With an exemplary track record, All India ITR has been offering bookkeeping services to diverse and expansive businesses over a wide section of industries. The services offered by All India ITR have been designed to help customers with preparing Balance Sheet, creating Profit & Loss Statement and Bank Reconciliation. Our tax experts will provide any guide on any accounting requirements which will eventually result in cutting-back the operational costs of a finance department for many entities.
All India ITR has a strong team of accountants, equipped with keen accounting skills to render a range of bookkeeping services for businesses.
Requirement for Maintaining Book of Accounts
Any profession that has a gross receipt of more than Rs. 1,50,000 in 3 preceding years for an existing profession must maintain an accounting record. This is also applicable for a newly established profession whose expectant gross receipt is more than Rs. 1,50,000.
The requirement in the accounting records have been prescribed in Rule 6F and the following professions fall under the banner:
- Technical consultancy
- Interior decoration
Freelancers pursuing any of the listed professions who have a gross receipt of more than Rs. 1,50,000 are also applicable under this rule.
There is no specification of the types of the book of records which should be maintained, however, the only condition is that the AO must be able to determine the taxable part of the professional income from the available records. From the AY 18-19, the limit of Rs. 1,50,000 will be increased to Rs. 2,50,000.
All India ITR Book-Keeping Charges
- Monthly: Book-Keeping and Returns (except for GST)
- P&L, Balance Sheet
- Up to 100 entries yearly = Rs. 5,000/month
- 100-500 entries = Rs. 10,000/month
Bookkeeping Services All India ITR Provides
An entity's assets, liabilities, and equity within a given period are summarized in a report on a balance sheet. The financial statements of a company include a balance sheet as one of its documents. In a financial statement, balance sheet covers the end of the reporting period, while the entire reporting period is covered in the income statement and statement of cash flows.
The contents of a typical Balance Sheet are:
- Assets: Assets include cash, prepaid expenses, marketable securities, accounts receivable, fixed assets and inventory.
- Liabilities: Liabilities are the accounts which are payable, accrued liabilities, payable taxes, long-term and short-term debts.
- Shareholders' Equity: The stocks, retained earnings and the treasury stock all come under the shareholder’s equity.
Profit and Loss Statement
Also known as income statement, the Profit and Loss statement (P&L) is used for providing information on how the business is doing. It contains statements of expenses incurred by a company, the profit earned and the cost of operation.
The contents of a P&L statement are as follows:
- The entire income of the business entity.
- The total cost of goods sold.
- The business expenses which are deductible.
- The computed accounting profit or loss.
The uses of a Profit and Loss Report is for calculating tax, for the application of loan, checking the cost of goods sold, analyzing the trading trend of the business and aiding in improving the operation of the business.
When a company performs a procedure to certify that its records (inclusive of general ledger, check register, balance sheet etc.), as well as its bank's records, are correct, the process is known as bank reconciliation.
Whenever a company receives its bank statements, the company is mandated to verify and state that the amount marked in the bank statement matches the amount in the cash account of its general ledger.
The following processes are involved in Bank Reconciliation
Step 1. Adjustment in the balance in accordance with the bank.
Step 2. Adjustment in the balance in accordance with the books.
Step 3. Comparing and verifying the adjusted balances.
Step 4. Preparation of Journal Entries.
Books of Account Specified as per Rule 6F
- Cash Book: Cash book is the record where the day to day cash receipts and the total payment at the end of the day or at the end of each month are documented.
- Journal According to Mercantile System of Accounting: All day to day transactions is logged in a journal. In accounting terms, it is a record where the total credits are equal to the total debits when the double entry system of accounting is followed (meaning, each debit has a corresponding credit and vice versa).
- Ledger: The financial statement of a business can also be prepared with the use of a ledger where all the entry-flows from the journal and it contain details of all accounts.
- Photocopied of bills or receipts issued, which are more than Rs. 25.
- Original bills of the expenditure that have been incurred and are more than Rs. 50.
The accounting bookkeeping section of any business plays a key role in efficiently operating the business. The accounting services at All India ITR are modeled to cater to a wide and variant clientele base.