Accounting and Compliance Services Explained

 

Mysore and Kalaburagi are home to several startups and software companies that have made an indelible mark on the economy of the state. Auditing and Corporate statutory compliance are key element and driving force behind the success of these corporate majors. CA firms in Mysore and Kalaburagi play a pivotal role in facilitating these statutory compliances and auditing accounts for companies.

So, what are accounting and statutory compliances?

Accounting involves documenting, managing, and presenting financial transactions that occur within the organization as well as with external parties. In contrast, statutory compliance refers to the legal obligations and regulations a company must follow to remain acknowledged and approved by the Government. It means companies have to fulfill certain regulatory, legal and financial requirements set by the Government. From the company’s formation to quarterly and annual reports and submissions, companies are required to mandatorily operate within the rules set therein.

Failure to comply with auditing and statutory compliances can attract penalties, fines and also result in closure.

Statutory compliances in India

Indian companies have 5 key statutory compliances, including:

• Statutory tax compliance

• Corporate filings

• Labor law

• Industrial relations

• Other statutory compliances

Auditors in Kalburagi and Mysore ensure companies comply with these statutory requirements, including tax and corporate filings. CA firms in Mysore offer tax and other statutory compliances for smooth corporate operations.

Complete guide to statutory compliances:

Taxation

The Income Tax Act 1961 governs taxation laws in India. Companies must comply with tax laws and file returns. Further, companies must ensure internal and external audits are conducted on time. Other tax filings include:

• GST and TDS filings

• Bookkeeping and ledger maintenance

• Financial reporting

• Payroll processing is among other accounting systems

Corporate filings

Every startup or company must have its company registered with the Registrar of Companies. The Companies Act 2013 regulates all businesses and defines the guidelines and procedures for company incorporation. Auditors in Kalaburagi and Mysore offer accounting services and corporate filings for diverse industries and companies.

Labor laws

Employers must provide employees—including laborers, skilled, and unskilled—with safe working conditions and prevent discrimination at the workplace.

Industrial relations

Another statutory compliance every company must adhere to is the minimum working conditions in the industrial set up. Every company or industry must provide employees or workers with the minimum working standards, including fixed working hours and working conditions. Further, compliance with minimum wages and leave policies must align with the Government policies. Compliance requirements also include social security measures like ESI and EPF.

Accounting & Compliance Services in Kalaburagi and Mysore

Mahaveer Singhvi and Associates, a leading CA firm in Mysore, provides auditing and compliance services for startups, businesses, and various industries. Our team of auditors in Mysore has the experience and expertise to deliver professional accounting and statutory compliance services across diverse industries and companies.

For all accounting services and statutory compliances, including incorporation of companies, contact Mahaveer Singhvi and Associates, Auditors in Mysore. Our CA firm in Mysore and Kalaburagi offer different accounting services including tax filing and internal and external audits for companies and startups.

The importance of account audits for your business

Before we learn the importance of account audits for your business, it is important to understand what auditing is and the different types of audits by auditors in Kalaburagi.

What is auditing?

Cash inflow and outflow is required to efficiently carry out business processes including procuring raw material and manufacturing finished goods. Auditing involves examining and reviewing a company's financial records or cash transactions to ensure accuracy and compliance. Generally, CA’s in Kalaburagi conduct quarterly or half-yearly and annual audits of the financial statements of a company.

Types of audits by CA’s in Mysore

Companies in Mysore usually hire CA firms in Mysore to conduct audits of the company’s financial statements including:

Internal audits

Internal audits are carried out within the organization, typically by its own employees or in-house accountants. Companies regularly conduct internal audits for internal assessments and for the benefit of management.

External Audits

On the other hand, external audits are conducted by third parties, usually a CA firm or by auditors in Kalaburagi. External audits are conducted regularly, usually every three months or every 6 months and also annually, depending on the company’s requirements and statutory compliances. CA’s in Kalaburagi provide an unbiased view of the financial statements.

Government audits

Government audits are another type of company audit. As the name suggests, these audits are initiated by the Government and are conducted by a CA firm or chartered accountant appointed by the Government. Also, the Income Tax Department in India can conduct company audits.

Importance of auditing

Creates trust among stakeholders

Companies require auditing of accounts to verify the financial statements in the business. A correct and true picture of the company’s financial statements improves the company's brand image and also creates a sense of trust amongst its stakeholders. When stakeholders are aware of the company's financial position, it gives them assurance that they have associated and also invested in a reliable company.

Financial statement verification

Further, audits of the company’s financial statements give an accurate and fair representation of the income statement, balance sheet, and also cash flow statement. Audits determine the exact inflow and outflow of cash from the business, unlike rough estimations that could be inaccurate.

Government compliances

Auditors also conduct financial statement audits to comply with Government regulations such as the annual filing of returns and income tax returns. Companies hire professional auditors in Kalaburagi because these professionals are aware of the relevant accounting standards and principles. Chartered Accountants in Mysore have extensive experience and comply with all Government regulations, including the provisions of the Companies Act 1956.

Dissemination of accurate information to stakeholders

CA’s in Mysore audit a company’s accounts to provide accurate information to shareholders, investors, Government authorities, and also customers. Therefore, it can be rightly stated that hiring a CA firm in Mysore is not only important for internal management but also to ensure compliance with Government regulations.

Provides direction for decision-making

Further, audited accounts help businesses make better decisions regarding future business plans, including organizational restructuring and also purchase and sales. Based on the company’s financial position, companies can make important decisions regarding stock procurement, manufacturing, and also supply.

Determines taxable income

Accurate auditing of accounts determines companies' taxable income. Businesses can determine the amount of tax due from the company based on audited accounts.

Top CA firm in Kalaburagi

Mahaveer Singhvi & Associates in Mysore is a leading CA firm in Mysore. We are a team of passionate auditors in Kalaburagi offering assistance in auditing and also other company compliances.

Contact Mahaveer Singhvi & Associates today.