It’s no secret that 56% of Indian firms do not want to take the headache of filing their taxes

Whereas, 26% of Indian businesses are either unaware of the entire process to file their taxes or desperately seek an expert’s consultancy for tax computing.

Consequently, the majority of businesses have admitted that accounts management has become a primary necessity in daily business operations.

By now, the majority of Indian companies have admitted the fact, that the necessity of a professional accountant can’t be ignored for managing pivotal elements of financial accounting like TDS and GST filing, IT filing and tax computing, etc.

 

What’s Accounting Management and Why Do You Need It In Your Business?

It’s no wonder that a business owner may not have sufficient time to scrutinise the accounts-related business functionalities every day. That’s because business accounting includes multiple aspects like-

• Income Tax filing
• TDS and GST filing
• Maintaining ledger balance and balance sheet
• Overviewing the financial transactions
• Managing payroll and tax management, etc.

That’s where the requirement of well-defined accounting management becomes a top priority for a business.

It’s one of the major reasons for which a business owner needs a reliable accounting solution from an expert for-

1. Simplifying accounting system
2. Avail of custom accounting solutions
3. Accurate and reliable accounts management and operations
4. Get adequate support from an expert for overviewing day-to-day
5. Financial activities in a business

Apart from these, there are countless other financial factors ensured through a well-defined accounting framework in a business. The rapid increase in demand for professional accounting solutions has compelled small and medium-scale companies to seek custom accounts management for their businesses.

Response Of the Indian Accounting Market Towards Growing Need of Professionals in Accounts Management  

According to the report generated by accounting experts, the Indian accountancy market drew a total revenue of around $13.6 billion (USD), which is close to 1,118,192,040.80 INR. The market data also represents that the Compound Annual Growth (CAGR) is around 7.7% between 2016 and 2020.

The advisory segment in the Indian accounting market turned out to be the most lucrative one in 2020 and has found the majority of businesses are looking ahead to hire an expert’s advice for managing their diverse activities related to accounting management.

 

Key Business Benefits Unlocked with a Professional Accountant 

With a well defined and systematic accounting management, you can always expect the contribution of a professional accountant’s assistance to avail some of these key accounting benefits shared below-

1. Better transparency in tracking the income and expenditure

Insufficient transparency leads to inferior accounts management practice in maximum businesses. With a well-defined approach for tracking the expenditure, income, and the in-flow of revenues in your business as per statutory compliance of the Indian Accounting Standard, it’s quite easy to manage the income and expenditure statements of business. Apart from that, a transparent business report can be an added leverage for you to chalk down your financial planning in advance for the next Financial Year.

2. Maximum accuracy while generating financial records and statements

Inefficient accounts management is one of the major areas where a business might ignore unnecessary mistakes while generating monthly financial reports or statements. Such common errors may not be reflected while making an entry. Whereas a professional firm with a team of expert-chartered accountants can ensure some of the following services in your business-

Exact calculation of your profit and loss statement
Depicting the clear financial picture of your balance sheet statements
Guaranteed transparency and accuracy in drafting cash flow statements during a specific point of time

3. Seamless evaluation of your business performance

A structured accounting framework always adapts to a professional accounts-management practice that helps small or a medium-scale cooperation to understand the current performance of a business. Such practices demonstrate the transparent-picture of your present business performances like-

Tracking the gross revenue margin of your business for a specific quarterly, or a year so that it’s easier to compare the figure with your targeted profit margin. Analyse and compare the present financial data with the last year’s accounting records to streamline the budget allocation. Enabling a business to follow the statutory legal compliance mentioned in the Indian Accounting Standards

4. Simplifies budget-framing process by filing financial statements

Often ordinary accountants may overlook the common mistakes while drafting the year-ending financial statements, that might not display the closing financial balance of your business. Such mistakes often negatively impact budget-farming strategy while sketching the financial plan for the next year.

Whereas, by involving a professional accounting consultant, a business owner can expect a dedicated team of chartered accountants to-

• Frame error-less financial statements
• Compute taxation and take accountability for TDS and GST filing
• Ensures affordability by trimming down your budget

The rapid change in accounting practice compelled a number of businesses to prefer the involvement of chartered accounting firms for managing their taxation, and payroll management, and enjoy better privileges for handling their business accounts and financial data.

Having a chartered accountant on board, a business can quickly eliminate the loopholes, frequently leading to some of the major accounting malpractices, therefore, evading it accordingly.

 

What To Expect from a Professional Accountant While Seeking Custom Accounting Solutions?

Ordinary accountants may not have the required expertise to organise a full-proof plan for auditing your business. Now that’s where a professional stays one step ahead of the novices. A professional accountant can chalk out a seamless strategy for auditing your business.

By implementing one such initiative, you as a business owner avail every option to determine the-

1. Profit and loss statement
2. Financial correctness of all the recorded entities or transactions
3. Execute your financial decision-making process by simplifying it altogether
4. Involvement of automated accounting software for maintaining
5. your singular or multiple business accounts by enabling you to access it via user-specific login ID

Apart from these, custom accounting assistance is driven by the following advantages as well-

 

Improvised cash-flow management 

According to a recent survey that has been shared recently, 29% of businesses fail due to improper cash flow management, eventually increasing the threat of sustaining a loss.

Whereas, a professional chartered accounting firm deploys an expert for handling cash flow management in a business to-

1. Constantly monitoring financial statements
2. Maintain the difference between the net income of cash moving in and moving out from a business
3. Ensuring the business owner to be prepared for the lean period to avoid bankruptcy and other business risks
4. Shifting towards a sustainable business approach to combat lean-periods to ensure cash flow in a business

 

Simplifying Taxation Management

A reputed chartered accounting firm encourages systematic investment of your finance so that you can re-invest it again and again.

With a professional tax consultant, the following benefits can be easily availed-

 

• Easier to save tax by knowing the benefit of tax credit and deductions
• Quickly adapting the new tax and regulatory changes imposed by the Indian Accounting Standards
• Understanding the nitty-gritty of Corporate Income Tax
• Gaining competitive business advantages adhering to the Tax compliances mentioned within Indian Income Tax Act

Strengthening Payroll Management

A professional accountant can take every responsibility and accountability for improving payroll management in an organization. Some of those responsibilities include-

1. Meeting the legal compliances of payroll management as mentioned within Indian Accounting Standard
2. Calculate net wages by tracking the factors like working hours, gross wages, etc.
3. Initiate and process payroll transactions on specific payday schedules
4. Adhere to every legal compliance mentioned in Indian Labour Law
5. Rely on automated accounting software if needed for managing payroll accounting as per the custom demand of the clients

 

Conclusion 

If you’re expecting a custom accounting service in your business, you can always prefer reaching out to an accounting expert for availing of custom accounting solutions in your business.

However, you may also reach out to ARKCAONE to knowing more about their diverse All-Rounder Accounting Solutions.