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  Accounting is nothing but a systematic and detailed record of the financial transactions of a business. It gives you a complete overview of your business and helps you with the necessary steps that need to be taken for a positive outlook of your business. Accounting comes in different types as well. It plays a very important role in the business as it helps to track the income and expenditure of a firm and also help in major decision making. The importance of accounting services in a business Accounting is nothing but a systematic and detailed record of the financial transactions of a business. It gives you a complete overview of your business and helps you with the necessary steps that need to be taken for a positive outlook of your business. Accounting comes in different types as well. It plays a very important role in the business as it helps to track the income and expenditure of a firm and also help in major decision making. There are three key statements that are generated Inco

  What to Include in a Consulting Agreement This blog talks about a few details that need to be mentioned in a consultancy agreement. Here is the list of the details. Term The starting and commencing of the agreement should be mentioned. Situations under which the agreement can be terminated and also the notice period will be mentioned Compensation The compensation that the client is entitled to will be mentioned in the agreement. The day on which the compensation will be paid is also mentioned. Confidentiality The consultant promises not to disclose any of the client's information to any third party The consultant cannot make copies of any confidential information or any content that is based on the confidentiality of the client. Usage of confidential information for the sole purpose of the benefit of the client. Non-competition The consultant will not engage directly or indirectly in any competition with the client or any of its subsidiaries. Non-solicitation During the term or m

  How to raise funds for a company When you start a business, you must also ensure that you have the proper funding option available. According to a recent study, most businesses fail due to a lack of funds. Raising funds for a new company involves various risks factors also. Fundraising  is nothing but seeking financial support to start a business or any charitable organization. Here are a few funding ideas that will be useful for your company. Crowdfunding Crowdfunding is one of the funding options available for a start-up that has been gaining a lot of popularity lately. Crowdfunding is nothing but taking a loan, pre-order, contribution, or investments from more than one single person at the same time. Detailed information of the business is put up on the  crowdfunding  platform. The company needs to mention the goals of their business, plans for making a profit, how much funds they require, etc. Customers will have access to all such information and fund the business if they seem t

Advance Tax Payment Who is liable to pay the Advance Tax? A taxpayer whose total estate tax liability exceeds Rs 10000 after TDS and TCS is liable to pay the Advance Tax. Who is not liable to pay the Advance Tax? A resident who is 60 years of age or senior citizen at the time during the financial year, who is not having any income from business or profession is not liable to pay advance tax. How to calculate Advance Tax? Income under 5 heads of income                                                                      XXX –Brought forward losses and allowances                                                          XXX =Gross Total Income                                                                                          XXX –Chapter VI-A Deductions                                                                                XXX =Estimated Total Income                                                                                   XXX Income tax on estimated total income   

  Microfinance services are basically for individuals who do not have enough access to banking and other related services. The privilege of micro financing is given to unemployed and individuals who draw a low income. Microfinance companies can provide a loan or credit of up to Rs 50,000 in rural areas and Rs. 1,25,000 for urban areas. Such loans are given to small time entrepreneurs, enterprises and low income group. Here is a list of documents required to register a Micro finance company Copy of PAN card of directors and shareholders Copy of Aadhar card for directors and shareholders Bank statement, electricity bill or telephone bill as address proof Passport size photo Registered office proof In case of a self-owned property, electricity bill and ownership document is required In case of rented property, electricity bill, rent agreement and NOC from the owner should be obtained. Conclusion As India is a fast growing economy having a large population, it is difficult to open banks in

  What are the different types of Bookkeeping Services?   Recording the financial data of a business in an orderly manner which will help for future reference is termed bookkeeping. Many businesses prefer outsourcing their bookkeeping to professionals rather than doing it on their own. Types of bookkeeping Single Entry Bookkeeping Businesses with minimal and uncomplicated financial transactions adopt this method of bookkeeping. This is a basic system of bookkeeping that a company uses to keep track of daily receipts or generate daily, weekly reports of cash flow. This system is not used for businesses that have accounts receivable, accounts payable, or many capital transactions. However, this system cannot be used by a bigger business with a huge sum of financial transactions as it lacks arithmetic accuracy and is not acceptable for tax purposes. Double Entry Bookkeeping This type of bookkeeping is required by businesses that have complex financial transactions. This system provides ch

  An accountant and a bookkeeper perform entirely different tasks. Bookkeepers manage your ledgers and ensure your accounts are balanced on a daily, weekly and monthly basis. Accountants are tax experts and provide a high level report into your businesses performance. This is the reason why your accountant cannot keep your books as well as a bookkeeper. Here are a few reasons why you shouldn’t let your accountant keep your books Not capable enough to understand the business An accountant does not really have an idea of what is going on in your business on a day to day basis. Most business owners go to their accountants only during tax time which means an accountant gets to have a look at the company’s books only once in that entire year. During tax time, the most that your accountant will do is getting numbers to complete your taxes. They do not focus on the little things A good bookkeeper will make sure that every detail of your accounts is kept well. But, an accountant will not be ab

  How To Register LLP?   An  LLP  is a type of business entity where all the partners have limited liabilities. Each partner is only responsible for themselves and not liable for other partners’ negligence. A  Limited Liability Partnership  is most preferred by corporations. An LLP is a separate legal entity distinct from its owners. It can enter into a contract and acquire property in its name. LLP form is not just prevailing in India. It is also seen in countries like the United Kingdom, Australia, etc. Minimum Criteria For LLP Registration Minimum of 2 partners Registered office in India At least one designated partner as an Indian resident in case of involvement of foreign nationals DPIN for all partners DSC for all Partners PROCESS TO BE FOLLOWED FOR LIMITED LIABILITY PARTNERSHIP REGISTRATION One needs to follow these steps to start an LLP in India. Appoint partners and designated partners Obtaining Digital Signature Certificate (DSC) Name Application process Prepare all legal doc

  If a company is looking to expand the business or wants to raise capital for financing large-scale projects, then borrowing funds from external agencies will be the most important source. Loans obtained by the company by way of corporate borrowings are to create a charge on the assets as security to the lender company. According to the Company’s Act of 2013 “charge” is referred to an interest or a lien created on the property or the assets of a company or any of its undertakings or both as security that includes mortgage, pledge, and hypothecation. The Company’s Act lay down for registration of charges with the Registrar of Companies. Section 77(1) of the Act states that it is the duty of every company creating a charge whether located in India or outside on its property or assets or any undertakings to register the particulars of the charge. Moreover, the ‘charge’ has to be signed by the company and the holder of the charge with the Registrar of Companies within a time frame of 30 d

  ADVANTAGES OF PRIVATE LIMITED COMPANY A  Private limited company   is the most preferred type of business entity among budgetary organizations. A private limited company is usually held for small businesses. Pvt Ltd Company Registration Benefits Read through a few advantages that you could benefit from when you  register your firm as a Private Limited Company  The establishment of a Private limited company requires only two directors It is a separate legal entity that is separate from its members. Funds  for private limited companies can be obtained easily through bank loans, angel investors, and venture capitalists. Directors of the private limited company can participate in board meetings in matters concerning their interests. A private limited company has an uninterrupted existence. This means that the functioning of the company will remain unaffected by the death or departure of any member. A private limited company holds the advantage of being legally responsible for only a limi

  This type of agreement comes in handy when the company appoints an external consultant who is knowledgeable in a particular field. During cases like these it’s always better to hire someone on contract basis. This agreement is made between the company and the consultant Benefits Consultancy agreement This agreement benefits the company and the consultant. It’s provides an outline of information regarding the tasks that need to be performed. This agreement prevents misunderstandings that may occur between the consultant and company. Specialised knowledge A consultant has the ability to provide innovative solutions to problems. They have in depth knowledge in their domain. Saving cost of the company As an employer you are entitled to provide certain added benefits to your employee. For outside employees this is not required. Flexibility of work The work schedules are very flexible for a consultant and there are no long term commitments that the consultant has to make to the company onc