1. Introduction:
Accounting and Bookkeeping are essential financial functions for every business in India. While bookkeeping refers to recording daily transactions, accounting involves classifying, summarizing, and interpreting this financial data.
📢 Update (FY 2024-25): The MCA mandates accounting software with audit trails for companies from April 1, 2024.
🎯 Goal: Compliance, clarity, and control over finances.
🗂️ 2. Types of Services Offered
Even though there’s no license for bookkeeping, businesses can hire professionals or firms. Here are the types:
| Service | Description |
| 📘 Manual Bookkeeping | Done using registers & spreadsheets. |
| 💻 Cloud-Based Accounting | QuickBooks, Zoho Books, Tally Prime, etc. |
| 🧮 Outsourced Accounting | Done by accounting firms or CA offices. |
| 📊 MIS Reporting & Reconciliation | Custom financial summaries for management. |
| 🔐 GST/TDS Accounting | Compliant with tax reporting standards. |
🧑💼 3. Who Needs These Services?
✅ Mandatory for:
- All businesses registered under GST
- Companies under Companies Act
- Startups, MSMEs, Trusts
🟨 Recommended for:
- Freelancers & Consultants
- Small Shops or Sole Proprietors
- NGOs, Co-operative Societies
🤝 4. Why Choose a Professional Accounting Service?
📌 Save Time & Avoid Errors
📌 Stay GST & IT-compliant
📌 Maintain better cash flow
📌 Generate reports for bank loans & investors
💡 Outsourcing also helps avoid penalties and ensures smooth auditing.
📝 5. Step-by-Step Accounting Process in India
Step 1: Choose a System
Select manual, software-based, or outsourced accounting.
Step 2: Record Transactions
Daily sales, purchases, expenses, etc.
Step 3: Categorize & Post Entries
Classify into journals, ledgers, and trial balance.
Step 4: Bank Reconciliation
Match bank statements with ledger.
Step 5: Prepare Financial Reports
Balance sheet, P&L, GST returns, etc.
Step 6: Audit Trail Maintenance
Use audit-enabled software as per MCA norms.
🔗 Govt Website for Rules:🏛️ https://www.mca.gov.in
📄 6. Documents Required
📌 GST Certificate
📌 PAN & Aadhar of business owner
📌 Bank statements
📌 Sales & purchase bills
📌 Expense receipts
📌 Investment or loan documents
📌 TDS filings (if applicable)
💰 7. Cost Involved
| Business Type | Estimated Monthly Cost (INR) |
| Small Business | ₹1,500 – ₹5,000 |
| MSME with GST | ₹5,000 – ₹15,000 |
| Pvt Ltd / LLP | ₹10,000 – ₹30,000 |
| Accounting Software License | ₹3,000 – ₹12,000 annually |
💡 Outsourced services are cost-effective vs hiring full-time staff.
⏳ 8. Time Taken
| Service | Duration |
| Basic Bookkeeping | Daily/weekly |
| Monthly GST & TDS filing | 1–3 days/month |
| Year-end Financial Report | 7–10 days post FY |
| Audit Preparation | 10–20 days |
⚠️ 9. Common Mistakes to Avoid
❌ Using outdated software
❌ Ignoring expense records
❌ Mixing personal and business expenses
❌ Late GST/TDS return filing
❌ Not maintaining audit trail
💡 Solution: Always reconcile monthly & consult a CA for finalization.
📞 10. Call-to-Action (CTA)
Need professional help with your bookkeeping or accounting?
📧 Email: opriyatrendingpvtltd@gmail.com
📱 WhatsApp: +91 7588756518
🌐 Website: https://opriyatrending.in
📈 Transparent, affordable and expert support tailored for Indian businesses.
❓ 11. FAQs
Q1. Is accounting mandatory for a small business?
Yes, especially if you’re GST-registered or file ITR under presumptive tax.
Q2. Can I use Excel instead of accounting software?
Yes, but software is better for compliance, automation, and audits.
Q3. What is the difference between accounting and bookkeeping?
Bookkeeping is recording; accounting is interpreting and reporting.
Q4. Do I need to register anywhere to start bookkeeping?
No license is needed, but compliance with GST and IT laws is necessary.
Q5. Is audit trail mandatory in software?
Yes, from April 2024 for companies under MCA.
