Accounting & Bookkeeping Services

Accounting and bookkeeping in India are governed primarily by the Companies Act, 2013 (for companies) and the Income Tax Act, 1961 (for all businesses). The Companies Act mandates that every company must maintain proper books of accounts as per the prescribed accounting standards. The Income Tax Act requires businesses to maintain books of account if turnover exceeds specified limits. Additionally, the Goods and Services Tax (GST) Act, 2017 requires registered businesses to maintain records of supplies, purchases, and output tax.

The Ministry of Corporate Affairs (MCA) oversees corporate accounting compliance through its portal www.mca.gov.in. The Income Tax Department handles tax-related accounting requirements via the e-filing portal www.incometax.gov.in. For GST compliance, the GST Council provides the portal www.gst.gov.in. These departments issue guidelines, forms, and deadlines for maintaining and filing financial records.

Engaging accounting and bookkeeping services typically involves the following steps:

1. Initial Consultation – The firm understands your business structure, turnover, and compliance needs.
2. Data Collection – You provide source documents such as bank statements, invoices, receipts, and payroll records.
3. Recording Transactions – The service provider records all financial transactions in accounting software (e.g., Tally, QuickBooks, Zoho Books).
4. Reconciliation – Bank and ledger accounts are reconciled monthly.
5. Financial Statements Preparation – Profit & Loss Account, Balance Sheet, and Cash Flow Statement are prepared.
6. Compliance Filings – GST returns, TDS returns, income tax returns, and MCA filings are completed on time.
7. Reporting – Regular reports (monthly/quarterly) are shared with you for review.

Depending on the business type, the following forms are commonly used:

• GST Returns – GSTR-1 (outward supplies), GSTR-3B (summary return), GSTR-9 (annual return)
• Income Tax Returns – ITR-3 (for businesses), ITR-4 (presumptive taxation), ITR-6 (for companies)
• TDS Returns – Form 24Q (salaries), Form 26Q (non-salaries), Form 27Q (payments to non-residents)
• MCA Forms – AOC-4 (financial statements), MGT-7 (annual return), DIR-3 KYC (director KYC)
• Other Forms – Form 16 (TDS certificate), Form 26AS (tax credit statement), Form 15CA/CB (foreign remittances)

Any business entity operating in India can avail accounting and bookkeeping services. There are no specific eligibility criteria for the service itself. However, certain compliance requirements depend on:

• Business Structure – Sole proprietorship, partnership, LLP, private limited company, or public company.
• Turnover – Thresholds for GST registration (₹20 lakh for services, ₹40 lakh for goods), tax audit (₹1 crore for business, ₹50 lakh for profession), and maintenance of books under Income Tax Act.
• GST Registration – Mandatory if turnover exceeds the threshold or if the business engages in inter-state supply.
• TDS Deduction – Required if the business makes specified payments above prescribed limits.

The timeline for accounting and bookkeeping services depends on the volume of transactions and the frequency of reporting. Typically, monthly bookkeeping is completed within the first week of the following month. Quarterly GST returns are due by the 20th of the month following the quarter. Annual financial statements and income tax returns are due by the statutory deadlines (e.g., September 30 for companies, July 31 for individuals). No specific timeline can be guaranteed as it varies with each client's data availability and complexity.

Fees for accounting and bookkeeping services vary based on the scope of work, number of transactions, business structure, and compliance requirements. Below is an indicative fee structure (government-prescribed fees are not applicable as this is a professional service):

Note: These are indicative ranges and actual fees depend on the specific requirements of your business.