Accounting is the art of identifying, recording, classifying and summarizing, in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character and interpreting the results thereof. The purpose of Accounting is to accumulate financial data and provide a report on financial performance like Balance sheet, Profit and loss statement and cash flow statement. Income Tax Law and GST also require to maintain books of accounts either through a computerised system or Manually, hence accounting services have gained importance.
Today, fierce competition has forced businesses to outsource their non-core aspects of the business so that they can focus on things that help them stay relevant and grow. The reduced focus on peripheral activities allows the business owners to do what they do best and build their organizations. Provenience can help startups and corporates through bookkeeping services.
Accounting services and GST accounting helps in systematically maintaining business records. A reliable financial record is the most crucial aspect of bookkeeping and accounting services.
The outcome of the accounting process is a financial statement. This will show the profitability, liquidity, and operating performance of the business.
Resources are scarce, and organization need to plan on how they allocate the resources. Decisions should be taken based on data which is generated by the accounting system. Figures and reports generated by the outsourced accounting services will be vital in making paramount business decisions.
Accounting is a legal requirement for most businesses. Law requires businesses to maintain an accurate financial record of their transactions and to report their financial results to shareholders, tax authorities, and regulators. Accounting information can be produced in legal matters in the court of law.
Identify the transaction and prepare transaction source document.
Analyse and classify the transaction and identification of heads to be debited and credited.
Record the transaction in double entry
Post journal entry to the ledger account
Accounting is the process of accessing, measuring, recording, classifying, verifying, summarizing, interpreting and communicating financial information. It provides information on operational efficiency and other financial aspects of the business. The end product of accounting is financial statements which provide a basis for decision making.
As per Income Tax Act 1961, Sec 44AA, if the income from business or profession exceed 1,50,000 or the total sales exceed 25,00,000 in any of three previous years, you are required to maintain proper book of accounts.
Accounting is the backbone of businesses, given below are the few benefits of accounting
Double entry bookkeeping is a system of accounting where an account is debited, and another corresponding account is credited. It has two equal side debit and credit. It keeps the system on auto reconciliation.
A financial statement like balance sheet, profit and loss, cash flow statements etc. are the final output of the accounting process.
Comparison between manual accounting and computer-based accounting
Accounting helps businesses in the following ways
Apart from Tally and Busy which are most popular accounting software in India, there are also some other cloud-based software platforms, for example, Quick book, Zoho, Sage Accounting which has gained popularity in India for their rich reporting features.
There are certain important measures taken by the accounting service providers, which include password-protected servers, confidentiality agreements, and secure service support. These measures ensure that the business accounting data will not be leaked. We at Provenience, give utmost importance to the security of your data.
Outsourcing your accounting services or just your GST accounting enables you to focus on your core business while the experts can do the compliance and financial tasks of your business.
There are no restrictions on the location of outsourced accounting services that you hire.