Accounts
Being the backbone of any business, effective book-keeping and financial accounting are highly essential to any organization’s success. It is important for any business, be it small or big, to prepare and maintain an up to date book of accounts. Accounting is an art of recording transactions of financial nature on a daily basis and we are the artists. The payment of advance taxes, GST and TDS are all based on the company’s proper accounting. From maintaining and finalizing accounts of a company to offering custom made plans for start-ups, our trained accountants are experienced enough to deliver accurate and tax efficient accounting services. So leave it on us, as our services of outsourced accounting are designed in such a way that it helps you spend more time doing business and not accounting of the business.
Online/Cloud Accounting
Traditionally, accounting was executed using software hosted locally on a desktop computer or laptop. Cloud accounting, on the other hand, is accounting that is executed using software that is hosted remotely on the cloud – i.e., online.
This automation enables accountants/bookkeepers and their clients to save time and increase efficiency, allowing them to spend more time on business growth. This facilitates remote services and “anytime” communication, through which clients being able to access financial data and information quickly (i.e., in real time). Cloud-based software does not incur the costs associated with traditional software (including maintenance, upgrades, system administration, etc.). No more version-control data files. No more time-consuming upgrades to that one computer that has the accounting software loaded on it, or large accounting data files taking up all that space. Plus, no more data backups required.
Further, with your data of accounting organized in cloud, it would be easier for you to create and send invoices, track your overall sales and also, know how well your business is doing anytime. With online accounting on cloud, your data is always at your fingertips! Our cloud accounting software enables your accountant, colleagues or say, bookkeeper, to log in and work simultaneously with your available data online.
Importance of Maintaining Accounts Regularly
As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits! Each month or quarter we’ll do the following things – Reconcile your bank account, Generate an Income Statement, Generate a balance sheet, Clean up, your general ledger, Provide consultations based on books. These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.
Well maintained accounting systems help provide a scorecard or dashboard, so you can assess accurately where your business is standing. Moreover, you can also have an idea of where your business is going and can make the right business decisions. Not only this but also it helps provide an early warning system if something goes wrong. Business owners are often their own specialists and tend to miss out on the importance of establishing a system, which suits their business requirements from the outset. A bookkeeping system is a tool used to run your business; however, it needs to be sophisticated enough to provide you with the accurate information used for running a business and also, it should be simple for you to understand.
At JOMSH, our professionals design as well as implement accounting systems, which will help you, steer clear of the downfalls that might put your entire business at risk.
System of Maintenance of Accounting
Our best-fit system of maintenance of accounts includes;
So, whether your business is contemplating a new system of accounting or a conversion from the existing one, JOMSH has the expertise to maintain and design a system, which works for you; a system that provides you with accurate, understandable and timely information so you can focus entirely upon your business. Contact us, for professional assistance that keeps you aligned!
Key points of TDS Deduction & Payment
1 Under the Indian Income Tax Act of 1961, every company, be it a start-up or an existing one, is required to make payments to its parties, irrespective of its size and scale. TDS provisions are applicable for all types as well as size of businesses.
2 While making payments to the parties for qualified expenses or services, the Tax Deducted at Source (TDS) must be deposited before 7th of the consecutive month. For instance, the TDS deducted for the month of November, 2019 is payable on or before 7th December, 2019. TDS payments must be done carefully, after selecting the appropriate section or mode of payment. Note: The challan number for payment of TDS is 281.
3 The TDS should be deposited with the 7th day of the consecutive month and any failure in depositing is punishable under Section 271 C or/and Section 276 B. The assessee is further liable to pay an interest at the rate of 1.5% per month or part thereof. It is important to be very careful as there is no such law where the interest can be waived.
4 While making payment to the parties, it is important to ensure that the right amount is deducted. In cases where the businessman fails to pay the required amount, he/she has to pay an interest @ 1% per month or part of the month, till the date on which TDS is deducted. Thus, while making payment to the parties, it is important to ensure that the correct amount is deducted.
5 The consequence of non-compliance of TDS provisions is severe and punishable under Section 271 (C) of the Income Tax Act 1961, wherein the person can face a minimum penalty of Rs.10,000 which can go up to Rs.1,00,000. In cases where a wilful default is established, the punishment is 3 years of imprisonment that can go up to 7 years, under Section 276 B.
6 The TDS return is filed within 30th of the month succeeding the quarter. For example, the first quarter ends on 30th June and thus, the TDS return must be submitted before 30th July. Delay filing of TDS return shall be punishable in monetary terms and penalty for the same is Rs 200/- per day or TDS amount deposited whichever is low.
Due Dates of Payment of TDS & Filing of TDS Return
| Sl. | Particular | Due Dates* | Type of Event |
|---|---|---|---|
| 1 | Payment of TDS deducted under various sections of the income tax act | Before 7th day of Next Month | Monthly |
| 2 | 1st Quarter TDS Return ( 1st April to 30th June) | 31st July | Quarterly |
| 3 | 2nd Quarter TDS Return ( 1st July to 30th September) | 31st October | Quarterly |
| 4 | 3rd Quarter TDS Return ( 1st October to 31st December) | 31st January | Quarterly |
| 5 | 4th Quarter TDS Return ( 1st January to 31st March) | 31st May | Quarterly |
* for the month of March due date for payment will be 30th April