Accounting & Bookkeeping

Bookkeeping is a formal method of recording all the financial transactions of a business during the complete financial year. Bookkeeping includes all the transaction such as Sales, Purchase, Payments & receipts, expenses during the financial year. Bookkeeping is generally done by a professional bookkeeping services provider.

Professional Utilities is one of the professional bookkeeping services provider in India with one of the finest & experienced professionals on board. Choosing Professional Utilities will give you an edge over others in the market because we ensure:

• Secrecy of data
• Expert handling
• Online services
• Access to your data
• Data integration
• Customized bookkeeping
• User-friendly interface

There are 4 types of bookkeeping systems in place viz.

• Single entry system: Traditional form of bookkeeping for a small business which has a minimum no. of transaction. Under this system, a cash sale/business expense is recorded when they are actually incurred or paid. Under the single-entry bookkeeping system, the transactions don’t match with the corresponding accounts.
• Double-entry system: It involves those businesses which have a large and complex transaction on a daily basis. This system posts a single credit transaction in one account and its debit effect is also reflected in a corresponding account which creates a balancing effect. Hence it overcomes the drawbacks of single entry system.
• Bookkeeping software: As its name suggests, it is completely based on Information & technology. There are various bookkeeping software service providers in the market which will help to prepare all the ledger/accounts. You just need to put in the information and the software will prepare the necessary documents you need.
• Virtual bookkeeping: This is the most lucrative and the most opted out method in the recent times which makes it easy & convenient to manage your bookkeeping of accounts. You don’t have to worry as to how many years of data you need to have to comply with the rules and regulations of the companies act; this will provide you with ample space to store the company’s books of accounts.

Yes, it is completely safe to find an online bookkeeping service provider and get your books of accounts safely handled by them.

Yes, it is completely safe to find an online bookkeeping service provider and get your books of accounts safely handled by them.

The process of online bookkeeping services are very easy, that you just need to find a suitable bookkeeping method to prepare and preserve your books of accounts.

functioning of bookkeeping includes the following:

• Compiling data
• Preparing invoices/receipts
• Verifying receipts
• Matching the cash/bank statement
• Income statement
• Balance sheet
• Any other financial statement

There are various reasons which justifies that online bookkeeping services outsourcing is a better option than having your own accounts department:

• Professional service
• Reduced costs
• Effective utilization of resources
• High quality & expertise
• Easy & convenient
• Reduce risk of fraud
• Assign roles & responsibility.

There are different laws under which bookkeeping has a statutory backing to its rules and regulations:

Companies act, 2013

Section 128 of the companies act, 2013 specifically mentions the books of accounts for a period of 8 years immediately preceding the current year.
Section 25 companies which are solely formed as “Non-profit companies” are required to keep books of accounts for a period of not less than 4 years.
Some other books which need to be maintained as per companies act, 2013 are; register of directors/members, register of employees stock options and other securities bought back.

Income tax act, 1961

If the sale/turnover from the business or profession exceeds INR 25, 00,000 or the income from business/profession exceeds INR 2, 50,000 in any of the 3 preceding financial years, then it becomes mandatory on the part of the assessee to maintain books of accounts.
Section 6F specifies the list of various books which needs to be maintained as per the Income tax act, 1961 viz. Cashbook, general ledger, copy of bills & receipts.
The books should be maintained for a period of 6 years from the relevant preceding year.

Yes, online outsourcing of bookkeeping is possible and it is easy, effective and convenient for all the parties associated to outsource their bookkeeping.

Yes, Bookkeeping and accounting are two different sides of a coin but one is incomplete without the other. Bookkeeping is related to identifying, recording & maintaining financial transaction whereas accounting deals with the process of summarizing & interpreting the transactions in the ledger format as specified.