Difference between Bookkeeping and Accounting?

When most small business owners consider the terms bookkeeping and accounting, they often use them interchangeably. While it’s true both bookkeeping and accounting are important within the management of your company’s finances, some key differences between the 2 functions do exist. Therefore, business owners got to understand the roles of every and the way they work together to make sure your company’s success.

Yes, bookkeeping and accounting both need to do with money and therefore the financial picture of your business, but there are key differences. Here’s your chance to know them.When running your business, your ability to grow and succeed is usually hooked in to how organized your financial records are. But managing your business finances is quite just recording your financial transactions and balancing your checkbook. For your business to flourish, you want to be ready to access and use your company’s financial reports to develop a workable business strategy. While both bookkeepers and accountants handle your business’s financial information, they perform different tasks within your company’s financial cycle.

The Function of Bookkeeping

Bookkeeping is comprised of the tasks required during the primary a part of the accounting process. It involves the consistent, timely, and accurate recording of a business’s financial transactions in chronological order. A bookkeeper’s duties include:

Maintaining an entire and arranged set of books, comprised of the overall ledger and every one subledgers (i.e., fixed assets, inventories, assets , accounts payable, cash, tax, costs, and sales) during which to post financial transactions.

Creating and issuing customer invoices.
Recording suppliers’ invoices.
Paying suppliers.
Logging cash receipts from customers.
Documenting inventory changes.
Processing employee payroll.
Managing fund transactions.
Preserving all supporting documents for all business transactions.

A bookkeeper follows a selected set of procedures to perform these duties on a repetitive basis. The complexity of a company’s bookkeeping system depends on the dimensions of the business and the way many transactions are completed on a daily, weekly, and monthly basis. Typically, an accountant or the tiny business owner oversees the bookkeeper’s work.

The Function of Accounting

Accounting involves the method of analyzing, interpreting, reporting, and summarizing the financial data recorded by the bookkeeper or the business owner. a number of an accountant’s responsibilities include:

Preparing adjusted entries (i.e., earned revenue or incurred expenses that haven’t yet been recorded during the bookkeeping process).
Preparing financial statements on the condition and performance of the corporate .
Creating management reports to deal with specific issues.
Analyzing operations costs.
Creating a corporation budget.
Compiling tax returns from the financial data.
Helping the business owner understand the company’s financial data and therefore the impact of his/her financial decisions.

Basically, the accounting process helps you understand where your business stands financially at any point in time by measuring your company’s progress within the terms of growth and financial success. Additionally, the financial data generated helps you to form informed business decisions, so you’ll plan for your company’s future.

Benefits of Filing Income Tax Return (ITR)

Income Tax Return is a document an individual is required to file with the Income Tax Department on a yearly basis. However, it is not mandatory for everyone to file the Return. If your income in the previous year is above the basic exemption limit of INR 2,50,000 (Rupees Two Lakh Fifty Thousand only), then you are required to file the Income Tax Return compulsorily.

Even though it is not mandatory for some persons to file the Income Tax Return, one should file it every year as there are many benefits of filing it.

Here are some of the major benefits of filing Income Tax Return:

Loans and credits:
 In order to urge a loan, one should have the tax Returns for the last three years. All banks and lending institutions invite a minimum of three years of tax Returns to grant a loan to a private . At the time of processing application , banks and lending institutions check the declared income and source to verify the repaying capacity of the individual seeking a loan. They use tax Returns to verify an equivalent .

In case you’re seeking a private loan, a home equity credit , or a automobile loan , it’s essential for you to file tax Return. If you often file tax Return, you’ll get a loan from any bank or financial institution very easily. Even the banks prefer allotting credit cards to perons who file regular tax Returns.

Easy to claim your TDS:
 TDS means Tax Deducted at Source. it’s a Tax deducted from your income by the person paying the salary or making the other payment on which TDS is applicable. The deductor while making the payment deducts the tax amount and pays it to the tax department directly on your behalf.

You may get the tax amount so deducted by filing tax Return. If there’s no tax amount payable at the time of filing the tax Return, the entire TDS amount are going to be refunded.

If you’re working as an employee during a company and earning but Rs 2.5 lakh a year, you’ll claim your TDS from the Tax department. just in case you’re a businessman and need your TDS to urge back in your account, it’s mandatory to file an ITR per annum .

For going out of country
 In order to use for a VISA to go to any country, you would like to possess tax Returns. While giving VISA, embassies officials check the income proofs and address proofs of a private . Thus, tax Returns are checked by the officials to verify the income and address. Therefore, if you’re getting to go abroad, you want to get your tax Return filed immediately.

From the fiscal year 2017–18, tax Return of a previous year are often filed within the same assessment year only. After the top of the assessment year, the tax Return of the previous year can’t be filed.

Required for giant insurance cover:
 If you would like to use for an insurance cover of over INR 50,00,000 (Rupees Fifty lakh only), the insurance companies invite tax Return. The annual income and tax returns help insurers to work out the precise premium amount and security amount. Most of the days , tax Return may be a necessary document for purchasing an insurance cover.

Helps in executing financial transactions:
 Income Tax Return is required just in case of executing some financial transactions. Transactions or payments for house, car, mutual funds etc require tax Returns. Some payments for giant investments also need tax Returns.

Address proof:
 Income Tax Return works as an address proof in many government organisations and agencies. you’ll use it as an Address proof in situ of unavailability of other documents.

Source: http://companyformationindia.com/blog/benefit-filling-income-tax-returns.html

How to sell on Online Portal

Step 1

Register your business (How to Sell Online in India)

There ar three choices to try and do a similar. Please choose the most effective possibility supported the variations listed below.

Private Ltd.
Entrepreneurs reaching to raise funds for angles or VC’s
If you’re 2 or additional partners
Time Taken: five Days
Cost: Rs fifteen,000

LLP
Best suited to traders and on-line sellers
If you’re 2 or additional partners
Time Taken: five Days
Cost: Rs 8,500

Proprietorship
Best suited to individual traders and on-line sellers
Time Taken: two Days
Cost: Rs fifteen,000

Step 2

Apply for a store and institution act license
It will price you Rs 1500 to Rs 3500 looking on the kind of structure. it’ll take solely two days to urge his registration. it’s mandatory for all kind of businesses and is necessary to show the license at registered workplace.

Step 3

Apply for GST registration
This is a mandatory registration needed to sell on-line. The time needed for a similar are going to be five days.

Learn all about DIR- 3 KYC

Starting your own business may be a long cherished dream and changing into a Director is that the most honourable position. As you all apprehend that to begin a corporation in Republic of India it's vital to urge the corporate registration through with the Registrar of firms and wish to follow the rules arranged down by the Ministry of company Affairs.

Suddenly there was a bout of confusion for all the administrators of the corporate by receiving messages from the Ministry of company Affairs to file the DIR- three KYC before the maturity date that was fifteenth Gregorian calendar month 2018 to hold on along with your prestigious position as a Director and keep the DIN standing Active.

So all the leased Accountants, Company Secretary companies were activated with this news and were needed to support their revered purchasers seeking for the main points and the way to travel concerning it.

As we tend to all square measure aware that the Ministry of company Affairs makes amendments and frames rules as per the businesses Act 2013, DIR- three KYC was conjointly introduced within the year 2018. In straightforward terms, i'd prefer to justify all concerning DIR- three KYC.

Documents Required:
1. Name (as per PAN database)
2. Father’s Name (as per PAN database)
3. PAN of the Director (mandatory for voters of India)
4. Date of Birth (DoB)” (as per PAN database)
5. Personal Mobile variety and private Email Address
6. Proof of gift Address like financial statement or any Utility Bill within the name of the director with the right address, less than a pair of months previous.
7. Aadhaar is obligatory, if it's appointed. If not, then elector ID or Passport or license shall be connected.
8. Digital Signature of Director (Rs 800 are going to be requested if DSC isn't offered or DSC has expired)

Pre-requisites for filing the DIR- three KYC
1. The DIR- three KYC type must be punctually certified by a active leased businessperson/ Company Secretary/ Certified Management Accountant
2. The form ought to be uploaded beside the Director’s Digital Signature Certificate (DSC)
3. For Associate in Nursing Indian subject, the PAN mentioned in DSC are going to be verified with the PAN within the DIR- three KYC type
4. For Foreign nationals, the name within the DSC and therefore the name within the DIR – three KYC type ought to match
5. Non-Resident Indians (NRIs) should have a far off address and mobile variety
6. In case of multiple DIN numbers, the Director must retain the oldest DIN variety and submit all the most recent ones by filing DIR five type.

So, all this exercise is completed by the govt. of Republic of India to create the business clear and authentic, and anyone or everybody can't be a Director. To be a Director in Republic of India, it's obligatory to possess your documents done as per the Indian Government standards.

COMPANY FORMATION IN INDIA |  COMPANY REGISTRATION IN INDIA

Casual Taxable Person Under GST

For Casual nonexempt Persons, it troublesome to stay up a set spot of business or document month to month GST returns systematically, as a result of their business would be regular in nature with no fastened spot of business. Extraordinary arrangements are given beneath the GST Act to the registration of casual nonexempt persons.

Registration Obligation for Casual Taxpayers

GST Registration in-state base and later on there could be wherever a private United Nations agency is registered beneath one state could likewise need enrolling beneath another state but only for a handful of days.

Further, she or to boot doesn’t produce other permanent spots of business from wherever he or she will be able to take registration.

In this manner, the concept of casual nonexempt person can facilitate that individual United Nations agency doesn’t have any permanent spot of business however rather they’re in danger to register beneath GST from that state.

A casual nonexempt person individual creating AN assessable offer in India must essentially take entering. there’s no most limit for duty tour. an informal nonexempt individual cannot pay tax on restrictive expense beneath musical composition tariff. The person must apply for duty tour at any condition five days earlier to beginning his business in India.

Advance Tax Deposit Provisions for Casual taxpayers

In distinction to customary nonexempt voters, casual nonexempt persons area unit needed to submit tax earlier than time for GST entering. The live of duty to be saved would be reminiscent of the traditional expense obligation throughout the legitimacy time of GST duty tour. henceforward on applying for GST registration, a fugacious reference variety is made for payment of GST store. On paying the GST store, the electronic cash record of the subject is attributable and GST duty tour written document comes out.

Registration Procedure for Casual Taxpayers

For Registration as Casual Taxpayers following system ought to be trailed by Person

• 1. For Registration kind, GST REG-01 (PART A) usage by the normal subject are utilized by Casual remunerator
• 2. An individual United Nations agency must take registration can offer his or her PAN variety, mobile variety, email-address, State within the kind antecedently mentioned
• 3. Following the submission of PAN, the validity of the cardboard are examined by the Central Board of Direct Taxes; mobile numbers and email address are confirmed through a one-time word. On fruitful checking of PAN, and alternative needed details a short lived variety are created to be in-tuned with the actual candidate.
• 4. After the reference variety has been generated, the candidate can electronically gift AN application within the PART-B of the same kind aboard the documents indicated within the aforementioned kind at the portal.
• 5. A temporary reference variety are given to the candidate by the Common Portal for creating the obligatory advance tax deposit for a total adequate to the assessed duty risk of such individual for the amount that the duty tour is wanted.
• 6. Next, a registration authentication are issued electronically. The hold on total are attributable to the electronic cash record of that casual nonexempt person.
• 7. After total submission, AN affirmation are issued electronically to the candidate in kind GST REG-02
• 8. If the casual nonexempt person proposes to elongate the time of registration then AN application in kind GST REG-11 are submitted electronically through the regular entry before the end of the validity of registration conceded to him.

The validity of GST Certificate of Registration for an informal nonexempt person

The validity of GST certificate of registration for an informal nonexempt person is valid for ninety days from the activation date of duty tour. still, the right official, in line with the aforementioned assessable individual, could lengthen the legitimacy of the antecedently mentioned time of ninety days by an extra amount not surpassing ninety days.

Returns ought to be filed by Casual nonexempt Person

• 1. FORM GSTR-1 provides the main points of outward provides of merchandise or services to be documented at the newest the tenth day of consequent month.
• 2. FORM GSTR-2 provides the main points of inward provides to be documented when tenth nonetheless before the fifteenth day of consequent month.
• 3. FORM GSTR-3 to be documented when the fifteenth day nonetheless before the 20 th day of consequent month. Casual nonexempt Person needed to document any Annual come back as needed by traditional Regular remunerator.

Refund for Casual nonexempt Person

Only when fine-tuning his tax responsibilities, a remunerator becomes eligible to urge the refund of any balance of the deposited advance tax by him. A tax will be reimbursed solely in the end the returns are delivered. The refund and balance-related things area unit cited in serial variety fourteen of the ultimate kind GSTR-3 come back needed to be bimanual over by him or her (instead of kind GST RFD 01).

A nonexempt subject becomes qualified to urge the refund of any balance of the deposited advance tax created by him. AN assessment will be discounted merely when each one of the profits has been outfitted.

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