Month: June 2017

Benefits of Accounting for Companies

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  • Top Benefits of Accounting for Companies

    1. Financial Clarity & Control

      • Accounting provides a clear picture of income, expenses, assets, and liabilities — helping businesses understand their financial position at any time.

    2. Informed Decision-Making

      • Accurate records enable management to make smart, data-driven decisions regarding budgeting, investment, and growth strategies.

    3. Regulatory Compliance

      • Proper accounting ensures compliance with tax laws (GST, TDS, income tax) and statutory reporting requirements, avoiding penalties and legal issues.

    4. Cash Flow Management

      • Helps monitor inflows and outflows of cash, plan payments, and avoid liquidity issues.

    5. Cost Control & Efficiency

      • Identifies unnecessary expenses and helps optimize spending, improving profit margins.

    6. Performance Tracking

      • Regular financial statements (like P&L, Balance Sheet, MIS reports) track business performance over time and against goals.

    7. Investor & Stakeholder Confidence

      • Transparent financials build trust with investors, lenders, and partners — critical for funding and expansion.

    8. Audit Readiness

      • Maintains clean, organized records that simplify the audit process and build credibility.

    9. Business Valuation Support

      • Proper accounting helps in determining fair business value during mergers, acquisitions, or fundraising.

    10. Supports Strategic Growth

    • Helps identify profitable areas, cut losses, and plan long-term strategies for scaling operations.

Simple Explanation of GST

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Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services. GST is levied at every step in the production process, but is meant to be refunded to all parties in the various stages of production other than the final consumer. Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%,18% and 28%. However, Petroleum products, alcoholic drinks, electricity, are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax regime.