Skip to Content

General Accounting & Bookkeeping 

Who Needs This?

Every business — whether startup, SME, LLP, company, or sole proprietorship — needs proper bookkeeping and accounting to maintain financial discipline, comply with tax laws, and make informed business decisions.

Applicability Criteria ​

  • Mandatory under Law:

    • Companies & LLPs – required to maintain proper books of accounts under the Companies Act, 2013.

    • Firms & Proprietorships – required for tax audits under the Income Tax Act, if turnover crosses prescribed thresholds.

    • GST-registered entities – must maintain books for 6 years from relevant FY.

  • Recommended for All Businesses: Even small and growing businesses benefit from professional accounting for cash-flow monitoring, investor confidence, and loan applications.

Why It Matters

Accurate books of accounts:

  • Provide clarity on profitability and financial health.

  • Ensure compliance with Income Tax, GST, and MCA filings.

  • Help in budgeting, cost control, and business planning.

  • Build credibility with banks, investors, and regulators.

Process of Bookkeeping & Accounting

  1. Collection of financial data – invoices, bank statements, vouchers, receipts, payroll records.

  2. Recording of transactions in accounting software (Tally, Zoho Books, QuickBooks, Odoo ERP, etc.).

  3. Bank reconciliation to ensure accuracy.

  4. Classification into ledgers (income, expense, assets, liabilities).

  5. Preparation of trial balance and financial statements (Profit & Loss, Balance Sheet, Cash Flow).

  6. Periodic reporting for management review and statutory compliance.

Documents Required

  • Sales & Purchase Invoices.

  • Expense vouchers and receipts.

  • Bank & Cash book statements.

  • Payroll details.

  • GST returns, TDS challans, and tax records.

Frequency

  • Daily/Weekly entries (depending on volume).

  • Monthly closing for management review & compliance.

  • Quarterly/Annual financials for statutory filings and audit.

Penalty for Non-Compliance

  • Under Companies Act: Penalty of up to ₹5 lakh for company and ₹50,000 for officers if proper books are not maintained.

  • Under Income Tax Act: Penalty of ₹25,000 for not maintaining prescribed records (u/s 271A).

  • Under GST: Penalty of ₹10,000 or tax due (whichever higher) for improper record keeping.

How Law to Corporate (LTC) Helps

  • Setting up proper accounting systems (manual or software-based).

  • Complete bookkeeping services (daily, monthly, annual).

  • Preparation of financial statements as per accounting standards.

  • Reconciliation of GST, TDS, and bank data.

  • End-to-end

  • accounting outsourcing solutions


  •