Q. How sooner or early is the accounts and bookkeeping part need to be arranged and confirmed?
Agam Gupta March 30, 2016 773 Views
The best way to do the accounting in a company is to do accounting on Accrual basis that means whatever income you have earned or whatever expenditure you have expended should be recorded in the books at the time of happening of the event not at the time of actual monetary transaction happens.
As per se, Accounting of a company has to meet certain standards. We have around 31 accounting standard that applies to the companies. Meeting a certain level is required by the law, if you don’t, then government authorities have the power to reject your books of accounts, and they will assess your profits according to their best judgement. Their best judgement could be anything. They could estimate a very high profit and tax you accordingly.
Hence, it is important to understand that accounting should be done properly in any case.
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