Financial Accounting & BookKeeping Accounting - Every entrepreneur and businesses needs to track down the transaction done throughout the year for the purpose of filing Income tax return at the end of the FY. Also this helps in fulfilling various other compliances as per the income tax and GST law.
Bookkeeping is basically recording and maintaining the financial transactions in the books of entry of a business. It involves organising the transactions in such a manner that is required as per the Income tax law and accounting standards in India. In bookkeeping the day to day transactions are recorded and proper books are maintained which includes payment of taxes, sales revenue, loans, interest income, Pay-roll and other operational expenses, investments, etc. The daily transactions are to be updated and proper records are to be maintained for the accuracy accounting of a business.
The process of accounting involves recording classifying and summarising of financial transactions of a business. All the business necessarily require a proper accounting record for the purpose of filing Income tax Return for the end of every financial year. These accounting records serve as a precise summary of the financial transactions during a financial year. Accounting consolidates the financial transactions during the year under consideration in such a way that it reflects the financial position of the company during the year.
In most cases the accounts are maintained by a professional accountant who maintains and records the transactions as per the Income tax Act and accounting standards as per the law prevailing in India. These accounts help in assessing the financial position of the company and fulfil all the compliances as and when required.
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