Importance of Accounting Outsourcing for a Company

Accounting Outsourcing is the practice of employing an independent company which will provide accounting services to the specific company. Accounting Outsourcing is often a way for accounting firms to generate business during the tax filing season. Every business firm needs to file taxes by the due date and for the concern it may require an Accounting Outsourcing Company for Payroll Services.

For Payroll and Financial Accounting Services, one surely requires a Chartered Accountant, but there are numerous points which should be considered prior to hiring a Financial Accounting Service Provider. Following are the points that should be considered.

Gather Details about Accounting Firm- Prior to selecting a Financial Accounting Company, there must be ample details about the firm and services offered by it. Internet Search- Searching on internet with regard to the Financial Accounting Firm can display authentic results for the query. The majority of the Accounting Companies have a website for customer’s ease.

Post Online Query- For solutions associated with tax filing and auditing, you can post queries on several Financial Accounting Firm’s website. There are specific sections on such website where website visitors can enter their query and benefit from immediate feedback. Take a Look on Customer’s Review- On a good Accounting Firm website; testimonials are posted by erstwhile and existing customers. Reading these testimonials is extremely helpful for a prospective client who wishes to avail the services.

Compare With The Various Cost Estimated - One of the major benefits of Accounting Firm Website is that, anybody can quickly compare charges charged by different Accounting Company. This makes it easy for any client to choose a service provider that fits his budget.

Above described factors are extremely helpful for seeking a genuine Financial Accounting Service Provider. In addition to all these considerations, security is really a major point that can’t be overlooked while using such services. Security in the context of Accounting Service also involves network security in order to ensure safe exchange of confidential data between your computers. Hence, network security is required to avoid loss of data and tampering. Accounting Outsourcing generally is a economical solution for the businesses having limited resources. Thus, Accounting Outsourcing is becoming popular in the corporate sector. Consequently, a number of Accounting Firms have emerged which are involved in providing Charter Accounting Services in Delhi, at the most affordable charges.

RNA Advisory gives advice to business owners about Importance of Accounting Outsourcing for a Company. To know more about Finance and Accounting Outsourcing Services in Delhi visit http://www.rnadvisory.com

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Online filing of Tax Audit Report

With effect from Assessment Year 2013-2014, it has become mandatory to file audit reports online by Chartered accountants using their digital signatures.

This is a good step in terms of curbing the mal practices wherein the tax audit reports were filed in Income Tax by using the membership number of Chartered Accountants. Earlier, only the membership number of professional was required to be filed with online Income Tax return in case of tax audit report and no signed copy was to be submitted to Income Tax department. As a result many fake filings have been done in the past by using the credentials of professionals without even their information.
 

A lot of representations were made by professionals to ICAI to prevent this malpractice. Finance Act 2013 has come up with the provision of online filing of audit reports to put a stop on this.

The detailed steps to file audit report online are as follows:
 

• Every professional is required to register himself/herself on the Income Tax online filing portal i.e. https://incometaxindiaefiling.gov.in/ under the heading Tax Professional. Select the heading “Chartered Accountant” and click “Submit”

• Fill in the details viz. membership number, date of enrollment, Name, Date of Birth, PAN etc.
  After registration, a link to activate the on the email ID. The user ID of professional will be “ACRA” followed by his membership number for Example: ACRA123456.

• The next step is to be taken by the assessee whose accounts are required to be audited by the CA. Assessee will login to his account and add CA in the “Add CA “ option. Enter the membership number of CA. His name will appear if he is registered as a Tax Professional

• Tax audit report needs to be filled by CA from the utility available in Income Tax portal. The signed copy of Tax audit report needs to be attached with the same and xml is required to be uploaded from the login of professional.

• The tax audit report submitted by CA will be considered for final submission only when the assessee login from his account and approve the tax audit report. The assessee has right to reject the report also.

The process of filing including approval for audit under section 44AB has to be completed on or before 30th September, 2013.

Non Compliance of provisions of getting the accounts audited under section 44AB shall attract penalty under section 271B. The liability of penalty is half percent of turnover or Rs 150,000 whichever is less.

“RNA Advisory Pvt Ltd”, are an eminent firm engaged in rendering excellent services for Accounting, Auditing, Tax and Financial & Registration Related Services (SSLI Zone). These services are in conformance with the set rules and guidelines of the industry so as to attain maximum client satisfaction. For further query shoot an email: contact@rnadvisory.com

Content Source: http://www.rnadvisory.com/news/online-filing-of-tax-audit-report.html

 

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Few basic things to be kept in mind while starting a company

Few basic things to be kept in mind while starting a company:

Shareholders and Directors: A Private Limited Company can have maximum of 50 shareholders and should have minimum 2 shareholders at a time. A Public Limited Company has no restriction on the maximum number of shareholders and but minimum number of shareholders must be 7.

Memorandum & Articles of Association : The Memorandum of Association (MOA) states the main, ancillary or subsidiary along with other objects of the proposed company. The Article of Association (AOA) covers the rules and procedures for the routine conduct of the proposed company, the authorized share capital of the proposed company and also the names of its first or permanent directors. Thereafter, both MOA and AOA are required to be stamped.

A stamp duty, depending on the authorized share capital, is to be paid on both.

Share Capital : Shares should be expressed in fixed amount. Shares like “No par value” or “bearer” are not permitted and the shares to be subscribed should be expressed in Indian rupees.

Accounts & Auditors : Each company is suppose to appoint an auditor annually at its AGM. The auditor must be qualified by virtue of the Institute of Chartered Accountants of India Act 1949 and should be completely independent of the concerned company. The audited accounts of the concerned company serve as a tool for various stakeholders like creditors, investors, bankers and revenue authorities.

Public Filings: The names and all the required personal details of the directors and secretary, share capital, register of charges, registered office address, and other such particulars should be filed with the Companies Registry for any public inspection upon incorporation and if there is any change thereafter.

Annual Meetings: An Annual General Meeting (AGM) is mandatory to be held once in every financial year and not more than 6 months after the end of the financial year. For a new company it is not required until 18 months of its incorporation.

Documents required to be executed for incorporation
The following documents are required to be executed (signed) before they are submitted to the ROC:

MOA and AOA - These are required to be executed by the promoters in their own hand in the presence of a witness in quadruplicate stating their full name, father’s name, residential address, occupation, number of shares subscribed for, etc.

Form No. 1 - This is a declaration to be executed on a non-judicial stamp paper of INR 20 by one of the directors of the proposed company or other specified persons such as Attorneys or Advocates, etc. stating that all the requirements of the incorporation have been complied with.

Form No. 18 - This is a form to be filed by one of the directors of the company informing the ROC the registered office of the proposed company.

Form No. 29 - This is a consent obtained from all the proposed directors of the proposed company to act as directors of the proposed company. (Not required in case of private company).

Form No. 32 - This is a form stating the fact of appointment of the proposed directors on the board of directors from the date of incorporation of the proposed company and is signed by one of the proposed directors.

For more information about Company Registration in Delhi follow this link : www.rnadvisory.com/companyformation.html

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