1. Ensuring Financial Accuracy

Accurate financial records form the backbone of any successful business. Mistakes in accounting can lead to financial losses, missed opportunities, and even legal trouble. Professional accountants ensure precise bookkeeping and reporting, offering a clear picture of your company’s financial health.

Benefits of accurate financial records:

• Elimination of costly errors
• Streamlined tax filing and compliance
• Better financial forecasting

Finaccle’s expertise in Surat guarantees meticulous accounting services, ensuring your books are error-free and updated. This helps businesses focus on growth without worrying about financial discrepancies.

2. Strategic Financial Planning

Growth doesn’t happen by chance; it requires a well-thought-out financial strategy. Professional accountants analyze your financial data to create plans that align with your business goals. From budget management to investment planning, their guidance ensures your finances work for you.

Key advantages:

• Identification of growth opportunities
• Effective cost management
• Long-term financial sustainability

With Finaccle’s customized financial strategies, businesses in Surat can confidently navigate market challenges and seize new opportunities.

3. Tax Compliance and Optimization

Tax regulations are complex and ever-changing, making compliance a daunting task. Non-compliance not only results in penalties but also damages your reputation. Professional accountants stay updated with the latest tax laws, ensuring your business remains compliant while optimizing tax liabilities.

Why tax services matter:

• Minimized tax burdens through legal avenues
• Timely and accurate filing of returns
• Reduced risk of audits or penalties

Finaccle’s tax solutions in Surat ensure businesses save money and remain compliant, allowing you to focus on operations rather than paperwork.

4. Time and Resource Efficiency

Managing finances in-house can drain your time and resources. Hiring, training, and maintaining a dedicated accounting team adds to operational costs. Outsourcing to professionals not only saves money but also gives you access to advanced tools and expert knowledge.

Benefits of outsourcing accounting services:

• Cost-effective solutions
• Improved focus on core business areas
• Access to cutting-edge accounting technologies

Finaccle’s end-to-end accounting services in Surat help businesses maximize efficiency, ensuring resources are directed towards growth-driven activities.

5. Better Decision-Making with Financial Insights

Business decisions are only as good as the data they’re based on. Professional accountants provide actionable insights by analyzing your financial data, helping you make informed decisions. From profitability analysis to cash flow management, they ensure you’re always a step ahead.

How financial insights help:

• Improved resource allocation
• Identification of cost-cutting areas
• Enhanced forecasting and planning

With Finaccle’s data-driven approach, businesses in Surat can confidently make decisions that lead to sustainable growth.

6. Building Credibility with Investors

For businesses seeking funding or partnerships, professional accounting services are non-negotiable. Accurate financial reports and transparent processes build trust among investors and stakeholders, showcasing your business’s potential and stability.

Investor confidence boosters:

• Transparent financial statements
• Reliable business plans
• Accurate financial projections

Finaccle’s accounting expertise ensures that businesses in Surat present a compelling financial case to secure investments and partnerships.

7. Staying Ahead in a Competitive Market

The business world moves fast, and adaptability is key to survival. Professional accountants monitor industry trends and provide insights that keep your business competitive. They help you benchmark performance, optimize costs, and stay agile in a rapidly changing market.

Key takeaways:

• Timely adaptation to market changes
• Performance benchmarking
• Strategic growth planning

Finaccle’s industry-specific solutions empower Surat businesses to stay ahead of competitors and meet evolving market demands.

8. Reducing Stress for Business Owners

Entrepreneurs wear many hats, but financial management shouldn’t be one of them. By outsourcing accounting tasks, business owners can focus on their core competencies, such as innovation, customer engagement, and growth strategies.

How professional accounting reduces stress:

• Offloads complex financial tasks
• Reduces the risk of errors
• Frees up time for strategic initiatives

With Finaccle as your financial partner, businesses in Surat can delegate financial responsibilities with confidence, knowing their finances are in expert hands.

Why Choose Finaccle?

As a leading provider of accounting services in Surat, Finaccle offers tailored solutions to meet the unique needs of businesses. Whether you’re a startup, SME, or established enterprise, Finaccle’s comprehensive range of services ensures accuracy, compliance, and growth-focused strategies.

What sets Finaccle apart:

• A team of experienced accounting professionals
• Advanced tools and technology for precise reporting
• Personalized services for businesses of all sizes

Take the Next Step Towards Growth

Professional accounting services are more than just a support function—they’re a strategic partner in your growth journey. By choosing Finaccle, businesses in Surat can unlock their full potential, navigate financial complexities, and achieve long-term success.

Ready to grow your business?
Contact Finaccle today and discover how our accounting services in Surat can transform your financial management. Let’s work together to build a brighter, more prosperous future for your business.

Introduction

In today’s fast-paced world, mastering finance management is crucial for achieving stability and growth. Whether you’re starting your career or planning for retirement, effective money management can pave the way to a secure and prosperous future. But what exactly does it entail, and how can you implement it in your daily life?

This guide will break down the essentials of personal Finance Management and provide practical strategies to manage your money wisely.

Understanding Finance Management

Finance Management refers to the strategic planning, organizing, directing, and controlling of financial activities. In simpler terms, it’s about knowing how much money you earn, how you spend it, and how you plan for the future.

Key aspects of Finance Management include:

• Budgeting: Creating a plan for your income and expenses.
• Saving: Setting aside money for future needs.
• Investing: Growing your wealth through stocks, bonds, real estate, and more.
• Debt Management: Keeping debts under control and paying them off strategically.
• Retirement Planning: Preparing financially for life after work.

Steps to Effective Personal Finance Management

1. Set Financial Goals

The first step in Finance Management is defining clear and realistic financial goals. These can be:

• Short-term goals (saving for a vacation, paying off small debts)
• Mid-term goals (buying a car, saving for higher education)
• Long-term goals (retirement, purchasing property)

2. Create a Budget

A budget is a cornerstone of effective Finance Management. It helps you:

• Track your income and expenses
• Identify unnecessary spending
• Allocate funds for savings and investments

Consider using the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment.

3. Build an Emergency Fund

No Financial Management plan is complete without an emergency fund. Aim to save at least three to six months’ worth of expenses. This fund acts as a financial cushion for unexpected events like medical emergencies or job loss.

4. Manage Debt Wisely

Debt can derail your Finance Management efforts if not handled properly. Strategies for like Loan Assistance to consolidate loans and reduce interest rates:

• Prioritizing high-interest debt (credit cards)
• Consolidating loans to reduce interest rates
• Avoiding unnecessary borrowing

5. Invest for the Future

Investments play a crucial role in Finance Management. Explore options like:

• Stock market investments
• Mutual funds
• Real estate
• Retirement funds (401(k), IRA)

Diversifying your investments reduces risk and maximizes returns.

6. Monitor and Adjust Your Plan

Finance Management is not a one-time activity. Regularly review your financial plan, adjust your budget, and reassess your goals. Life changes—like marriage, a new job, or a baby—may require you to tweak your strategy.

Common Mistakes to Avoid in Finance Management

• Ignoring Budgeting: Without a budget, you may overspend or under-save.
• Overlooking Insurance: Health, life, and property insurance protect you from unexpected financial burdens.
• Living Paycheck to Paycheck: Aim to build savings, even if it’s just a small amount each month.
• Not Investing Early: The sooner you invest, the more time your money has to grow.

Final Thoughts

Effective Finance Management is a continuous journey, not a destination. It requires discipline, planning, and adaptability. By setting goals, creating a budget, saving, investing, and reviewing your financial strategies, you can achieve financial security and peace of mind.

Start your Finance Management journey with Finaccle today and take control of your financial future!

Choosing the right name

•  The first stage in the registration process is to come up with a unique name for the firm. The name must not be confusingly similar to any brand name or corporate name already in use.
•  Finding a name that is both original and relevant to their business aims and objectives can be difficult for many businesses.

Obtaining Digital Signature Certificates

• The next step in the registration procedure is to get digital signature certificates (DSCs) for the potential company directors. This is an essential requirement for submitting the application for private limited company registration.
• Getting DSCs can be difficult for many business owners, especially if they are not tech-savvy. But this procedure can be simpler if the entity hires the entity who provides legal services.

Obtaining Director Identification Number (DIN)

• A Director Identification Number (DIN) must also be obtained by the potential directors of the organisation. The Ministry of Corporate Affairs assigns this unique identifying number. The DIN is necessary for all interactions with the Registrar of Companies (ROC) as well as the submission of numerous papers pertaining to the company.

Document preparation

• The Memorandum of Association (MOA) and the Articles of Association (AOA) are two documents that must be drafted as part of the private limited company registration procedure. These documents provide a summary of the company’s goals, authority, and regulations.
• Many entrepreneurs find preparing these documents difficult, especially if they are unfamiliar with legal terms. But this procedure can be simpler if the entity hires the entity who provides legal services.

Filing the application

• Once all of the documents are ready, the application for private limited company registration must be filed with the Registrar of Companies. This can be a time-consuming process, and any errors or omissions may result in application delays or rejection.
• To avoid such errors and omissions, it is advisable for the entity to hire an entity who provides legal services for easy and errorless submission of private limited company registration application.

Compliance with regulations

• After the company registers, there are a number of rules and compliance requirements that the company must follow, including obtaining a PAN and TAN, adhering to GST regulations, and keeping accurate accounting records. Many business owners find it difficult to adhere to these rules, especially if they are unfamiliar with the legal and accounting standards.
• In such cases it is advisable for the newly-incorporated company to hire a Chartered Accountant who can guide them with the timely and accurate compliance of company act, income tax act, GST regulations, etc.

Therefore, it should be noted that forming a private limited corporation might be difficult and complicated. Entrepreneurs can overcome these difficulties and effectively incorporate their business by studying the procedures and getting professional assistance. Compliance with all regulations and criteria is critical to ensuring that the organisation is legally compliant and runs effectively.

We, at FinAccLe provides detailed assistance that will ensure the effective and timely private limited company registration. 

These interactions are condensed in the drafting of financial summaries, which include the accounting report, expenditure exposition, and income proclamation, which document the organization’s working execution over a certain time.

Financial Accounting is used to report financial transactions to stakeholders in an acceptable and flexible way to the users of Financial Statements such as Company management, Competitors, Customers, Employees, Government, Investment Analysts, Investors, Lenders, Rating Agency, Suppliers etc.

Financial Accounting Concepts

• Accrual Concept : Financial Accounting can be performed on either an accrual or cash basis. Accrual foundation is often used. A company may also utilize a mix of the two. The cash foundation of accounting requires transactions to be recorded only when there is a cash flow. However, in accrual accounting, a transaction is recorded when it occurs and revenue is recognized. Once an organisation has decided on a system, whether cash or accrual, it should stick to it.
• Economic Entity Concept : The economic entity assumption is an accounting approach that isolates the business’s transactions from its owner and therefore  no personal interactions should be recognised in the books of accounts.
• Going Concern Concept : The going concern assumption is a fundamental Financial Accounting theory that states a company’s financial stability is sufficient to keep it in operation in the long run, or at least beyond the next Financial period. Profits can be earned in the future because an entity does not intend to or is not compelled to liquidate the same.
• Materiality Concept : The purpose of preparation and presentation of Financial Statement should be to reveal every material transaction or exchange. Material exchanges are those transactions that, when removed, can alter a speculator’s analysis of the firm.
• Conservatism : The conservative principle is the broad idea of recognizing costs and liabilities as soon as feasible  and when the outcome is uncertain, but only recognizing income and assets when they are certain to be received. Accounting conservatism encourages managers to exercise professional judgement, but it also leaves loop hole for some manipulation of accounting entries.
• Matching Concept : According to the matching concept, businesses should match relevant income and spending in the same accounting period. They use this to match an asset’s or revenue’s expenses to its economic benefits. Recognizing costs in wrong accounting period can drastically affect the financial statement. A company’s financial status may be erroneous as a result. The matching concept assists firms in avoiding understating or overstating it’s profit for a given period.

There are several Financial Advisory and Accounting Firms that provides the services of the Financial Accounting online. These firms help the entity with their accounting tasks and also provides several other services like E- Commerce Accounting Services, Flexible Accounting Solutions, Budget Forecasting, Break-even Point Analysis, Accounting Supervision, etc. so that the entity can concentrate on their core areas of expertise and take their businesses to the greater heights.

Access to Accounting Expertise and Experience : When you redistribute work, you enable an organisation to assign a small group of specialists to focus on your organization’s work. This is a benefit because you can ensure that bookkeepers with the necessary skills are managing your organization’s financial activities. This provides a few benefits to your company. One of the most important is that obtaining services of Financial Accounting Online is inexpensive. You don’t have to be concerned about contracting or preparing books of accounts to handle specific work for your organisation.

Focus on Revenue Generation and Wealth Creation : Accounting and funding are unquestionably critical issues for any organisation. It is critical to understand where your organization’s income comes from and how it is spent. Failure to track such data can have a negative impact on your organisation and even influence issues such as benefits and edges. Nonetheless, there is no doubt that devoting significant time and effort to such issues can have a negative impact on your organization’s ability to focus on revenue. An insightful decision is to consider outsource the Financial Accounting Online. This is fundamental because it can free up assets to generate income. This includes R&D, marketing/advertising, and customer service in particular. When your organisation can put those procedures in place from the start, it will be less difficult to develop the business and lift benefits. The costs of redistributing Financial Accounting Online are well worth the ability to produce more pay and remain aggressive in business promotion.

Concentrate Resources on Outsourced Work : No organisation on earth has an unlimited supply of resources for projects like accounting and accounting-related ones. As a result, if they run into difficulties with certain of those tasks, it may have a detrimental impact on the level of service they provide to their clients. Therefore, it is sometimes more practical to re-appropriate the task than to complete it internally.

Spend Less on Finance and Online Accounting Software : If an entity decides to complete the Accounting and Financial tasks online then they might have to invest huge amount of funds in building Finance and Accounting software in order to complete it in most efficient manner. In such instances the entity should consider to outsource the services of Financial Accounting Online.

Benefits of availing several other services offered by the F&A Firms : Apart from Book keeping, if one outsource the services of Financial Accounting Online, they can avail several other services by minimal payment of funds like E- Commerce Accounting Services, Flexible Accounting Solutions, Budget Forecasting, Break-even Point Analysis, Accounting Supervision, etc. Hence, enjoy the expertise and experience of the Accounting and Finance Professionals and outsource the services of Financial Accounting Online.

Under the Companies Act, Private limited company must be registered. Online company registration is another option for private limited companies. Like other companies, private limited company are required to submit financial statements each fiscal year.

Why should I bother when there are so many rules that need to be followed while creating a private limited company? However, there are a lot of benefits of private limited company as well.

Advantages of Private limited company

1. Members : To establish a private limited corporation, there must be at least two members.

Members other than youmight be able to broaden your business idea and move it in the proper direction. They might also be able to provide you with the things you lack, such as the right resources, people, money, or intelligence. Additionally, this person might bring in contacts, which means you’ll be able to contact more people than those on your contact list.

There is now a limit to it. You are limited to 200 members.

2. Limited Liability : Each shareholder or member’s liability is limited at the amount of their investment. As a proprietor, you only enjoy the advantages, earnings, and assets of the company, and you bear full responsibility for all of its losses, debts, and liabilities. If you took a loan for this business and, you weren’t able to pay it back or any other loans you had taken out for it, YOU would still be responsible for paying these obligations, regardless of how well the firm did. If the business assets are insufficient in this situation, the creditor may also seize your personal assets, such as jewellery, real estate, and other possessions, in order to fully satisfy the obligation. Members of a Private limited company are only required to pay their own part of the unpaid share value if the company takes out a debt that it is unable to repay. This means that even if the debt or credit amount is still owed by the company, you are not liable for it if you have no balance due on the number of shares you own.
3. Perpetual Succession : A company continues to exist in the eyes of the law even in the event of the death, insolvency, or bankruptcy of any of its members since a corporation is a separate legal entity. Your firm becomes a different legal entity after Private limited company Registration and YOU (the founder, member, and director) are distinct individuals with regard to this business. Therefore, your firm acquires a Separate Legal standing once you register or incorporate it with the Ministry of Corporate Affairs (MCA). As a result, neither the Company’s existence nor that of its founders or members is reliant upon their lives. The corporation is unaffected even if the members, or even all of the members, go bankrupt or become insolvent.
4. Capital : This capital that you invest in the business is a LIABILITY of the business rather than an asset. And the term “Liability” refers to something that a business DOES NOT OWN but will someday have to pay back. This capital sum will be returned to you if the company decides to close its doors in the future or experiences financial trouble. This means that even if the company has losses, you won’t be affected by them, unlike in a private or partnership business where you can even suffer larger losses than the Private limited company.
5. Name : The name you choose for your company serves as both its identity and a business name. Therefore, be sure to pick a Name that is memorable, unusual, and unheard of. Make sure it does not sound identical to any other corporate entity or product name because it may be the Brand name by which many people will recognise your business (or product or service). You must submit an application on the MCA website if you want to learn the specifics of obtaining a Name for your Company. This name is only reserved for you for 20 days if they accept it. Which implies that you must take the online private limited company registration this time frame.
6. Separate Ownership and Management : Because Management and Ownership are separated in a private limited business, managers are accountable for both the company’s success and failure. You can always designate someone who is more qualified to run the firm as a Director. This individual will be involved in and responsible for the company’s growth as well as for the earnings you make as a shareholder.

There are several Financial and Legal Advisory firms that provides Onlineprivate limited companyregistration services. So, reap the benefits of private limited company and get online private limited company registration in surat India for your entity.

One Person Company, often known as OPC, is a traditional idea, much like a proprietorship firm, where one person owns and operates the entire company. The difference here is that we may now incorporate a company, which is a large-scale proprietorship REGISTERED with the central government with the aid of the advisory firms that provides company registration services in surat, India as opposed to just doing small-scale proprietorship activity. The entire and only person in this situation is the Incorporated Company. There is only just one individual that has a significant role in this company in terms of ownership and decision-making, and they are the Manager as well as Owner, i.e. Direct and Shareholder.

As per provision of section 2(62) of the Companies Act, 2013 defined (62) “One Person Company” means a company which has only one person as a member.

For the formation of OPC – Only a natural person who is an Indian citizen and resident in India­­-

• shall be eligible to incorporate a One Person Company;
• shall be a nominee for the sole member of a One Person Company.

The term “resident in India” means a person who has stayed in India for a period of not less than 182 days immediately preceding one calendar year.

Any Proprietorship entity is referred to as a One Person Company when it is registered with the Government of India (specifically, the Ministry of Corporate Affairs) (OPC) and only then will you be able to take advantage of the advantages that any OPC is granted by the Central Government, such as limited liability, existence after the founders have passed away, tax breaks, etc.

The advantages One Person Company Registration in India are listed below. 

• It is regarded as a separate legal entity, which means that it establishes its own corporate structure independent of the founders.
• You get Protected Liability as a result. Let’s put it this way: starting a sole proprietorship requires tremendous effort and, most importantly, a large financial investment from all available sources. Being the founder and owner means that you are personally liable for any obligations and liabilities, in addition to being responsible for the business’s benefits, assets, and earnings. You are only liable for the sum that you personally invested in your firm if it is an Incorporated Company, which is registered as a One Person Company. You are prohibited from using your personal assets to pay off the debts and obligations of the incorporated business company.
• By separating management from ownership, directors will eventually be in charge of running the company’s daily operations. The advantages of the investment in the company go to the shareholders, who are the true owners.
• Your entity will also have more credibility with potential clients, suppliers, and employees when it is registered with the Central Government, namely the MCA, as an Incorporate Company, i.e. registered as a One Person Company, which is helpful for effective operations.
• Most importantly, it aids in growth. You may grow your firm both organically and inorganically with the aid of this credibility.
• A special clause in One Person Company will guarantee that the Company will continue to exist. The MOA, or Memorandum of Association, of an OPC must list the name of a NOMINEE (with that person’s prior written approval), who will succeed the Director as a member of the company in the event of his death or inability to enter into a contract.

Exemptions provided to One Person Company

As was previously said, the Government of India supports the nation’s entrepreneurs and has therefore introduced new and more advantageous programmes for their development and the benefit of One Person Company owners.

OPCs have fewer compliance-related burdens because they have received a number of exemptions.

• The preparation of a cash flow statement as part of a financial statement is not required of OPC.
• The annual return can be signed by the company director if an OPC does not have a company secretary
• An annual general meeting is not necessary to be held by an OPC.

So, reap the benefits of the chance that the central government is offering and register your firm as a one-person company with the aid of advisory firms that provide Company Registration services.

Let’s understand this in detail. There are two types of cost incurred in any business namely Variable cost and Fixed Cost.

Variable Cost

Variable cost means cost which varies directly with levels of output. These are direct costs that mean costs that change as per the level of production. Examples of variable costs are material cost, wages, packing expense, transportation cost, etc. If you will produce 1 unit, then raw material for only 1 unit shall be consumed but if you produce 1000 units then raw material of 1000 units shall be consumed. In simple terms, no output no variable cost.

Fixed cost

Fixed cost which is fixed in nature which means they are going to be incurred irrespective of the level of output. These costs do not change with the level of output. For example, rent expense of factory. The rent expense is going to be incurred whether you produce 1 unit of output or you produce 1000 units of output. Other examples of fixed costs are watchman salary, depreciation, interest on the loan, property taxes, etc.

Every business needs to recover both of these costs since both costs are expenses of a business. Whether it is the variable cost or fixed cost, it is the expense of the company and it reduces profit. Now one point is understood that variable costs are incurred only when output is produced but fixed costs are permanent in nature. So, if a product is sold, its variable cost shall be recovered. But what is the level where fixed costs are recovered since they are not directly linked to output? Here the concept of “Break-even point” comes into the picture. The Break-even point is the level where your fixed costs are recovered. Here is the calculation of How the break-even point is calculated.

Break even point = Fixed Cost / Contribution per Unit

Now, what is the contribution per unit? Contribution means Sales price per unit less Variable cost per unit. Contribution in simple meaning denotes margin per unit. The word contribution implies here the participation by each unit in recovering fixed costs of business. Suppose a product is sold for Rs 10 per unit and its variable cost (raw material, wages, etc) amounts to Rs 7 per unit. Here the contribution margin is 10-7=3 Rs per unit which means every unit sold will contribute Rs 3 towards recovering the fixed cost of business. Now let’s suppose the sum total of rent, depreciation, interest expenses come to Rs 15,000 per month. So, the fixed cost of the company is Rs 15,000 per month. What is the break-even point of this company per month?

Break even point = Fixed Cost / Contribution per unit

So, it will be 15,000 / 3 = 5,000 Units per month. This figure shows that 5,000 units need to be sold at a minimum to recover all costs of business. If less than 5,000 units are sold, the business will make a loss. If more than 5,000 units are sold, the business will make a profit. The concept of the Break-even point plays a very crucial role in taking decision-related to expenses, sales level, production level, and other financial matters.

# Total contribution varies with no of units.

There are lots of complexities involved in the calculation of Break-even point like Semi-variable costs, changing contribution margin at different levels of sales, non-availability of Information, changing sales prices, product mix which means some products are sold in a bundle, the different contributions of different products, calculation of depreciation, calculation of interest, apportionment of fixed overheads, apportionment of common costs like rent of head office, account department salary, etc. We at Finance help you in taking the right decision for your business by making accurate calculations, compiling data, performing data analysis, giving growth navigation solutions, shaping new strategies, and resolving problems.

If you have any questions related to GST, Income Tax, Accounts, Finance, or other matters, feel free to ask us. We shall revert to you within 24 hours!

Follow us on Instagram, Twitter, and LinkedIn for regular Updates related to GST, Income Tax, and Financial matters.

Type of Entity

For starting a business, first of all you need to choose “Type of Entity” for your business. There are various kinds of entities like Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Private Limited Company, One Person Company, Public Limited Company, Trust and etc. Considering your business idea, type of industry, future plan and other things, you need to choose one from these forms. Every form of entity has own advantages and disadvantages.

Sources of Fund

Money is said to be lifeline of business. For running every business, you need funds. Basically, every business requires two type of funds namely fixed capital and working capital. Fixed capital is the amount which you require for purchasing assets, giving deposits and incorporation expenses. Working capital is the amount which is required for running day to day business activities of organization. There are various sources of funds like own fund, loan from kins and relatives, Bank Loan like CC / OD / Term Loan, Seed Funding, Angel Investment, Deposit from Public etc.

Registration required

India Stands at 63^rd Position in the world for Ease of doing business ranking. There are various Registrations and Licenses which you need to take before starting business. The different kind of registrations are GST Registration, Permanent Account number, Tax Deduction Account Number, Professional Tax Registration, Provident Fund Registration, Employee State Insurance Registration, Factories Act Registration, Food Safety License (in case of food industry), Shop and Establishment Act License, ISO Certification, Import Export Code, Trademark Registration, MSME License and many other licenses as applicable to particular industry.

Compliance

After getting registration, various laws are to be complied and different returns are to be filed with government. For example, GST Returns filing is to be done every month or Quarter, TDS return filing is to be filed every quarter, Income tax return is to be filed every year, Advance Income tax is to be paid within due date of payment, Provident Fund and Employee State Insurance returns are to be filed every month, various compliances are required to be done under Companies Act and Limited Liability Partnership Act etc. Furthermore, many of these licenses are to be renewed yearly or at regular interval of some definite time period.

Setting up Internal controls

Internal controls are the processes designed to provide assurance that operations are running smoothly without disruptions, financial statement give reliable report and all applicable laws are complied with. Examples of internal controls are defining Standard operating procedures, segregation of duties, setting up reporting channel and reviewing policies. Internal controls are implemented manually as well as with the help of technology.

Book Keeping and Accounting

Accounting is said to be backbone of every business. Accounting and Book Keeping service is the process of recording financial transactions, summarizing, analyzing, and reporting these transactions to business owners. The various reports prepared are Trading and Profit & loss Statement, Balance Sheet, Cash flow statement, Age-wise debtors’ analysis, Cost report, Break even point sales report, Ratio analysis, Segment reports etc. These reports give insights of financial position of Business.

Internal Audit

Internal audit is an independent, objective assurance and consulting activity to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal audit covers checking of effectiveness of internal controls, checking accounting process of organization, checking all legal compliances, performing physical verification, checking inventory management and reviewing transaction pocessing system.

Investment Decision

Everyone knows that the best way to make money is to let your money work for you. A business man needs to pay great attention to whether to re-invest profit in business or to invest in some other things. The other investment options are Fixed Deposits, Shares and Securities, Mutual Funds, Properties, Liquid Funds etc. One need to select balanced portfolio for investment.

If you have any question related to GST, Income Tax, Accounts, Finance or other matters, feel free to ask us. We shall revert to you within 24 hours!

Follow us on Instagram, Twitter and LinkedIn for regular Updates related to GST, Income Tax and Financial matters.

Demat Account is an account that is utilized to buy, sell and hold shares and securities in electronic format. The full name of Demat account is a dematerialized account. In India, NSDL and CDSL are depositories which provide free Demat Account services. Demat Account is the first and foremost requirement for trading in shares, Investment in IPO etc.

Can a demat account be opened for a minor?

Yes. Demat account can be opened in the name of a minor. The account will be operated by a guardian till the minor becomes major. Guardian has to be the father or in his absence mother. In absence of both, father or mother, the guardian can be appointed by court.

Can a trading account be opened in the name of a minor?

Trading account can be opened in the name of the minor only for the sole purpose of sale of securities which minor has possessed by way of investment in IPO (Initial Public Offer), inheritance, corporate action, off market transfers under the following reason like Gift, Donation, Transfer between family members etc.

That means Trading in open market is not allowed in Minor’s account but applying IPO is allowed in Minor’s Demat Account.

However, such an account will be operated by the natural guardian till the minor becomes a major.

Does minor need a bank account before opening a demat or trading account?

No, a separate bank account on minor’s name is not required. Simply add minor to any of your (Guardian) bank account. This is sufficient to open demat / trading account.

Anyway, for tax purpose, minor income is added to the parent’s income, it doesn’t make sense to have a separate bank account

How to apply for IPO in Minor’s Demat Account?

Most of the intermediaries do not allow applying for IPO directly through their application. However, a minor can use net banking ASBA with their demat account details to apply.

What are the income tax implications in the case of Minor?

The minor’s income is added in father or mother whose income is more. The provision of Income tax says: “Any income that accrues or is paid to a minor, other than income earned by minor by his talent or skills, is added to the parent’s income under section 64(1A) and the parent will be taxed just like if it were their own income.”

Whether the natural guardian and the minor are required to comply with know your client (KYC) norms at the time of opening demat/ trading account for the minor?

Yes. The guardian and the minor have to strictly comply with the applicable KYC norms.

Can a minor’s demat/ trading account be continued when he/she becomes major?

Yes. A minor’s demat/ trading account can be continued when the minor becomes major. However, on attaining majority, the erstwhile minor should confirm the balance in his/her account and he/she has to complete formalities as are required for opening a demat/ trading account to continue in the same account/s.

If you have any question related to GST, Income Tax, Accounts, Finance or other matters, feel free to ask us. We shall revert to you within 24 hours!

Follow us on Instagram, Twitter and LinkedIn for regular Updates related to GST, Income Tax and Financial matters.

What is rent?

A tenant’s regular payment to landlord for use of property, land or any product.

What is agreement?

A negotiation and typically binding arrangement between parties as to a course of action.

Now we are at a stage to understand what does Rent Agreement actually means and in this article we are going to see what are the legal aspects of rent agreement, what are the necessities, what are the advantages of it and what does it contain.

What is rent agreement?

A rental agreement is a contract of rental, usually written, between the owner of a property and a renter who desires to have temporary possession of the property; it is distinguished from a lease, which is more typically for a fixed term. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the renter as the lessee.

Legal aspects of Rent Agreement:

There is a separate act governing rent agreement for every state such as for instance, Rent Control Act (1999) Maharashtra, Rent Control Act (1958) Delhi, Tamil Nadu Buildings (Lease and Rent Control) Act (1960) Chennai govern the state’s rent agreements.

Advantages of Rent Agreement?

Facilitates other registration’s:

It can be used as a valid evidence of address proof for various registration such as GST registration, Import Export Code registration, Companies registration, etc.

Written Proof:

Rent agreements would be a formal and legal relationship between the parties. Always these forms of agreements would be in writing. Hence it would be a document for reference in the future for either of the parties.

Legal Compliance:

By entering into an agreement, compliance can be maintained by the parties. As the agreement is in writing the provisions related to law would be applicable to both the landlord and the tenant.

Content of Rent Agreement?

• Rental property address and details – This is especially important when you have one building with multiple units so there’s no confusion.
• Details on any furnishings, parking space, storage areas, or other extras that come with the rental property – Will the unit be furnished or unfurnished? Will a refrigerator be included? Etc. You can see how disagreements here could lead to problems.
• Names of all tenants – Every adult who lives in the rental unit, including both members of a married or unmarried couple, should be named as tenants and sign the lease or rental agreement. This makes each tenant legally responsible for all terms, including the full amount of the rent and the proper use of the property.
• Limits on occupancy – Your agreement should clearly specify that the rental unit is the residence of only the tenants who have signed the lease and their minor children. This guarantees your right to determine who lives in your property — ideally, people whom you have screened and approved — and to limit the number of occupants. The value of this clause is that it gives you grounds to evict a tenant who moves in a friend or relative, or sublets the unit, without your permission.
• Term of the tenancy – Every rental document should state whether it is a rental agreement or a fixed-term lease. Rental agreements usually run from month-to-month and self-renew unless terminated by the landlord or tenant. Leases, on the other hand, typically last a year. Your choice will depend on how long you want the tenant to stay and how much flexibility you want in your arrangement.
• Deposits and fees – Expect to see details on the dollar amount of a security deposit, cleaning deposit, or last month’s rent BEFORE the tenant can move in. Are deposits refundable or nonrefundable?
• Rent – Your lease or rental agreement should specify the amount of rent, when it is due (typically, the first of the month), and how it’s to be paid, such as by mail to your office. To avoid confusion and head off disputes with tenants, spell out details such as:acceptable payment methods (such as personal check only) whether late fees will be due if rent is not paid on time, the amount of the fee, and whether there’s any grace period, and any charges if a rent check bounces.
• Repairs and maintenance – Your best defense against rent-withholding hassles and other problems (especially over security deposits) is to clearly set out your and the tenant’s responsibilities for repair and maintenance in your lease or rental agreement.

The Bottom Line:

To be on a safer side, it will always be advisable to get rent agreement registered whether it is a contract for more than 11 months or less.

Written By – Darshan Banthia

If you have any question related to GST, Income Tax, Accounts, Finance or other matters, feel free to ask us. We shall revert to you within 24 hours!

Follow us on Instagram, Twitter and LinkedIn for regular Updates related to GST, Income Tax and Financial matters.

We have also covered blogs on What is break even point, How to start business in India, What is GST Number and many other topics related to GST Return Filing, Income Tax Return Filing, Legal and Financial Solutions. 

Follow us on Instagram, Twitter and LinkedIn for regular Updates related to GST, Income Tax and Financial matters.

Written By: CA Bhavana Rathi