share certificate must be issued to the subscribers of the memorandum within 60 days of incorporation of the company.
Disqualification declarations and disclosure of directors’ interests:
The first meeting must have a discussion on all of the director’s views about other companies and if they have any intention of joining them.
Making a declaration of commencement of business with the RoC:
Form INC 20A is needed to be filed within 180 days of incorporation once the company gets registered.
Facilitation of annual general meetings:
Conducting AGMs is mandatory compliance for all companies. The first AGM shall take place within nine months of the end of the company’s first financial year, and the subsequent AGMs shall occur within six months of the end of the following financial year.
After the AGM, company returns must be filed with the RoC within 60 days.
Mandatory registrations:
All mandatory registrations for the company like GST, PF, ESI, IEC, etc. must be completed
A better accounting practice allows you to analyze complex financial data, generate reports that include closing records for quarters and years, monitor and check taxation concerns, etc.
Yes, it is mandatory to do compliance filing for every company even if there are zero transactions, and it will just make the process quick and easy.
The AGM can be arranged at the registered office premise of the company or anywhere in the city or town where the company’s registered office is situated. The meeting should commence between 9 am – 6 pm, the business hours window, and should be held any day of the week except a national holiday according to the central government’s calendar.
Accounting statements provide a comprehensive overview of your company’s financial health, helping you understand profits, losses, and make informed decisions.
Our team of Chartered Accountants at Eazy Startups ensures accurate and transparent accounting statements, keeping you compliant and informed about your financial standing.
Accounting statements encompass details on funds, assets, liabilities, profits, and losses, giving you a holistic view of your company’s financial position.
Regularly updated accounting statements allow you to track financial progress, understand costs, and align your business strategies with organizational goals.
Yes, our team specializes in preparing comprehensive year-end financial reports to facilitate a clear understanding of your company’s financial performance.
We recommend updating your accounting statements regularly, ideally monthly, to ensure real-time insights into your financial situation.
Accurate accounting statements provide insights for better decision-making, attract investors, and help in regulatory compliance, ensuring a healthy financial state for your business.
Without effective accounting, understanding operational costs becomes challenging, hindering strategic planning and potentially leading to financial mismanagement.
Absolutely, our Chartered Accountants can assist in creating budgets aligned with your accounting statements to enhance financial planning and control.
Stakeholders gain confidence in the business’s financial stability, fostering trust and providing a clear picture of the company’s performance against goals.
Eazy Startups caters to businesses of all sizes, from startups to established enterprises, offering tailored accounting solutions to meet specific needs.
Yes, our expert team can assist in tax planning based on accurate accounting statements, maximizing savings and ensuring compliance.
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