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Statutory accounting — Visakhapatnam

Bookkeeping & Accounting Services

Statutory bookkeeping and accounting for businesses in Visakhapatnam — Section 128 Companies Act 2013, Section 44AA Income Tax Act 1961. Monthly P&L, balance sheet, GST-compliant accounts, TDS reconciliation (Form 26AS), and MIS reports on Tally Prime, Zoho Books, or QuickBooks. Dedicated CA assigned.

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Statutory Basis — Who Must Maintain Books

Section 128, Companies Act 2013

Every company must maintain books of accounts at its registered office, on accrual basis, with double-entry system. Books must be kept for 8 years.

Penalty ₹50,000 to ₹5 lakh under Section 128(6)

Section 44AA, Income Tax Act 1961

Mandatory books for businesses with gross receipts > ₹25 lakh in any of the 3 immediately preceding years. For professionals (doctors, lawyers, CAs): > ₹10 lakh gross receipts.

Penalty ₹25,000 under Section 271A for failure to maintain

Section 44AB, Income Tax Act 1961

Tax audit mandatory for businesses with turnover > ₹1 crore (₹10 crore if cash transactions < 5%). For professionals: gross receipts > ₹50 lakh.

Penalty 0.5% of turnover, max ₹1.5 lakh under Section 271B

Rule 3, Companies (Accounts) Rules 2014

Electronic books of accounts are permitted. Audit trail (edit log) mandatory from 1 April 2023 — every change to accounting entries must be logged with timestamp and user ID.

Audit qualification if audit trail not maintained

Section 35, CGST Act 2017

Every registered GST person must maintain accounts of production, inward and outward supply, stock, Input Tax Credit availed, output tax, and goods/services not supplied.

Penalty under Section 122 CGST Act for non-maintenance

What We Do — Monthly Scope

  • Transaction recording — all sales, purchases, expenses, bank, and cash entries on Tally Prime, Zoho Books, or QuickBooks
  • Bank reconciliation — monthly reconciliation of all bank accounts and credit card statements
  • Financial statement preparation — P&L, Balance Sheet, Cash Flow Statement, and Notes to Accounts per Schedule III (Companies Act 2013)
  • GST-compliant bookkeeping — HSN/SAC coding, ITC classification, GSTR-2A/2B reconciliation, GSTR-1/3B data preparation
  • TDS accounting and 26AS reconciliation — ensuring TDS deducted matches Form 26AS, flagging mismatches
  • Accounts Payable management — vendor aging, payment scheduling, and reconciliation
  • Accounts Receivable management — debtor aging, follow-up reports, and customer reconciliation
  • Fixed Asset register — depreciation computation per Companies Act 2013 (Schedule II) and Income Tax Act (Section 32)
  • Payroll accounting integration — salary journal entries, PF/ESIC provisions, Professional Tax
  • MIS reports — monthly P&L vs. budget, cash position, and key ratio summary
  • Audit trail compliance — edit log enabled as required under Rule 3 of Companies (Accounts) Rules 2014

Software We Work On

Tally Prime
Zoho Books
QuickBooks Online
QuickBooks Desktop
Xero
Busy
Microsoft Business Central
Excel (MIS layer)

Documents Required to Onboard

  • Bank statements — all accounts for the period to be maintained
  • Sales invoices / e-invoices and delivery challans
  • Purchase invoices and expense receipts
  • GST portal credentials (view-only access for GSTR-2A/2B reconciliation)
  • Salary register or payroll summary
  • TDS deduction details and challans
  • Loan statements — EMI schedules and repayment history
  • Previous month's finalized books (for first-time clients transitioning bookkeeping)
  • Entity documents: PAN, GST certificate, MCA incorporation certificate or LLP deed

Frequently Asked Questions

Is bookkeeping mandatory for a proprietorship?

Yes, if gross receipts in any of the 3 preceding financial years exceeded ₹25 lakh (business) or ₹10 lakh (professional). Under Section 44AA of the Income Tax Act, 1961, failure to maintain prescribed books attracts a penalty of ₹25,000 under Section 271A.

What is the penalty for not maintaining books under the Companies Act?

Under Section 128(6) of the Companies Act, 2013, the MD, whole-time director, CFO, and every director who approved the accounts can be penalised ₹50,000 to ₹5 lakh for failure to maintain proper books of accounts.

What is the audit trail requirement from April 2023?

Under Rule 3 of the Companies (Accounts) Rules 2014 (amended), every company using accounting software must ensure the software has an audit trail feature — an edit log that records every change to an accounting entry with a timestamp and user ID, and cannot be disabled. Tally Prime, Zoho Books, and most cloud accounting tools are compliant if configured correctly.

Can we switch from our current accountant mid-year?

Yes. Mid-year transitions are straightforward — we take over from the last entry in your existing books, review prior entries for accuracy, and make corrections where needed. GSTR-2A/2B reconciliation is done from the beginning of the financial year to catch any ITC mismatches from the earlier period. A typical mid-year transition takes 7–10 working days.

Can we switch software mid-year?

Yes, though mid-year migrations require importing opening balances, validating trial balances, and reconciling GSTR-2A/2B against the new system. We manage migrations from Tally to Zoho Books and vice versa as part of the onboarding process.

How does GST-compliant bookkeeping differ from regular bookkeeping?

GST-compliant bookkeeping requires: (1) proper HSN/SAC coding on every invoice, (2) bifurcation of ITC into eligible, blocked (Section 17(5) CGST Act), and reverse charge ITC, (3) monthly GSTR-2A/2B reconciliation to identify unclaimed ITC, and (4) tax-period-wise output tax computation matching GSTR-1 and GSTR-3B. Without this, ITC claims are vulnerable to department notices.

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