Accounting & Book Keeping

Bookkeeping is the recording, storing and retrieving of the financial transactions of the business on daily basis and it is part of the process of accounting in business. It includes all the transactions, operations and other financial activities of the organization. Transactions include sales and purchases, Receipts and payments by individuals and corporate.

Important tasks of bookkeeping

• Invoicing for goods sold and services provided to the customers
• Recording receipts and payments
• Paying and receiving to or from suppliers
• Processing employees’ pay and other transactions
• Recording depreciation and other entries
• Preparation of financial reports

Accounting

Accounting means the recording of financial transactions of a business. These transactions are classified, recorded and summed up to give useful information. Thus, the accounting process starts with the recording of business transactions in financial terms, in the primary books of accounts. For the recording of financial transactions, it is important that these transactions are evidenced by specified source documents such as cash memos, sales bills, purchase bills, receipts of cheque issued, salary slips and etc.

• Maximized Deductions: If you don't record an expense, you can’t deduct it. Proper bookkeeping ensures you keep more of your hard-earned money.
• Audit Protection: If the tax authorities ever come knocking, having organized, professional records are your best line of defense.
• Compliance: Ensures you meet all legal requirements for sales tax, payroll tax, and income tax.

• Banks and investors require financial statements. Proper accounting increases credibility and improves chances of getting funding.
• Scalability and internal control: Standardized accounting systems and processes support growth to multi branch or multi state operations while maintaining control and reducing fraud risk.

• Organized bookkeeping reduces manual mistakes and simplifies audits and reporting.

• Data-driven decisions are always safer than "gut feelings."
• Budgeting: You can create a realistic budget for the future based on historical data.
• Resource Allocation: Identify which products or services are your "cash cows" and which ones are draining your bank account.
• Expansion Planning: Want to hire a new employee or open a second location? Your financial statements will tell you if you can actually afford it.

• Identify Transactions: Gathering the "source documents"—receipts, bank statements, invoices, and credit card slips.
• Journalize: Entering these transactions into a Journal (often digital software) in chronological order.
• Post to the General Ledger: Moving those journal entries into specific categories (Accounts). For example, a $50 gas receipt moves from the general journal to the "Travel Expenses" account.

• Keep invoices, bills, purchase orders, receipts, bank statements, salary sheets, tax challans, etc.
• Number and file them date wise (physically or in software) for easy tracing.

• Transfer journal entries to individual ledger accounts (customer ledgers, vendor ledgers, expense heads, GST ledgers, TDS ledgers, etc.).
• Each account then shows total movement and balance for the period.

• Profit & Loss Account (income and expenses, net profit/loss)
• Balance Sheet (assets, liabilities, capital)
• Cash Flow Statement (for larger entities).
• Use these for management review, tax filing, loan applications, etc.

• Unadjusted Trial Balance: A quick check to make sure your total "Debits" equal your total "Credits." If the numbers don't match here, there's a typo somewhere in the bookkeeping.
• Adjusting Entries: This is where an accountant adds "hidden" costs that don't always have a single receipt, such as depreciation (the loss of value in equipment over time) or accrued interest.
• Adjusted Trial Balance: A final check after those adjustments are made to ensure everything still balances.
• Financial Statements: This is the "Grand Finale." The data is transformed into the three core reports:
• Income Statement (Profit/Loss)
• Balance Sheet (Assets/Liabilities)
• Cash Flow Statement (Liquid cash movement)
• Closing the Books: At the end of the month or year, the "temporary" accounts (like revenue and expenses) are reset to zero so you can start fresh for the next period.

• Customer Invoices: Copies of all bills sent to clients.
• Sales Receipts: Records from your POS (Point of Sale) system or cash register.
• Deposit Slips: Proof of cash or checks physically deposited into the bank.
• Business registration and identity: PAN, GST registration, MSME/Udyam, Shop & Establishment, incorporation documents (MOA, AOA, partnership deed, LLP agreement, etc.)
• Licences and certifications: FSSAI, pollution board, drug/cosmetic licences, BIS, or any other sectoral licence relevant to your unit.
• GST invoices and returns related to Goods and Services Tax (GST) 
• TDS certificates (Form 16, 16A) 
•  Previous Income Tax Returns

• Updated Company Books