Bookkeeping & Accounting

Bookkeeping and accounting services maintain a business's day-to-day financial records — recording transactions, reconciling banks, preparing ledgers and producing financial statements. Accurate books are the foundation for GST returns, TDS, income-tax filing and audit, and are a statutory requirement for companies and audited entities.

Who needs this: Every company must maintain books under the Companies Act; businesses above the audit threshold and professionals must keep books under the Income Tax Act. Even small businesses benefit from clean books for loans and compliance.

Government portal: Not a registration — accounts feed the GST, TDS and Income Tax portals.

Indicative fees: ₹2,000–₹25,000 per month depending on transaction volume and whether GST/payroll are included.

Timeline: Ongoing monthly; year-end financials prepared before the ITR and audit deadlines.

Documents required

Sales and purchase invoices
Bank statements
Expense bills and vouchers
Payroll and TDS records
Previous year's financial statements and balances

Step-by-step process

Set up a chart of accounts suited to the business
Record every sale, purchase and expense with supporting vouchers
Reconcile bank statements and ledgers monthly
Track GST input/output and TDS for periodic returns
Produce a monthly trial balance and management reports
Prepare year-end profit & loss and balance sheet
Support the statutory/tax audit and the income-tax return
Retain books and records for the statutory period (8 years for companies)

Penalty for non-compliance

Failure to maintain books under section 44AA can attract a penalty of ₹25,000 under section 271A, apart from best-judgment assessment.

Frequently asked questions

Is bookkeeping legally required?

Yes for companies (Companies Act) and for businesses/professionals above the turnover thresholds (Income Tax Act, section 44AA). Books must be retained for the prescribed period — eight years for companies.

What is the difference between bookkeeping and accounting?

Bookkeeping is the day-to-day recording of transactions; accounting interprets those records to produce financial statements, analysis and tax computations. Both are usually offered together.

How long must accounting records be kept?

Companies must preserve books for eight financial years; income-tax records are generally kept for six years, longer where reassessment is possible.

Can bookkeeping be outsourced?

Yes — most small businesses outsource to a CA firm or bookkeeping service, which is cost-effective and ensures compliance-ready records for GST, TDS and ITR.

How does bookkeeping help at tax time?

Clean, reconciled books make GST returns, TDS filing, and the income-tax return accurate and audit-ready, and reduce the risk of notices from mismatches in AIS/26AS/GSTR data.