Era of True Accounting

Honourable Prime Minister of India Shri Narendra Modi in his recent speech on 1st July, 2017 gave message that "??? ?? ??? ???? ????? ???” i.e. “books of accounts has to be correct”.

India is experiencing significant changes in laws and regulatory framework specially the compliance part of this. There is significant increase in filling of income tax return due to demonetisation in India. Due to GST, there has been substantial increase in indirect tax collection by government.

All business owners whether you are a local trader running one shop or a start-up company or SME, you have to keep your accounts up to date and keeping correct accounts is a paramount importance considering the growing transparency in financial, accounting and taxation system.

Businesses should keep their accounting and other compliances perfect. Businesses should not delay the maintenance of accounts till the year ends rather compliance should be completed as soon as possible.

Maintaining correct books of accounts not only facilitates day-to-day entry of accounting records and drafting of financial statements for the submission of annual returns, but also provides insight for sound business decision-making as well as efficient working capital and funds management apart from enabling you to fulfil the requirements of various laws and regulations.

Survey Results

Based on a small study conducted by us last year, we noted that book keeping which is a most important pillar of financial system of any business, is given most of the time to a person who is not trained and experienced and is not appropriately qualified for the job. Why it is so, because qualified people are not available for the accounting work so businesses have no choice but to give the book keeping to the person whosoever is available.

So the best solution is to automate few areas of accounting which is done for small businesses so that any accountant who does the work should not feel that he or she is alone and also training and knowledge should be given time to time to catch up with the change in laws and regulations. By doing this, one can easily create environment for true accounting.

About Author

Mr. Amit Sarawagi, Co-Founder of www.sahibahi.com (an initiative of Trueledger Tech Pvt Ltd) has been in the corporate industry for more than 15 years, having previously been with Big4 consulting major like PricewaterhouseCoopers (PwC), Deloitte & Touché.

His years of service in the industry have earned him extensive experience in accounting, auditing, tax advisory, start-up and business advisory which has enabled him to be of invaluable support to businesses in need of corporate advice.

Amit is passionate about combining emerging technology with professional services delivery to better serve small businesses, start-ups as well as large corporations. His vision for the near future is to create millions of employment opportunities for trained and skilled people and provide best suited support to small businesses so that they can work smoothly by complying with laws and regulations and keep growing to become large enterprises. Looking forward for suggestions on [email protected] 

Thank you