Accounting Services

Accounting Services: complete guide

Introduction

Accounting is the process of recording, classifying and summarising a business's financial transactions so that its financial position and performance can be measured and reported. For an Indian business, this means more than keeping a cash book. It means maintaining a complete set of ledgers, recognising income and expenses in the correct period, accounting for assets, liabilities, depreciation and provisions, reconciling the books with bank accounts and tax records, and preparing financial statements that comply with the accounting standards and the formats required by law.

The law places clear duties on businesses. Section 128 of the Companies Act, 2013 requires every company to keep books of account that give a true and fair view of its state of affairs, on an accrual basis and according to the double entry system, and to preserve them for eight financial years. Financial statements of companies must be prepared in the format set out in Schedule III and in line with the notified Accounting Standards or Indian Accounting Standards, as applicable. Under Section 44AA of the Income-tax Act, 1961 and Rule 6F, specified professionals and businesses must maintain books once their income or turnover crosses the limits set in the law. Registered persons under GST must keep accounts of supplies, input tax credit and tax paid at their principal place of business. LLPs must keep books under the Limited Liability Partnership Act, 2008.

Good accounting is also the basis of good decisions. Accurate monthly accounts tell you which products and customers are profitable, how much cash you will need in the coming months, whether your costs are under control, and whether your tax positions are sound. Lenders and investors rely on them, and auditors and tax officers test them.

Professional help matters because accounting errors compound. A misclassified expense can affect GST credit, tax deductions and the audit report. Unreconciled bank entries hide missing receipts or duplicate payments. Late period-end adjustments delay tax filings and audits. Our team of chartered accountants and accounting professionals maintains your books on a regular schedule, reconciles them with banks and tax portals, prepares financial statements in the required format, and reports to you in plain language.

This page explains who needs accounting services, what the law requires, how our process works, the documents we need, timelines, how pricing is set and what happens once your accounts are prepared.

Who Needs It

Our accounting services are used by:

• Private limited companies and one person companies. Companies must maintain books under the Companies Act, 2013 and prepare annual financial statements for audit and filing with the Registrar.
• Limited liability partnerships. LLPs must keep books, prepare a statement of accounts and solvency each year, and get their accounts audited where turnover or contribution exceeds the limits in the law.
• Partnership firms and proprietorships. Businesses whose turnover crosses the limits in Section 44AA, or who want proper accounts for loans and planning.
• Professionals. Doctors, lawyers, chartered accountants, architects, engineers, interior decorators, technical consultants and other specified professionals whose gross receipts cross the limits in Rule 6F.
• GST-registered businesses. Traders, manufacturers and service providers who need accounts that tie in with GST returns and input tax credit.
• E-commerce sellers. Sellers who need marketplace settlements, commissions, returns and tax collected at source reconciled with their books.
• Startups. Early-stage companies that need clean, investor-ready financial statements and reliable monthly reporting.
• Trusts, societies and section 8 companies. Non-profits that need proper accounts for exemption, audit and donor reporting.
• Businesses with backlogs. Entities whose books are behind and need catch-up accounting before filing tax returns or annual company filings.

If you only need daily transactions recorded and have someone else preparing your financial statements, our bookkeeping service may be enough.

Key Benefits

• Compliance with the law. Your books are maintained in the form required by the Companies Act, the Income-tax Act and the GST law, as applicable to your entity.
• Accurate financial statements. Profit and loss account, balance sheet and, where required, cash flow statement prepared in line with the applicable accounting standards.
• Timely tax filings. Accounts are ready in time for advance tax, GST returns, TDS returns, income tax returns and tax audit.
• Smoother audits. Reconciled accounts and well-organised schedules reduce audit queries and time.
• Better decisions. Monthly or quarterly reports give you a clear picture of revenue, margins, expenses and cash.
• Fewer errors and notices. Regular reconciliation with bank statements and tax portals catches mismatches before they become notices.
• Lower cost than an in-house team. You get qualified accounting support without the cost of hiring, training and supervising a full department.

Accrual and cash basis: why it matters. Companies must keep accounts on an accrual basis, which records income when it is earned and expenses when they are incurred, regardless of when cash moves. Some smaller non-corporate businesses and professionals use the cash basis. The basis you use affects the profit you report, the tax you pay in a year, and how your accounts are read by lenders and investors. We confirm the correct basis for your entity and apply it consistently.

How accounting connects to GST and TDS. Your books feed directly into GST returns and TDS statements. Sales recorded in the books should match outward supplies reported in GST returns. Input tax credit claimed should match the credit reflected in the auto-generated statements on the GST portal. TDS deducted from vendors should match TDS returns, and TDS deducted by customers should match your annual tax statement. Our monthly reconciliations bring these together so that differences are investigated and corrected early.

Eligibility and Legal Requirements

Accounting services can be taken by any business or professional. The legal requirements that shape the work include:

• Companies Act, 2013. Section 128 requires books of account on an accrual basis and by the double entry system, kept at the registered office or another place decided by the board, with electronic books maintained under the Companies (Accounts) Rules, 2014, including a backup on servers physically located in India. Books must be preserved for eight financial years.
• Financial statements. Section 129 and Schedule III prescribe the format of financial statements. Companies follow the Accounting Standards or Indian Accounting Standards notified under the Act, depending on their size and listing status.
• Audit trail. Companies using accounting software must use software that records an audit trail of each change, which cannot be disabled, under the Companies (Accounts) Rules, 2014.
• Income-tax Act, 1961. Section 44AA and Rule 6F require specified professionals and other businesses to maintain books once income or turnover crosses the limits in the law. Section 44AB requires a tax audit above specified turnover or receipts levels. The Income Computation and Disclosure Standards apply in computing taxable income for businesses following the mercantile system.
• GST law. Registered persons must keep accounts of production or manufacture, inward and outward supplies, stock, input tax credit, output tax and other prescribed records, and retain them for the period set by the law.
• LLP Act, 2008. LLPs must maintain proper books on a cash or accrual basis according to the double entry system and file an annual statement of accounts and solvency.
• Trusts and societies. Charitable trusts and institutions claiming exemption must maintain books and get them audited as required under the Income-tax Act.

Accounting standards, the Companies Act rules and tax requirements are revised from time to time. We apply the requirements in force for the period being reported and check current rules at the time of filing.

Step-by-Step Guide

1. Initial consultation. We understand your business model, entity type, turnover, transaction volume, existing accounting system and the filings you must make.
2. Scope and engagement letter. We agree the scope of work, frequency of accounting, reports, deadlines and responsibilities in a written engagement letter.
3. Systems and access. We set up secure access to your accounting software and bank statements, or help you select and set up a suitable system with an audit trail.
4. Chart of accounts. We review or design the chart of accounts so that income, expenses, assets and liabilities are classified correctly for reporting and tax.
5. Opening balances. We verify opening balances from the previous year's financial statements and reconcile any differences.
6. Recording transactions. We record sales, purchases, expenses, receipts, payments, payroll entries and journal adjustments at the frequency agreed.
7. Reconciliations. We reconcile bank accounts, customer and vendor ledgers, GST input tax credit, GST output liability and TDS balances.
8. Period-end closing. We make adjustments for accruals, prepaid expenses, depreciation, provisions, inventory and other items, and close the books for the month, quarter or year.
9. Financial statements and reports. We prepare the profit and loss account, balance sheet, cash flow statement where required, and notes, along with management reports in a format you can use.
10. Audit and filing support. We prepare schedules for the auditor, coordinate with them during the audit, and share finalised accounts with your tax and compliance team for filings.

Documents Checklist

For setting up the engagement:

• Certificate of incorporation or registration, and PAN of the entity
• GST registration certificates for each state
• TAN, and registrations under professional tax, provident fund and ESI, where applicable
• Previous year's audited or finalised financial statements
• Previous year's income tax return and tax audit report, where applicable
• Access to the accounting software and data file, if already in use

For regular accounting:

• Sales invoices, credit notes and debit notes
• Purchase invoices and expense bills
• Bank statements for all accounts, including loan and overdraft accounts
• Payment and receipt records from payment gateways and wallets
• Payroll records, salary registers and reimbursement claims
• Fixed asset purchase and sale invoices
• Loan agreements and repayment schedules

For tax reconciliation:

• GST returns filed and input tax credit statements from the GST portal
• TDS returns filed and challans paid
• Annual tax statement showing TDS credits and reported transactions

For e-commerce sellers:

• Settlement reports from each marketplace
• Commission, fee and return reports
• Tax collected at source statements

For year-end closing:

• Stock statement or inventory valuation as at year end
• Confirmation of balances from major customers, vendors and lenders, where needed
• Details of contingent liabilities, commitments and related party transactions

How Long It Takes

• Onboarding and setup: usually one to two weeks, including access, chart of accounts and opening balance review.
• Monthly accounting: books are typically updated and reconciled within ten to fifteen days after the month ends, once documents are received.
• Quarterly closing: usually completed within three to four weeks of the quarter end.
• Annual financial statements: typically prepared within four to six weeks after the year end, depending on the volume and timely receipt of year-end information.
• Catch-up accounting: depends on the number of months or years pending and the condition of the records. We share a timeline after an initial review.

Timelines depend heavily on how quickly documents are shared. A regular, agreed schedule for sending invoices and statements keeps the work on track and ready for statutory deadlines.

Pricing

Accounting Services are priced on request, and you can contact us for pricing. The fee depends on the scope of work rather than a single fixed amount, because accounting effort varies widely between businesses.

The main factors that affect the quote are:

• The entity type, such as company, LLP, firm, proprietorship or trust
• The number of transactions each month, including invoices, bills and bank entries
• The frequency of accounting and reporting, whether monthly, quarterly or annual
• The number of bank accounts, GST registrations, locations and business lines
• Whether inventory, foreign currency transactions or group reporting are involved
• The condition of existing books and whether catch-up work is needed
• The level of management reporting you require

After a short discussion, we provide a written quote setting out the services included, the reports and deliverables, timelines, and items that are charged separately. Government fees and software subscription charges, where applicable, are payable at actual. Statutory audit, tax audit and tax filings are separate services and can be combined with accounting.

Common Mistakes to Avoid

• Mixing personal and business transactions. Using the same bank account for personal and business purposes makes accounts unreliable and raises tax questions.
• Recording only cash movements in a company. Companies must follow the accrual basis. Ignoring unpaid bills and unbilled income misstates profit.
• Not reconciling with GST data. Differences between books and GST returns lead to lost input tax credit, interest and notices.
• Leaving the books until year end. Year-end catch-up is rushed and error-prone, and leaves no time to fix issues before the tax and audit deadlines.
• Wrong classification of expenses. Treating capital purchases as expenses, or personal expenses as business expenses, affects tax and audit outcomes.
• Using software without an audit trail. Companies must use accounting software with an audit trail that cannot be disabled.
• Not keeping supporting documents. Every entry should be backed by an invoice, bill or other document, retained for the period the law requires.
• Ignoring related party transactions. Transactions with directors, partners and their relatives need correct recording and disclosure.

What Happens After

Once your accounts are prepared:

• Review and approval. You review the financial statements and reports with our team and approve them. For a company, the board approves the financial statements.
• Audit. For companies and other entities that need an audit, the auditor examines the accounts. We provide schedules and respond to queries.
• Tax filings. The finalised accounts are used for the income tax return, tax audit report where required, and annual GST return and reconciliation where applicable.
• Company and LLP filings. Audited financial statements are filed with the Registrar of Companies in the required forms, along with the annual return.
• Management decisions. Use the monthly or quarterly reports to track performance, plan cash, set budgets and discuss funding with lenders or investors.
• Record keeping. Books and supporting documents must be preserved for the period required by law, which is eight financial years for companies.
• Ongoing improvement. As your business grows, you may add a virtual accountant, internal audit or virtual CFO support.

FAQs

What is included in accounting services?

Recording of transactions, maintenance of ledgers, bank and ledger reconciliations, period-end adjustments, preparation of financial statements and management reports, and support for audits and tax filings.

Do I need accounting services if I already have bookkeeping?

Bookkeeping records transactions. Accounting adds the adjustments, closing and reporting needed to produce financial statements. If no one is preparing your financial statements and reconciling them with tax data, you likely need accounting services as well.

Is my business required to maintain books of account?

Companies and LLPs must maintain books. Other businesses and professionals must maintain books under Section 44AA of the Income-tax Act, 1961 when their income or turnover crosses the limits in the law. GST-registered persons must keep the records required under the GST law.

How long do I need to keep my books?

Companies must preserve books for eight financial years under the Companies Act, 2013. Income tax and GST laws have their own retention periods, which can be longer in cases involving assessments or proceedings.

Which accounting standards apply to my company?

Most small and medium companies follow the Accounting Standards notified under the Companies Act. Listed companies and companies above certain net worth levels follow Indian Accounting Standards. We confirm what applies to you.

Can you work on my existing accounting software?

Yes. We work with the commonly used desktop and cloud accounting software in India. For companies, the software must have an audit trail feature, as required by the rules.

How often will I receive reports?

That depends on the scope you choose. Most clients receive monthly or quarterly management reports, and annual financial statements after the year end.

Can you prepare accounts for past years?

Yes. We take on catch-up accounting for past periods, which is often needed before filing pending income tax returns or annual company filings.

Do you also do the statutory audit?

Audit is a separate service. Under professional independence rules, an auditor cannot audit accounts they have prepared, especially for companies. We explain how this affects your engagement.

How do you handle confidentiality?

Your data is accessed only by the team working on your engagement and shared through secure channels. Our professionals follow the confidentiality obligations of their professional bodies.

Do you file GST and income tax returns as part of this service?

We prepare and reconcile the data needed for GST and income tax filings. The filings themselves are part of our tax compliance services, which can be combined with accounting.

Why is there no fixed price on this page?

Accounting effort depends on transaction volume, entity type, complexity and the state of your books. We provide a written quote after understanding your needs, so you pay for the work your business actually requires.

What do I need to provide each month?

Sales and purchase invoices, expense bills, bank statements, payroll data and any other financial documents for the month, shared through the secure process we set up with you.

Can you help if my books have errors from earlier years?

Yes. We review earlier periods, identify errors and suggest corrections in line with the accounting standards and tax rules. Some corrections may need disclosure or revised filings.

Services by city

• Accounting Services in Delhi
• Accounting Services in Mumbai
• Accounting Services in Bengaluru
• Accounting Services in Pune
• Accounting Services in Hyderabad
• Accounting Services in Chennai
• Accounting Services in Kolkata
• Accounting Services in Gurugram
• Accounting Services in Noida
• Accounting Services in Greater Noida
• Accounting Services in Ahmedabad
• Accounting Services in Chandigarh
• Accounting Services in Navi Mumbai
• Accounting Services in Patna

Related Accounting & Finance services

• Audit & Assurance
• Bookkeeping Services
• Internal Audit
• Virtual Accountant