Taxation & Annual Compliance
Businesses engaged in cross border trading need to comply with customs duty regulations. The duty varies between products. The compliance requirement includes determination and deposit of duty prior to clearance of goods by the customs authority. While basic customs duty remains, the Counter Vailing Duty (CVD) and Special Additional Duty (SAD) of customs are subsumed into GST.
Reconciliation is an accounting process which inputs two sets of same records from two different points to ensure that the recorded figures are correct and commensurate with each other. It is often considered a lengthy and tiresome activity by the accounts and finance department executives as it involves reconciliation of huge amount of data.
Any kind of business has its own business cycle and as per that cycle, it experiences lows and highs, in terms of process efficiency, sale margins, annual profits, employee motivation etc. The business owner has no control over most of the factors responsible for this deviation but the inherent discrepancies in any business process can be addressed and improved with consistent efforts. Accounts Payable is one such area. In the present business scenario, a business and its promoter/s are under continuous pressure to cut costs to continue as a viable & profitable entity.
A business entity may be involved in sale of services or goods as a business activity. The customers buy these services or goods from the company and pay the agreed price for that service or product. Now, there are various options for payment that a company may offer to its customers. It may receive cash or wired transfer from its customers and in some cases, the company may offer its services or goods to selected customers on credit. Accounts receivable refers to the outstanding invoices a company has or the money the customers owe to the company for the services or goods sold. Many companies try to increase their revenues by allowing some percentage of the total annual sales to be on credit. A business has to offer this type of credit line to frequent or special customers who are invoiced periodically. This credit line also helps the customers to avoid the hassle of physically making payments every time a transaction is made.
General Accounting & Book Keeping
A business entity and its promoters/managers are under tremendous pressure to increase the EBDITA or net profits, either by generating additional revenue streams or by cutting the costs, operational, employee costs or any other type of recurring expense. A small business having 10 -50 employees need to have a book keeper, an accountant and CA services along with the associated resource costs like seat cost, employee benefits, employee compliances etc. This is where the outsourcing of non-core business activities come into picture as the outsourcing of a non-core activity provide a chance for this particular activity to be handled by the industry experts and domain experts having extensive knowledge of that outsourced business function. The first business function that can be outsourced is general accounting book keeping. By doing this, an entrepreneur or a businessman can free his vital work force to devote its entire energy towards more important activities like sales, operations, service delivery, customer care and new product or service research and innovations.