Accounting rules every new company should abide by

Every Startup needs to provide information regarding its financial estimates to banks, investors or lenders to obtain funds in return from them. Accounting helps the business to make a business plan which includes estimated monthly expenditure, economic forecast, projected rate of growth of the Startup. This information is really important for a Startup to lure more and more investors to invest in their idea. The investors also ensure that the entrepreneur has a reliable projection of its company’s financial expectations. The following are four practices every start up shall give immense importance to.

GST Registration Online:

GST is Goods and services tax which has substituted the old tax regime, where the ultimate tax burden and its cascading results have been lessened, with a concept of ONE INDIA ONE TAX.Under this model there is a single indirect tax, i.e GST which substitutes various indirect taxes levied on goods and services from manufacture till consumption.Under this tax regime the concept of origin based taxation has changed to consumption based taxation (or destination principle).Any person carrying on any business who has a taxable supply of over Rs.10 lacs in case of Northeastern States Of India and Rs. 20 lacs in the rest of India would be required for registration of GST in India. A mechanism is available for voluntary GST registration to help claim ITC(Input Tax Credit). It must be obtained under 30 days of exceeding the Rs.25 lacs turnover limit. A procedure would be announced for migrating the VAT or service tax registration as a GST registration.

GST Return Filing:

 An investor asks for GST Return Filing as it gives them an idea of your compliances status and revenue status of your private limited company registration or llp registration. It will ascertain your customers that your returns are filed regularly.

Record all Expense and Revenues of the Company:

Accounting must be given prime importance in any business entity as it is most required, especially for controlling and for providing financial reports at the end of the year. Accounting will help a Startup to determine its productivity and its profit from the initial stages of the company. This provides entrepreneurs a method for maintaining accounting information. The accountant hired by the company will keep track of the money spent for business use as well as for personal use, this will help in strategizing on how the money can be saved. In the initial stages of a Startup, the company must hire consultants or interim CFOs to maintain simple accounts rather than spending more on in-house professional resource.

Other Compliances:

One thing which investors avoid with a barge pole is investing in a company which has its legal compliances not in place.

TDS return filing,

Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting prescribed percentage. Following are some of the compliances you need to take care of!

GST Return filing,

The following are included:


GSTR 3B is a simple return form introduced by the CBEC for the month of July and August. You have to file a separate GSTR 3B for each GSTIN.

2. GSTR1

GSTR 1 is a monthly return that should be filed by every registered dealer. It contains details of all outward supplies i.e sales. GSTR 1 contains details of all the sales transactions of a registered dealer for a month.

3. GSTR2

GSTR-2 contains details of all the purchases transactions of a registered dealer for a month.

4. GSTR3

GSTR-3 captures the aggregate level outward and inward supply information which will be auto populated through GSTR 1 and GSTR 2.

ROC Compliances.

The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act 1956 and Companies Act, 2013.

Most successful business owners understand that if they really want to manage their business, they need to get comfortable with the fundamentals of bookkeeping and accounting. A lot of Entrepreneurs who handled bookkeeping and accounting usually discover they weren’t doing nearly as well on their own as they thought they were.

Gapeseed offers recognized bookkeeping outsourcing services solutions that support end-to-end functions of bookkeeping services for Small Business & start-ups.

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