Importance Functions of Chartered Accountants in India

With the rise in economic prosperity, there is a growing importance of chartered accountant services in India.  A Chartered accountant in India works on a wide number of job roles ranging from monitoring, reviewing and reporting various financial activities to providing advice on tax legislation and also business advancement advice. A certified public accountant is at the helm of operations and handles all kinds of financial affairs with alacrity such as,

Managing

Chartered Accountants work in a number of job roles such as powering your business to a strategic direction, solving a number of problems, and bringing about a change.

Reporting

Chartered Accountants also gauge the financial performance of a company or accounting firms in Chennai or anyplace else.

Advising

Chartered Accountants are financial advisors in the real sense of the word and provide a number of services to different businesses either in the capacity of a consultant or as a practicing partner.

Different Roles of Chartered Accountant

The following are the different job roles that an accounting service in Chennai or different cities of the country works in! 

Tax accountant

 Tax accountants formulate a number of corporate and personal income tax statements and make different tax strategies.

Management accountants

Chartered accountants are in so many ways also management accountants who work in tandem with a marketing and finance personnel to develop new business. Management accountants have a much wider job role to play in companies that involves capital budgeting and line of business analysis.

Financial accountants

For a financial accountant, there is not a dull day at the office as their job roles are as varied as they come. They make important financial decisions that involve important decisions such as mergers and acquisitions and the very next day they meet up with customers or suppliers to form a brand new account and converse about business. 

Auditor

 Auditing work is highly computerized and depends on the process of sophisticated random sampling methods. Auditing allows Chartered Accountants to work in a number of sectors. A qualified accountant can help you in auditing. A computer system cannot help with the auditing process in its entirety. Auditing requires a perfect blend of sagacity and a skeptical attitude. Also, the process of auditing needs rapid evolvement, and this requirement can only be fulfilled by an auditing accountant.

Budget analyst

Budget analysts manage and develop organization's financial plans. Budget analysts require quantitative skills and require people skills so that they negotiate better.

Keeping abreast of financial statements can help track shortages in cash flow and loss of margins. A qualified accountant can help you in this regard, and prepare all your accounts with a lot of dexterity and promptitude.

With the world economy taking giant strides towards progress, a business can only thrive with the right financial advice. However, a recorder is not there to only keep your business buoyant but also help figure out ways to increase the margin of profits and thus help your company grow.

The role of a chartered accountant in Chennai or anywhere else for that matter changes according to the changing needs of companies. While your business flourishes, the requirement of taxes and the procedures will undergo a change as well. In accordance with changing regulations, a registrar can come up with a tax strategy to reduce the amount of taxes needed to be paid to the government. Since tax laws are always changing, you will definitely need the services of an able CA to handle the management of accounting techniques and plan and prepare according to the State’s observation of regulations.

It is absolutely essential to keep track of how a particular business is progressing, a bookkeeper helps regulate that, and the best-chartered accountant firms inChennai help you to track your business with aplomb.

Today, a registered accountant can not only aid a company in the financial scheme of things but also be regarded as advisors, strategists, and able administrators.

Top Reasons Why You Must E-File your Taxes on Time

The Income Tax Department makes it mandatory for everyone to file income tax return if your gross total income is more than Rs 250,000 in a financial year (before allowing deductions under section 80C to 80U). This limit is extended to Rs 300,000 for senior citizens who are more than 60 years old, but is less than 80 years old) and the amount increases to 500,000 for super-senior citizens ( that is more than 80 years old). However, you can still file your income tax returns even if your income is less than the maximum exemption limit. 

Still looking for reasons to e-file your income tax returns? Check out the below reasons,

1 ) Carry forward of loss

When the individual or a firm incurs business losses such as speculative and non-speculative or capital losses (both short-term and long-term) it cannot be shown as an exemption to extend and carry forward last year’s losses. However, a person can benefit only if he/she files one’s income tax return.

2) Income tax refund

Tax return filing is not merely fulfilling one’s duty towards the nation but to claim an income tax refund. 

3) Avoiding penalty

Under the section 234F of the Income-Tax Act, if a person is unable to file his returns by July 31 then he is supposed to pay a fee of Rs 5000 if the return is furnished before 31st December. The fee would increase to Rs 10,000 if it is filed after 31st December. However, if the total income of the person does not cross the Rs 5 lakh marker then the money should not cross Rs 1000.

4) Legal sanction to your income

The income of the assessees must be audited according to the IT Act, the date of filing the return would be 30th September.  If you regularly file your returns you will give a stamp of legal sanction to your income even if you are not supposed to pay the taxes for the year.

5) Your loan would be easily processed

You need to submit your income tax returns to process different types of loans such as home loans, educational loans and so on. You need to file your returns to processes any visa. Even credit card companies require your proof of tax returns before providing a card.

6) Registration of immovable property

A few states demand your income-tax return of the last three years for registering immovable property. Also, a legal sanction to income taxable or otherwise helps you to prepare for the property owned.

Filing income tax return helps you perform responsibilities as a citizen and also ensures smooth governance. Also, it shields you from the hassles of being served a show-cause notice from the I-T department. Tax consultantsin Chennai or consultants in other cities of the country help you return files on time.

Audit Services - What is Audit & Assurance?

Auditors have to assess a set of company accounts to find out if they are the right representation of the company's affairs on the accounts date.

The audit provides the comfort or assurance to the users of the accounts that an auditor or an independent third party has carefully examined the accounts and agrees with them.Each and every individual line in a set of published accounts needs to be tested. Auditors actually do not test every transaction that notches up that figure. They prefer to perform two kinds of testing: these are

Substantive Testing and Control testing

Substantive Testing

When it comes to substantive testing, an auditor is supposed to select a sample of transactions that come up with a certain figure. For example, if we are testing the sales figure, you may select a number of sales and may want to see the evidence of these sales. This may include copies of cheques from customers, the purchase orders from customers or the may lead to correspondence or contracts with customers. Auditors will get to test it till they feel they are comfortable that the sales figure is correct.

Controls Testing

A control testing is one process which helps a company to reduce the risk of error or fraud. Each payment is each payment requires two signatories, one person fills in the cheque and the other person signs it.In companies with good controls exist, auditors can test the control rather than a sample of transactions.There are some common misconceptions about misunderstandings about auditors, they are as follows

Auditors in Chennai or anywhere else in India do not do the following things,They do not look for fraud, although they watch out for it.They do not check every transaction - just the 'material' ones.

An audit report is provided with every published account and the auditors also express their opinion on the accounts and bring to notice any issues they had with their audit. Auditors actually do not work for the client company, they rather work on behalf of the company's shareholders. The shareholders then decide the next auditor of the company.

Internal & External Audit

A company will also hire internal auditors to audit itself. This helps them to maintain a high standard of control right inside the organization and also helps reduce the load of work which needs to be sorted by the external auditors.

An external auditor, say an auditor firm in Chennai and other cities of the country,  on the other hand, is another independent firm that comes in and lessens the workload and carries out the audit work on behalf of the shareholders and the company, in other ,words,  helps them with chartered accountant services

These are some of the auditing services which can help you get rid of your financial woes and help you get all your financial problems in order with internal auditing as well as external auditing. If you are finding it tough to grapple with the existing financial situation of your company, consider getting help from a renowned audit firm in your city for best results.

How Do you Start a Tech Startup? The Top Steps to be Taken to Begin a Tech Startup

Are you contemplating about leaving your day job and set up a startup instead? It is time you came to a conclusion and chose one over the other, weighing the risks and start with these effective tips. 

Do a thorough market research

Yes, conducting a thorough research should be on the anvil to find out whether your idea is worth all the efforts you put in. Write it all down and keep it in front of you. You will be more aware of the problems and how can you solve the same.  

Secure intellectual property

Securing an Intellectual property (IP) signifies that you can own the rights to a created product. Examples are patents, copyright, and trademarks. 

Finalize the branding

Branding is not just choosing a name but it represents you and your ideology. Do secure your website domain name and other marketing materials, while you do so. 

Incorporation

 Incorporating is the process of transforming your business into a legal entity and deciding how it will be structured. Usually, start-ups are transformed into an LLC, a C corporation, or an S corporation. Both LLCs and S corporations enjoy tax exemptions, while when it comes to C Corporation it is considered a taxable entity.

Choosing a co-founder

A proper support is an ideal way to execute your execution. Investors examine the funding team first before considering the idea when going for an investment. So finding the right co-founder is really important. 

Pick a workplace

Picking up the right workplace is more important than most people give credit for.  Different types of work environment suit different types of working styles best. While some founders choose to work from home right at the start to save money, while others choose to rent at a coworking space, do whatever suits you best. 

Raise capital

 Financial investment is very important for the company.  The right resources prove to be of enormous help, consider your capital investments and understand them before you take it to the next level. Decide on the amount of money you want to raise and how exactly it will impact your startup. Your next step will be to decide how much to raise and how will you raise the same, whether it will be through crowd funding, get it from an angel investor or via a traditional VC firm, then go for the kill. 

This list may not prove to be all-inclusive, just a few ideas around which you can work around, and your mode of work will be much individualized and you should consider the ones which suits you and your team and of course you can add a few of your own, when it comes to starting a start-up there is no one size fits all guideline. Get help from businessconsultants in Chennai or charteredaccountants in Chennai or anywhere else for that matter to set the ball rolling.