The Budget for 2011-12 is widely seen as cautious approach of the Finance Minister, Dr. Pranab Mukherjee towards balancing this critical phase of Indian economy. We are facing complex issues relating to soaring inflation, high growth rate, employment problems, rising oil prices, increasing deficit on current and capital account, corruption, black money, internal law and order disturbances and many more. In these circumstances our Finance Minister can definitely be excused for remaining in hibernation and playing safe in his position.
We wish financial establishment gets more proactive towards the needs of the time and react muscularly keeping in mind the aspirations of the public. In view of the media generated publicity about wastages and misappropriations of public money by some selected class of individuals the whole governance has been put on public trial. In these circumstances Regulatory Bodies are required to get into action swiftly and clear the misgivings otherwise help the government to discipline the perpetrators.
However, if the government feels that, the regulatory mechanism and policing can not be the solution to the problems like black money and foreign bank accounts etc. than it should audaciously look for alternative means and measures in the larger interest of the nation without being conscientious of opposition party's political criticism. Finance Minister should realise that, enormous Indian wealth is lying in other countries which he can attract discreetly and not by any kind of intimidation or coercion. In the interest of infrastructure development the government can come out with some scheme which permits this money to return back to India and strictly get invested in sector like education, health, roads, housing etc. A very simple scheme can do wonders to the entire nation and make our finance minister's name and congress leadership immortal in the fiscal and financial history of India.
KEY FEATURES OF FINANCE MINISTER'S BUDGET 2011-2012
Overview of the Economy
Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in2010-11 in real terms. Economy has shown remarkable resilience. Continued high food prices have been principal concern this year. Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year. Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.
Tax Reforms
Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012. GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.
Expenditure Reform
Committee has been set up by Planning Commission to suggest government expenditure ( capital, revenue, plan and non plan) reforms.
Subsidies
Government actively considering extension of the Nutrient Based Subsidy regime to cover urea. Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers.
PSU's
Rs. 40,000 crore to be raised through disinvestment in 2011-12. Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.
Investment Environment
Government to further liberalise the FDI policy. SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes. To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.
Banking and Micro Finance
Additional banking licences will be issued to private sector players. Rs. 6,000 crore will be provided to public sector banks for maintaining minimum of Tier I CRAR of 8 per cent. Rs. 500 crore will be provided to Regional Rural Banks for maintaining CRAR of at least 9 per cent as on March 31, 2012. India Microfinance Equity Fund of Rs. 100 crore to be created with SIDBI. New authority will vouch interest of small borrowers. Women's SHG's Development Fund to be created with a corpus of Rs. 500 crore. Target of providing banking facilities to all 73,000 habitations having a population of over 2,000 to be completed during 2011-2012.
Micro Small and Medium Enterprises
Rs. 5,000 crore will be provided to SIDBI for refinancing incremental lending by banks to these enterprises. Rs. 3,000 crore will be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress. Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest.
Housing Sector Finance
Existing scheme of interest subvention of 1 per cent on housing loan further liberalised. Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending. Provision under Rural Housing Fund enhanced to Rs. 3,000 crore. To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund to be created under Rajiv Awas Yojana. Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011.
Legislative Reforms
Financial Sector Legislative Reforms Commission set up to rewrite and streamline the financial sector laws, rules and regulations. Companies Bill to be introduced in the Lok Sabha during current session.
Food & Agriculture
Allocation under Rashtriya Krishi Vikas Yojana increased from Rs. 6,755 crore to Rs. 7,860 crore. To improve rice based cropping system in eastern region, allocation of Rs. 400 crore has been made. Allocation of Rs. 300 crore to promote production of 60,000 tons of pulses in rainfed areas. Allocation of Rs. 300 crore to bring 60,000 hectares under oil palm plantations. Initiative to yield about 3 lakh Metric tonnes of palm oil annually in five years. Allocation of Rs. 300 crore for implementation of vegetable initiative to provide quality vegetable. Allocation of Rs. 300 crore to promote higher production of Bajra, Jowar, Ragi and other millets, which are highly nutritious and have several medicinal properties. Allocation of Rs. 300 crore to promote animal based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries. Allocation of Rs. 300 crore for Accelerated Fodder Development Programme to benefit farmers in 25,000 villages.
Agriculture Credit
Credit flow for farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 crore in 2011-12. Interest subvention proposed to be enhanced from 2 per cent to 3 per cent for providing short-term crop loans to farmers who repay their crop loan on time. In view of enhanced target for flow of agriculture credit, capital base of NABARD to be strengthened by Rs. 3,000 crore in phased manner. Rs. 10,000 crore to be contributed to NABARD's Short-term Rural Credit fund for 2011-12. Approval being given to set up 15 more Mega Food Parks during 2011-12.
Infrastructure and Industry
Allocation of Rs. 2,14,000 crore for infrastructure in 2011-12. This is an increase of 23.3 per cent over 2010-11. This also amounts to 48.5 per cent of total plan allocation. Government to come up with a comprehensive policy for further developing PPP projects. IIFCL to achieve cummulative disbursement target of Rs. 20,000 crore by March 31, 2011 and Rs. 25,000 crore by March 31, 2012. Under take out financing scheme, seven projects sanctioned with debt of Rs. 1,500 crore. Another Rs. 5,000 crore will be sanctioned during 2011-12. To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued by Government undertakings during 2011-12.
National Manufacturing Policy
Share of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will come out with a manufacturing Policy. National Mission for hybrid and electric vehicle to be launched. Financial Assistance to be made available for metro projects in Delhi, Mumbai, Bengaluru, Kolkata and Chennai. Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector.
Exports
Self assessment to be introduced in Customs to modernize the Customs administration. Proposal to introduce scheme for refund of taxes paid on services used for export of goods. Mega Cluster Scheme to be extended for leather products. Seven mega leather clusters to be set up during 2011-12. Jodhpur to be included for the development of a handicraft mega cluster.
Black Money
Five fold strategy to be put into operation to deal with the problem of generation and circulation of black money. Government joining various international forums which are engaged in anti money laundering, Economic development, Exchange of information for tax purposes. Various Tax Information Exchange Agreements and Double Taxation Avoidance Agreements being concluded. Foreign Tax Division of CBDT has been strengthened to effectively handle increase in tax information exchange and transfer pricing issues. Enforcement Directorate strengthened three fold to handle increased number of cases registered under amended Money Laundering Legislation. Finance Ministry has commissioned study on unaccounted income and wealth held within and outside the country. Comprehensive national policy to be announced in near future to strengthen controls over prevention of trafficking on narcotic drugs.
Bharat Nirman
Allocation for Bharat Nirman programme proposed to be increased by Rs. 10,000 crore from the current year to Rs. 58,000 crore in 2011-12. Plan to provide Rural Broadband Connectivity to all 2,50,000 Panchayats in the country in three years.
MGNREGA
In pursuance of last years budget announcement to provide a real wage of Rs. 100 per day, the Government has decided to index the wage rates notified under the MGNREGA to the Consumer Price Index for Agricultural Labour. The enhanced wage rates have been notified by the Ministry of Rural Development on January 14, 2011. From 1st April, 2011, remuneration of Anganwadi workers increased from Rs. 1,500 per month to Rs. 3,000 per month and for Anganwadi helpers from Rs. 750 per month to Rs. 1,500 per month.
Education
Allocation for education increased by 24 per cent over current year. Rs. 21,000 crore allocated, which is 40 per cent higher than Budget for 2010-11. Pre-matric scholarship scheme to be introduced for needy SC/ST students studying in classes IX and X. Connectivity to all 1,500 institutions of Higher Learning and Research through optical fiber backbone to be provided by March, 2012. Additional Rs. 500 crore proposed to be provided for National Skill Development Fund during the next year.
Health
Plan allocations for health stepped-up by 20 per cent. Scope of Rashtriya Swasthya Bima Yojana to be expanded to widen the coverage.
Financial Inclusion
Exiting norms under co-contributory pension scheme "Swavalamban" to be relaxed. Benefit of Government contribution to be extended from three to five years for all subscribers who enroll during 2010-11 and 2011-12. Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 years of age to 60 years. Those above 80 years of age will get pension of Rs. 500 per month instead of Rs. 200 at present.
Environment and Climate Change
Rs. 200 crore proposed to be allocated for Green India Mission from National Clean Energy Fund. Rs. 200 crore proposed to be allocated for launching Environmental Remediation Programmes from National Clean Energy Fund. Special allocation of Rs. 200 crore proposed to be provided for clean-up of some more important lakes and rivers other than Ganga.
Other Provisions and Defence Expenses
To boost development in North Eastern Region and Special Category States, allocation for Special Assistance doubled. Rs. 8,000 crore provided in current year for development needs of Jammu and Kashmir. Allocation made in 2011-12 to meet the infrastructure needs for Ladakh Rs. 100 crore and Jammu region Rs. 150 crore). Allocation under Backward Regions Grant Fund increased by over 35 per cent. Funds allocated under Integrated Action Plan for addressing problems related to Left Wing extremism affected districts. 60 selected Tribal and backward districts provided with 100 per cent block grant of Rs. 25 crore and Rs. 30 crore per district during 2010-11 and 2011-12 respectively A lump-sum ex-gratia compensation of Rs. 9 lakh for 100 per cent disability to be granted for personnel of Defence and Para Military forces discharged from service on medical ground on account of disability attributable to government service. To build judicial infrastructure, plan provision for Department of Justice increased by three fold to Rs. 1,000 crore. Provision of Rs. 1,64,415 crore, including Rs. 69,199 crore for capital expenditure to be made for Defence Services in 2011-12.
Other Initiative by IT Dept.
These include e-filing and e-payment of taxes, adoption of ‘Sevottam' concept by CBEC and CBDT, web based facility for tax payers to track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity. Under Mission mode projects, funds released to 31 projects received from States/ UTs for computerisation of Commercial taxes. This will allow States to align with roll out of GST. Bill to amend the Indian Stamp Act proposed to be introduced shortly. A new scheme with an outlay of Rs. 300 crore to be launched to provide assistance to States to modernise their stamp and registration administration and roll out e-stamping in all the districts in the next three years. New simplified form ‘Sugam' to be introduced to reduce the compliance burden of small tax payers falling within presumptive taxation. Three more benches of Settlement Commission to be set up to fast track the disposal of cases.
Budget Estimates 2011-12
Gross Tax receipts are estimated at Rs. 9, 32,440 crore. Non-tax revenue receipts estimated at Rs. 1, 25,435 crore. Total expenditure proposed at Rs. 12, 57,729 crore. Increase of 18.3 per cent in total Plan allocation. Increase of 10.9 per cent in the Non-plan expenditure. XI Plan expenditure more than 100 per cent in nominal terms than envisaged for the Plan period. Increase of 23 per cent in Plan and Non-plan transfer to States and UTs. Fiscal Deficit brought down from 5.5 per cent in BE 2010-11 to 5.1 per cent of GDP in RE 2010-11. Fiscal Deficit kept at 4.6 per cent of GDP for 2011-12. 10. Fiscal Deficit to be progressively reduced to 3.5 per cent by 2013-14. "Effective Revenue Deficit" estimated at 2.3 per cent of GDP in the Revised Estimates for 2010-11 and 1.8 per cent for 2011-12. All subsidy related liabilities brought into fiscal accounting. Net market borrowing of the Government through dated securities in 2011-12 would be Rs. 3.43 lakh crore. Central Government debt estimated at 44.2 per cent of GDP for 2011-12 as against 52.5 per cent recommended by the 13th Finance Commission.
Tax Proposals - Direct Taxes
1 Exemption limit for the individual taxpayers enhanced from Rs. 1, 60,000 to Rs. 1, 80,000 giving uniform tax relief of Rs. 2,000.
2. Exemption limit enhanced to Rs. 2, 50,000 and qualifying age reduced for senior citizens from 65 to 60 year. Higher exemption limit of Rs. 5, 00,000 Citizens over 80 years.
3 Surcharge of 7.5 per cent on domestic companies reduced to 5 per cent.
4. Minimum Alternative Tax increased from 18 per cent to 18.5 per cent.
5. Tax incentives extended to attract foreign funds for financing of infrastructure.
6. Deduction of Rs. 20,000 for investment in long-term infrastructure bonds extended for one more year.
7. Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary.
8. Investment linked deduction extended to fertiliser industry and developing affordable housing.
9. Deduction on payments made to National Laboratories, Universities and Institutes of Technology enhanced to 200 per cent.
Tax Proposals - Indirect Taxes
1. Stay on course for transition to GST. Central Excise Duty to be maintained at standard rate of 10 per cent. Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net. Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.
2. Branded garments subject to 10 per cent excise duty.
3 Equipments needed for storage and warehouse facilities on agricultural produce exempted from excise duty. Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent. Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent. De-oiled rice bran cake to be fully exempted from basic Custom Duty. Export Duty of 10 per cent to be levied on its export.
4. Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets. Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent. Cash dispensers fully exempt from basic Customs Duty. Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles. Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology. Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles. Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles. Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted. Basic Customs Duty on solar lantern reduced from 10 to 5 per cent. Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap. Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning.
5. Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects. Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.
6. Exemption from Import Duty for spares and capital goods required for ship repair units extended to import by ship owners. Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment. Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty. Out right concession to factory-built ambulances from Excise Duty. Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.
Service Tax
Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor. Hotel accommodation in excess of Rs. 1,000 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax. Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning. Service Tax on air travel both domestic and international raised. Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net. All individual and sole proprietor tax payers with a turn over upto Rs. 60 lakh freed from the formalities of audit.
Net Position
Proposals relating to Customs and Central Excise estimated to result in a net revenue gain of Rs. 7,300 crore. Proposals relating to Service Tax estimated to result in net revenue gain of Rs. 4,000 crore. Proposals relating to Direct Taxes estimated to result in a revenue loss of Rs. 11, 500 crore and those related to Indirect Taxes estimated to result in net revenue gain of Rs. 11,300 crore.
Queries & Discussions Welcome
Note: The purpose of this note is to provide a brief overview of the key announcements pertaining to the Union Budget 2011. It does not seek to critically examine the various provisions nor is it meant to a complete elaboration of all its provisions. It is possible that some provisions of the Union Budget 2011 could be altered in some respect at the time of enactment of the final legislation. We recommend that advice be sought before taking any action on specific issues.
Tuesday, March 29, 2011
Dealing With Accounting Menace - Accounting
It would really be a hectic task for anybody, even with a business of small capitalization, to garner on the job resources for every extensible area of profession that needs to be applied over to accomplish diversified responsibilities of a business establishment.
With ever pouncing needs of compelling organizational structures and endurable substance in handling dynamic market and finance propositions it has become even tougher for businesses and individuals to keep up with the scales of maturity of books and paperwork of business affairs and other accounting transactions that are of intrinsic value to any organization.
In the professional practice, area of accounts is very vast and is directly or indirectly interconnected to various facets of any business activity. One has to deal with different factors of industrial and government norms aligned with various programs, necessities and obligations of a business setup in order to be compliant with the environment in which it is operating.
Orientations and ends of every framework are different and so are the accounting needs and it becomes all the more typical for businesses to appoint a streamlined and ever pertinent format of its books that could cater to the propelling dynamics of business environment that keeps changing.
Excelling in ones department and sharing other's expertise in one has become the need of the present business environment and being operated wisely by many of the entrepreneurs and managers to get the best output to their resourcing needs of business.
To comply with the times and terms various processes of business and operations have been streamlined and integrated with functional departments of which accounting is marked most important and pervasive.
Financial accounting, management accounting and payrolls are the core area on which any organizational framework revolves and seeks compliance. These are predominantly the functional areas of accounting.
To bring in solutions that fulfill the requirements of all these fundamental functions in the varied segments of propositions validating services of accounting firms are of much need and thoroughly being sought by corporate houses.
Accountancy firms are the professional solution providers of the accountancy solutions and accounting services which hold expertise in payroll accounting which meticulously deal with keeping a record of wages, tax accounting and other deductions to be dealt by business.
These firms possess not only the interface of dealing with the rules and norms but also have proper infrastructure and prominent resources in form of management, chartered and tax accountants and streamlined crew of functional departments of accountancy to deal with accounting menace, unique problems and intricacies in different situations and needs of business accounting.
From recording business transactions and producing the account to calculating and establishing cost of production and preparing the management account all is served by accountancy firms in the most professional manner for varying organizational needs across the domains and applications to meet the core requisites of commerce and business.
With ever pouncing needs of compelling organizational structures and endurable substance in handling dynamic market and finance propositions it has become even tougher for businesses and individuals to keep up with the scales of maturity of books and paperwork of business affairs and other accounting transactions that are of intrinsic value to any organization.
In the professional practice, area of accounts is very vast and is directly or indirectly interconnected to various facets of any business activity. One has to deal with different factors of industrial and government norms aligned with various programs, necessities and obligations of a business setup in order to be compliant with the environment in which it is operating.
Orientations and ends of every framework are different and so are the accounting needs and it becomes all the more typical for businesses to appoint a streamlined and ever pertinent format of its books that could cater to the propelling dynamics of business environment that keeps changing.
Excelling in ones department and sharing other's expertise in one has become the need of the present business environment and being operated wisely by many of the entrepreneurs and managers to get the best output to their resourcing needs of business.
To comply with the times and terms various processes of business and operations have been streamlined and integrated with functional departments of which accounting is marked most important and pervasive.
Financial accounting, management accounting and payrolls are the core area on which any organizational framework revolves and seeks compliance. These are predominantly the functional areas of accounting.
To bring in solutions that fulfill the requirements of all these fundamental functions in the varied segments of propositions validating services of accounting firms are of much need and thoroughly being sought by corporate houses.
Accountancy firms are the professional solution providers of the accountancy solutions and accounting services which hold expertise in payroll accounting which meticulously deal with keeping a record of wages, tax accounting and other deductions to be dealt by business.
These firms possess not only the interface of dealing with the rules and norms but also have proper infrastructure and prominent resources in form of management, chartered and tax accountants and streamlined crew of functional departments of accountancy to deal with accounting menace, unique problems and intricacies in different situations and needs of business accounting.
From recording business transactions and producing the account to calculating and establishing cost of production and preparing the management account all is served by accountancy firms in the most professional manner for varying organizational needs across the domains and applications to meet the core requisites of commerce and business.
Business capital, its environment and accountancy - Accounting
We always try to beat what we have already been getting in terms of benefits and solutions to our needs. Around the mark of our acquired benefactors revolves the ever bigger charm and we have all our attention to bring along that thing into the circle of our possession.
We all has this tendency for we all are human beings and we are supposed to reflect that nature in our living propositions, our communication, deals and most fervently in our business deliberations.
A business always has two things as the most fundamental part of its affairs, one is the capital and another is the environment it is dealing in. al other are just the proponents of the entire framework, including the entrepreneur itself.
Well what is being tried be an entrepreneur in a business establishment is the ownership of all the favorable entities which include money, customers, efficient resources and the position. Well all these are much subjective in terms of their utility and application in the process of business but all of them and every proponent of business are all normalized in the value of numbers and scores.
The system of putting a value of figures and calculating, tracking and contemplating the entire business is all number crunching game and it is about accounting. No matter what tools and strategies one employs in a business and streamlines it to get the access to more units of growth, all it finds their prominence with the values derived by accountancy.
Accountancy is the activity, and most significantly a business phenomenon of putting the organization and its affairs over the sheet with supporting events and calculations which are intrinsic to the process of business.
Accountancy is needed in business to service files, maintain logs, transactions, registering deals, keeping notes of important business data and bills. Functionally it is the idea of supporting the business with more promising framework and more assertive display of its affairs in the environment it is dealing.
Employees, customers, vendors, government, stakeholders, investors, dealers, financers, and the businessman himself need the right accounts for their business to do well in all the directions and dimensions.
Accountancy firms are the redeemers of business houses in this entire setup of financial accounting services. They provide the organization with business tax advice, payroll management, bookkeeping, personal taxation, managing their corporate taxations and various other accounting services that are of fundamental need to any business.
Accounting solution are best is shape and structure when a professional tax accountant serves it with the streamlined practice and expertise in the area. The professional advice of accountancy firms helps the business to deal with the most challenging affairs of business and its two fundamentals; capital which is employed and fabricated in the business and environment in which it operates.
We all has this tendency for we all are human beings and we are supposed to reflect that nature in our living propositions, our communication, deals and most fervently in our business deliberations.
A business always has two things as the most fundamental part of its affairs, one is the capital and another is the environment it is dealing in. al other are just the proponents of the entire framework, including the entrepreneur itself.
Well what is being tried be an entrepreneur in a business establishment is the ownership of all the favorable entities which include money, customers, efficient resources and the position. Well all these are much subjective in terms of their utility and application in the process of business but all of them and every proponent of business are all normalized in the value of numbers and scores.
The system of putting a value of figures and calculating, tracking and contemplating the entire business is all number crunching game and it is about accounting. No matter what tools and strategies one employs in a business and streamlines it to get the access to more units of growth, all it finds their prominence with the values derived by accountancy.
Accountancy is the activity, and most significantly a business phenomenon of putting the organization and its affairs over the sheet with supporting events and calculations which are intrinsic to the process of business.
Accountancy is needed in business to service files, maintain logs, transactions, registering deals, keeping notes of important business data and bills. Functionally it is the idea of supporting the business with more promising framework and more assertive display of its affairs in the environment it is dealing.
Employees, customers, vendors, government, stakeholders, investors, dealers, financers, and the businessman himself need the right accounts for their business to do well in all the directions and dimensions.
Accountancy firms are the redeemers of business houses in this entire setup of financial accounting services. They provide the organization with business tax advice, payroll management, bookkeeping, personal taxation, managing their corporate taxations and various other accounting services that are of fundamental need to any business.
Accounting solution are best is shape and structure when a professional tax accountant serves it with the streamlined practice and expertise in the area. The professional advice of accountancy firms helps the business to deal with the most challenging affairs of business and its two fundamentals; capital which is employed and fabricated in the business and environment in which it operates.
Monday, March 28, 2011
Know About Various Payroll And Accounting Softwares- accounting
No matter what is the size of the company, accounting and payroll software such as Peachtree Accounting software, QuickBooks software, Sage Software are essential requirements to streamline the accounting and administrative issues in any organization. These softwares are among the most important tools to operate an organization smoothly. However, market is flooded with wide range of software and it becomes a bit confusing for the users to choose one to best suit their requirements. Since every software company designing these products tries to sell its products, it is your responsibility to gather enough information about these products and buy the most effective software.
Quickbooks Software
Quickbooks software is one of the most popular accounting software around. This is preferred owing to its comprehensive features, sophisticated and user-friendly interface and other features including very efficient functionality, customizable reporting and affordable pricing. It has largest number of features than any other software of this category. This software will allow you to perform the basic accounting, payroll subscription, invoicing, credit card transactions, prepaid, financial reporting, customer statements and more. It also offers some drill down functionality also at a click of a button. In addition, QuickBooks is self-explanatory with ease of use, simple interface, easy to understand menus and more. One important fact that makes it global choice is its easy availability and support in many parts of the world. You can easily find Quickbooks consultants to help you with any problem you are facing with this software.
Peachtree accounting software
Peachtree Accounting software is an excellent product for small and medium businesses. Once you installed it, you can sit back and relax, as it will take care of all your accounting and payroll activities. Designed and offered by Sage, Peachtree also includes most of the features offered by Quickbooks. It comes with user-friendly and less serious looking interface (unlike grey interface in Quickbooks). With clean layout and interface, it also offers different templates that can be customized to give a personalized look. It offers al the basic accounting functionality including good journal layout, invoicing, credit cards, Pos, SOs and more. Since it is quite cost-effective, you can opt for it if you are starting a small business. However, Peachtree is only US compliant.
Sage Software
Sage software is known for award winning accounting software. Apart from all other usual features, Sage Software offers customizable features that allow you to operate efficiently for the advantage of your organization. Its products are designed to offer high performance, advanced functionality and great flexibility. This software offers you with what you need today in terms of features, technology and deployment options. There are three different versions of Sage 50 Accounts 2011 are there to solve all your accounts related jobs. Apart from providing all basic accounting functionalities, it allows to handle tasks related to small or medium businesses such as cash flow, VAT returns, management of budgets, control and management of stocks, sales and order processing and more. There are some reputed software companies such as a2rsolutions providing wide range of accounting software at reasonable prices.
Quickbooks Software
Quickbooks software is one of the most popular accounting software around. This is preferred owing to its comprehensive features, sophisticated and user-friendly interface and other features including very efficient functionality, customizable reporting and affordable pricing. It has largest number of features than any other software of this category. This software will allow you to perform the basic accounting, payroll subscription, invoicing, credit card transactions, prepaid, financial reporting, customer statements and more. It also offers some drill down functionality also at a click of a button. In addition, QuickBooks is self-explanatory with ease of use, simple interface, easy to understand menus and more. One important fact that makes it global choice is its easy availability and support in many parts of the world. You can easily find Quickbooks consultants to help you with any problem you are facing with this software.
Peachtree accounting software
Peachtree Accounting software is an excellent product for small and medium businesses. Once you installed it, you can sit back and relax, as it will take care of all your accounting and payroll activities. Designed and offered by Sage, Peachtree also includes most of the features offered by Quickbooks. It comes with user-friendly and less serious looking interface (unlike grey interface in Quickbooks). With clean layout and interface, it also offers different templates that can be customized to give a personalized look. It offers al the basic accounting functionality including good journal layout, invoicing, credit cards, Pos, SOs and more. Since it is quite cost-effective, you can opt for it if you are starting a small business. However, Peachtree is only US compliant.
Sage Software
Sage software is known for award winning accounting software. Apart from all other usual features, Sage Software offers customizable features that allow you to operate efficiently for the advantage of your organization. Its products are designed to offer high performance, advanced functionality and great flexibility. This software offers you with what you need today in terms of features, technology and deployment options. There are three different versions of Sage 50 Accounts 2011 are there to solve all your accounts related jobs. Apart from providing all basic accounting functionalities, it allows to handle tasks related to small or medium businesses such as cash flow, VAT returns, management of budgets, control and management of stocks, sales and order processing and more. There are some reputed software companies such as a2rsolutions providing wide range of accounting software at reasonable prices.
Saturday, March 26, 2011
The Need For Accountants Or A CPA - accounting
Every business is in need of a financial expert who can handle complex bookkeeping affairs. Whether it's a multinational company or a local business, accounting is a task best left up to a professional. Do you need an accountant? CPA? Carson City, NV has quite a few firms who can give you exactly what you're looking for. Before hiring such an individual you need to be aware of one thing: to what capacity are you going to allow this professional to be involved in your business. Do you need someone just for the normal accounting tasks? Do you require somebody who does that and also advises you on other financial matters?
Once you have carefully considered these questions, your next task is to find the right person for the job. A bookkeeper will keep your books up to date and his/her main responsibilities involve: determining accounts payable, calculating receivable accounts, filing for tax returns, and a few more. A reliable accountant will perform these tasks on a regular basis so that your company's financial situation is recorded at all times. However, there are certain limitations that an accountant faces. This is where a CPA or a Certified Public Accountant has an important role to play.
At a fundamental level, a CPA's job functions are the same as that of an accountant. Though a CPA has to look after the financial situation of a company, he/she has a bigger say in the monetary matters. A Certified Public Accountant has to meet a number of requirements laid down by AICPA (American Institute of Certified Public Accountants). Even after that, in order to be certified, one has to sit for stringent exams. A to-be CPA also has to have a particular amount of working hours under his/her belt before they can start practicing individually. This 'live internship' has to be carried out under the guidance of an experienced CPA. To say that a Certified Public Accountant is an expert would be an understatement.
All said and done, as a business owner you need to make sure that somebody keeps track of the finances of your company and keep it organized. By hiring a professional to do the job, you can devote time to other important matters as well.
Accountant? CPA? Carson city, Nevada has a number of reliable accounting firms who can take care of your money matters; whether you need just an accountant or something more.
Once you have carefully considered these questions, your next task is to find the right person for the job. A bookkeeper will keep your books up to date and his/her main responsibilities involve: determining accounts payable, calculating receivable accounts, filing for tax returns, and a few more. A reliable accountant will perform these tasks on a regular basis so that your company's financial situation is recorded at all times. However, there are certain limitations that an accountant faces. This is where a CPA or a Certified Public Accountant has an important role to play.
At a fundamental level, a CPA's job functions are the same as that of an accountant. Though a CPA has to look after the financial situation of a company, he/she has a bigger say in the monetary matters. A Certified Public Accountant has to meet a number of requirements laid down by AICPA (American Institute of Certified Public Accountants). Even after that, in order to be certified, one has to sit for stringent exams. A to-be CPA also has to have a particular amount of working hours under his/her belt before they can start practicing individually. This 'live internship' has to be carried out under the guidance of an experienced CPA. To say that a Certified Public Accountant is an expert would be an understatement.
All said and done, as a business owner you need to make sure that somebody keeps track of the finances of your company and keep it organized. By hiring a professional to do the job, you can devote time to other important matters as well.
Accountant? CPA? Carson city, Nevada has a number of reliable accounting firms who can take care of your money matters; whether you need just an accountant or something more.
Ontario CPA are highly qualified - Accounting
CPAs popularly known as Certified Public Accountant. They are highly qualified as well as certified and are subjected to various quality tests such as entrance exam and all and have successfully achieved the best possible rank in it. That is why they are called Certified Public Accountant.
Many times only those CPAs who are licensed, only they can practice freely and do the jobs for the public interest such as public attestation, auditing, judging financial statements. They are hardworking as well as committed to their work. The Ontario CPA can help in all such conditions related to accounts.
Ontario CPA is responsible for varieties of duty assigned to him. The duties include assurance of the public accounting. It also includes auditing as well. They can also attest various documents for the public as they have got the authority for that. Financial documents are also attested by them. When they are hired by various public sectors then they are not allowed to interact with the public directly. If someone is found to do that then at that particular time he or she is fired for violating the rules and regulations of that particular company or organisation. They are not allowed to do the same. It can spoil their reputation as well as the work environment.
In some companies they are also facilitated with the designation of Chief Financial Officer and are liable for companies growth and development and all the financial transactions as well as records. The consultant CPAs are not allowed for auditing jobs.
Ontario CPAs are also hired in the income tax departments of many small and medium sizes industries where a lot of tax related work is done. There are different sets of work that are provided or done by the CPAs. It can be through the private sectors or even individually. They can also work virtually in more or less all the areas of finance. There are many websites which provide detailed information regarding the list of the CPAs available in the town, with all their details as well as their fees sometimes. But be careful while making the decision to hire them.
Many times only those CPAs who are licensed, only they can practice freely and do the jobs for the public interest such as public attestation, auditing, judging financial statements. They are hardworking as well as committed to their work. The Ontario CPA can help in all such conditions related to accounts.
Ontario CPA is responsible for varieties of duty assigned to him. The duties include assurance of the public accounting. It also includes auditing as well. They can also attest various documents for the public as they have got the authority for that. Financial documents are also attested by them. When they are hired by various public sectors then they are not allowed to interact with the public directly. If someone is found to do that then at that particular time he or she is fired for violating the rules and regulations of that particular company or organisation. They are not allowed to do the same. It can spoil their reputation as well as the work environment.
In some companies they are also facilitated with the designation of Chief Financial Officer and are liable for companies growth and development and all the financial transactions as well as records. The consultant CPAs are not allowed for auditing jobs.
Ontario CPAs are also hired in the income tax departments of many small and medium sizes industries where a lot of tax related work is done. There are different sets of work that are provided or done by the CPAs. It can be through the private sectors or even individually. They can also work virtually in more or less all the areas of finance. There are many websites which provide detailed information regarding the list of the CPAs available in the town, with all their details as well as their fees sometimes. But be careful while making the decision to hire them.
Friday, March 25, 2011
How Your Business Can Benefit From Accounting Services - Accounting
There are many things that should be taken into consideration when running a business. Aside from marketing, sales, and production, there are still more that you should also give attention to keep your business alive. One thing that should not be ignored in any business, whether it is just a starting company or already established, is accounting. This is because accounting gives you clear figures about the financial status of your company and gives you a clear picture of the future of your company. The good news is that today, there are a lot of firms offering accounting services and whom you can delegate these important matters to.
Most especially if you are not an experienced accountant or you do not know much about this matter, seeking help from an accounting firm will definitely benefit your business. Accounting services give you an idea about your company's financial status, as well as help you enhance your business potential. This is why many businesses, small or large, opt to hire an accountant to do accurate accounting for them.
One of the reasons why hiring a professional is beneficial is that it lets you save time. An accounting firm can help you do pivotal tasks which if you do yourself would eat up a huge chunk of your time. One of the most important accounting services that you or your business can benefit from is tax preparation. Although you can do this yourself, it is still best to hire an expert in this matter to avoid mistakes that may lead to legal consequences. In addition to accuracy of work, accountants can also advice you on how you can enjoy maximum tax benefits. They not only file tax for you but also help you record your accounts payable and receivable, loan details as well as invoices so you know each of your company's financial transaction.
Hiring accounting professionals also assures you that the financial aspect of your business is taken care of. And because they are expert in this matter, they also protect you from mistakes. Most accounting services providers today use accuracy tools, like software, so as to avoid manual errors.
Because hiring accounting professional handle the books and keep record of your business performance, then you have more time on how to make better sales and how to boost your profits.
Moreover, accounting firms know what numbers mean, thus they can give you a clearer picture of where your company is heading to. Accounting professionals can give you accurate statements and can advice you and help you make an informed decision whether in terms of investment opportunities or infrastructural expansion.
Hiring accounting professionals provide you solid figures in the financial aspect of the business, including profits and expenditures. This also allows you to determine which part of your business you should focus on to boost your income or avoid losses.
These are just some of the benefits of using accounting services and these are just some of the reasons why even small companies today hire accounting professionals. Fortunately, anyone can now avail such services by doing a search online.
Most especially if you are not an experienced accountant or you do not know much about this matter, seeking help from an accounting firm will definitely benefit your business. Accounting services give you an idea about your company's financial status, as well as help you enhance your business potential. This is why many businesses, small or large, opt to hire an accountant to do accurate accounting for them.
One of the reasons why hiring a professional is beneficial is that it lets you save time. An accounting firm can help you do pivotal tasks which if you do yourself would eat up a huge chunk of your time. One of the most important accounting services that you or your business can benefit from is tax preparation. Although you can do this yourself, it is still best to hire an expert in this matter to avoid mistakes that may lead to legal consequences. In addition to accuracy of work, accountants can also advice you on how you can enjoy maximum tax benefits. They not only file tax for you but also help you record your accounts payable and receivable, loan details as well as invoices so you know each of your company's financial transaction.
Hiring accounting professionals also assures you that the financial aspect of your business is taken care of. And because they are expert in this matter, they also protect you from mistakes. Most accounting services providers today use accuracy tools, like software, so as to avoid manual errors.
Because hiring accounting professional handle the books and keep record of your business performance, then you have more time on how to make better sales and how to boost your profits.
Moreover, accounting firms know what numbers mean, thus they can give you a clearer picture of where your company is heading to. Accounting professionals can give you accurate statements and can advice you and help you make an informed decision whether in terms of investment opportunities or infrastructural expansion.
Hiring accounting professionals provide you solid figures in the financial aspect of the business, including profits and expenditures. This also allows you to determine which part of your business you should focus on to boost your income or avoid losses.
These are just some of the benefits of using accounting services and these are just some of the reasons why even small companies today hire accounting professionals. Fortunately, anyone can now avail such services by doing a search online.
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