Accounting Services Overview

Proper accounting is the foundation of any successful business. FinTax24 provides comprehensive accounting services from day-to-day bookkeeping to financial statement preparation and advisory.

What We Offer

Bookkeeping

• Daily transaction recording
• Invoice and bill management
• Bank reconciliation
• Expense categorization
• Accounts receivable management
• Accounts payable processing
• Ledger maintenance

Financial Statements

• Balance Sheet preparation
• Income Statement (Profit & Loss)
• Cash Flow Statement
• Cash Reconciliation
• Trial Balance verification
• Financial analysis and ratios

Financial Advisory

• Cash flow forecasting
• Working capital analysis
• Cost reduction strategies
• Profitability optimization
• Financial planning
• Business valuation

Accounting Methods

Cash Basis Accounting

When to Use:

• Small businesses with simple transactions
• Service-based businesses
• Freelancers and professionals

Advantages:

• Simple to implement
• Shows actual cash position
• Lower compliance requirement

Disadvantages:

• Doesn’t show true profitability
• Can’t claim revenue not received
• May not be legally acceptable for all businesses

Accrual Basis Accounting

When Required:

• Companies with turnover > ₹1 crore
• Businesses with credit transactions
• Legally mandated for GST registration
• Required for audit-required entities

Advantages:

• Shows true business performance
• Matches revenue with expenses
• Required by law for larger entities
• Better for financial analysis

Process:

1. Record revenue when earned (not received)
2. Record expenses when incurred (not paid)
3. Adjust for received/paid amounts periodically
4. Generate financial statements on accrual basis

Chart of Accounts

Asset Accounts

• Cash and bank deposits
• Accounts receivable
• Inventory
• Fixed assets (property, equipment)
• Intangible assets
• Prepaid expenses

Liability Accounts

• Accounts payable
• Accrued expenses
• Tax liabilities
• Loans and borrowings
• Deferred revenue

Equity Accounts

• Capital contributed
• Retained earnings
• Drawings/distributions
• Profit or loss

Revenue Accounts

• Sales revenue
• Service revenue
• Interest income
• Commission received
• Rent income

Expense Accounts

• COGS (Cost of Goods Sold)
• Salaries and wages
• Rent expense
• Utilities
• Office supplies
• Marketing expense
• Depreciation
• Interest expense

Month-End Close Checklist

Week 1

• Collect all invoices and receipts
• Record all transactions
• Bank reconciliation
• Accounts receivable follow-up
• Accounts payable review

Week 2

• Verify all entries are recorded
• Check for duplicate invoices
• Confirm vendor bills received
• Review outstanding payments
• Validate employee expense reports

Week 3

• Make adjusting entries (accruals, prepaid items)
• Calculate depreciation and amortization
• Review inventory valuation
• Accrue unbilled revenue
• Accrue unpaid expenses

Week 4

• Generate trial balance
• Prepare financial statements
• Review income statement for reasonableness
• Verify balance sheet balances
• Create variance analysis
• Document closing entries

Accounting Standards

AS (Accounting Standards)

• Indian GAAP standards
• Used for financial reporting
• 32 standards covering different aspects
• Mandatory for most companies

IFRS (International Financial Reporting Standards)

• Used for consolidated accounts
• Required for companies listed on foreign exchanges
• More principles-based approach
• Increasingly adopted globally

Financial Analysis

Profitability Ratios

• Gross Profit Margin = Gross Profit / Revenue
• Operating Profit Margin = Operating Profit / Revenue
• Net Profit Margin = Net Profit / Revenue

Liquidity Ratios

• Current Ratio = Current Assets / Current Liabilities
• Quick Ratio = (Current Assets - Inventory) / Current Liabilities
• Cash Ratio = Cash / Current Liabilities

Efficiency Ratios

• Asset Turnover = Revenue / Total Assets
• Inventory Turnover = COGS / Average Inventory
• Receivables Turnover = Revenue / Average Receivables

Solvency Ratios

• Debt-to-Equity = Total Debt / Total Equity
• Interest Coverage = EBIT / Interest Expense
• Debt-to-Assets = Total Debt / Total Assets

Accounting Software Integration

We work with:

• Tally ERP9
• QuickBooks
• Zoho Books
• Wave
• FreshBooks
• Xero
• SAP

Implementation Services

• Chart of accounts setup
• User training
• Data migration
• Customization
• Monthly reconciliation support

Audit Preparation

Documentation Required

• All invoices and receipts
• Bank statements
• Expense reports
• Payroll records
• Fixed asset register
• Inventory records
• Loan documents
• Insurance policies

Pre-Audit Review

• Trial balance verification
• Account reconciliation
• Documentation completeness
• Financial statement accuracy
• Compliance verification

FAQ

Q: What’s the difference between bookkeeping and accounting? A: Bookkeeping is recording transactions; accounting includes analysis, planning, and strategic advice.

Q: How often should I reconcile my bank account? A: Monthly reconciliation is standard; daily or weekly for high-transaction businesses.

Q: Do I need GST-compliant invoices? A: Yes, for GST-registered businesses. Invoices must show GST separately.

Q: What documents should I keep for 5-7 years? A: All financial records including invoices, receipts, bank statements, and financial statements.

Q: How do I handle bad debts in accounting? A: On accrual basis, write off as bad debt expense; on cash basis, don’t record as revenue.

Q: What’s the difference between depreciation methods? A: Straight-line divides cost equally; declining balance deducts more initially.

Industry-Specific Accounting

We specialize in accounting for:

• Manufacturing - Inventory and production accounting
• Retail - Point of sale and inventory management
• Services - Project-based accounting
• e-Commerce - Multi-channel sales accounting
• Real Estate - Property and project accounting
• Healthcare - Patient billing and insurance claims
• Non-Profit - Grant accounting and fund management

Next Steps

1. Accounting Review - We’ll assess current accounting practices
2. System Design - Recommend optimal chart of accounts and structure
3. Implementation - Set up accounting system and processes
4. Training - Train your team on recording transactions
5. Monthly Close - We handle month-end close and reporting

Get your accounting in order! Partner with FinTax24 for professional accounting services.