Saturday, 30 April 2016

Why Should You Outsource Your Bookkeeping Services?

As a small business enterprise you have many things taking up your time. You manage your clients, your accounts, marketing plans and employees. Managing your company’s accounting may seem like one of the easier things that you do, so you may not notice how much time you lose keeping track of income and expenses in a spreadsheet or worse, with pen and paper.
You can’t actually do everything:
There’s a myth that successful entrepreneurs need to be able to do it all. They need to be experts and have intimate knowledge of tax details, and detailed knowledge of the inner workings of every part of their company, which is very untrue.
In fact, no successful company can run this way. In the startup phase, many entrepreneurs do end up picking up a little bit of everything, but as a company grows and expands, one of the crucial steps that entrepreneurs must go through is learning to delegate to other people, so that they can focus on building and growing the company.
Improve performance in other areas:
Outsourcing bookkeeping services is just one way that an entrepreneur can take a set of tasks off their plate, freeing up time for other core business and work. Instead of spending time cutting and pasting into each separate invoice before emailing it out, accounting services manage the process for you.
Proper accounting is a big help to the company as this would provide financial information and standing of the company that will be helpful in making management decision
Don't wait for the tax return to find out how your company is doing:
Knowledge of accounting helps you understand financial records, such as the balance sheet and profit/loss statement, which reveal the worth of your company and whether it is profitable. This allows you to make decisions to correct or adjust any areas of financial concern in your business before you receive your annual tax return. If you wait until you receive your tax return, it may be too late to detect vital errors that could save your business. 

Skilled Worker with the desired knowledge:
Accounting firms, bookkeeping firms and staffing agencies train their employees with extensive testing and offer employees training so you know you are getting a skilled worker. You may not be able to afford to hire an individual with the level of ability you need, and it is also unlikely that you can afford to enhance your employee's skills with additional training. For this reason, outsourcing may offer you the opportunity to bring in a worker with a higher level of expertise than you would have been able to afford otherwise.
For more clarification you can Contact Us

Sunday, 23 February 2014

Transactions reported to Income Tax Department

Under income tax laws  institutions are required to report the details of those transactions which you have entered into or registered with them. All the banks, mutual funds and companies issuing shares are required to submit the details. Besides, the office of the registrar where your sale and purchase transaction of immovable properties are registered, is also required to send the details of such transactions to the income tax department. These establishments have your PAN and other details, so there is virtually no way one can sneak past them. The following transactions are required to be informed to the Income Tax Department
  1. Cash deposits aggregating to Rs. 1,000,000 or more in a year in any of your savings account in the bank.Banks also includes cooperative banks. Infact it applies any bank or banking institution which comes under the section 51 of Banking Regulation Act, 1949 (10 of 1949). Banks are not required to report in cases where cash exceeding Rs 10 lakh has been withdrawn from the savings account but the cash deposits have not crossed the threshold limit during the financial year.
  2. The transaction of payments for credit card if the aggregate payment made during the financial year is Rs 2 lakh or more during the financial year.
  3. Investments of Rs 2 lakh (200,000) or more in Mutual Fund
  4. Investments of Rs 5 lakh (500,000) or more in bonds or debentures issued by a company or institution
  5. Investments of Rs 1 lakh (100,000) or more in the shares issued by a company
  6. Purchase or Sale of any immovable property valued at Rs 30 lakh (30,00,000) or more
  7. Investments of Rs 5 lakh (500,000) or more in a year for investment in bonds issued by Reserve Bank of India
The values of the transactions mentioned above have to be considered as aggregate in a year and not per transaction.

“You cannot hide any longer …therefore, today the best policy is to admit your income and pay tax” Finance Minister  P Chidambaram had said in Mar 2013.  P Chidambaram said the tax department has information about people’s expenditure patterns and their financial transactions.We have issued notices to 35,000 people saying that on the basis of information we have, you should have filed your returns. Another 35,000 notices are going next week “No. In income tax there is no case for amnesty. Because now almost all returns are online except a small category which was exempt. We have a huge amount of data which is being mined. Therefore, there is no case for amnesty today”

Almost 23 crore of such high-value transactions are under the scanner and notices have already been dispatched to thousands of taxpayers. The notice typically asks the taxpayer to respond in writing. His personal presence is not required. If the system detects a mismatch in income, investments and expenses, it will automatically pick the return for scrutiny.

Monday, 17 February 2014

Interim Budget highlights

·         No change in direct taxes
·         Excise cut on capital goods cut from 12% to 10%
·         Excise duty cut on small cars reduced from 12% to 8%
·         Excise duty for SUVs cut from 30% to 24%
·         Excise duty for large and mid-segment cars cut to 20%
·         Excise duty on mobile handset will be 6 %with CENVAT credit 0r 1% without CENVAT Credit
·         customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols at         7.5 percent.
·         To encourage domestic production of specified road construction machinery, withdrawal of the exemption             from CVD on similar imported machinery.
·         loading, unloading, packing, storage and warehousing of rice exempt from service tax.
·         services provided by cord blood banks are also healthcare services and be exempt from service tax.