Why You Need a Chartered Accountant for Business

A chartered accountant is a highly knowledgeable and skilled profession who shows his expertise in the field of finance including tax, audit, cost accountancy, share management etc. These professionals either consult public in their own units, work in private organisations or appointed by government departments. Almost every organisation and business units appoints chartered accountants to cater to all financial needs.

The various charted account services needed for a business are:

Maintaining Accounts

A chartered accountant keeps and maintains various accounts of the company, update it and prepare financial statements. The preservation of accounts by CA can range from book keeping to intricate financial analysis.

Audit

One of the vital chartered account services is auditing. It involves checking and validating the authenticity of the accounting figures, principles and methodologies of the company.

Taxation

The CA of the company is responsible for assessing taxes, preparing tax returns, consulting on tax control measures and auditing cases with large revenue. A CA also renders advice on different investment schemes to companies and individuals for saving on taxes.

Cost Accountancy

All CAs have the competency to determine the cost of production and services and suggest cost control methods. CAs also suggest costing information of a company and suitable selling prices of different products and services.

Share Valuation

During mergers and take-overs, CAs underwrites the valuation of shares of private and public companies.

Investigation

Finding out the financial position of a company in relation to issuance of new share capital, newly acquired business units, sale and sponsorship of a business and reconstruction of a company is another important chartered account service.

Executorship

A CA may act as an executor or trustee under a will in order to run the functioning of an estate or house. In this kind of chartered account service, the CA works in close association with lawyers and solicitors and assist them in accounting matters.

Secretarial Work

A CA may also play the role of a company secretary in MNCs and other large set-ups. There the CA along with his regular finance jobs also works with core management team and manages the general operations of the company.

Policy Maker

A CA often acts as a policy maker of a company. He is also responsible for formulation and successful execution of the company along with daily checks and performance assessment.

Directorship

The practice of appointing a CA as one of the company directors is in practice and well-known. The benefit of having a CA in the Board of Directors are many including well-planned financial management and guidance on principles of organisation and ways of effective delegation of work.

Other Services

Along with these, there are other chartered account services like:

• Secretarial and registration work of the company
• Developing company MIS
• Designing company budget
• Developing methods of capital utilization

Guides for Taxation Service in India

Taxation service is the most important and complex component of any financial planning. Tax consultants have special expertise in rendering taxation services which include suggesting incometax saving tips, consultancy on tax laws and planning for future taxation. Companies that render taxation services to people and firms work with a highly competent and knowledgeable team of professionals who provide multi-faceted facilities related to tax. The areas where these companies actually help are country and inter country tax advisory, tax accounting, tax performance advisory, tax policies and controversies, transaction taxes, VAT, GTS and other sales taxes. The details of the taxation services in India are as follows:

Direct Tax Consultancy

The tax experts act as consultants and prepare tax returns for individuals, companies and NRIs. They also play the role of executors, assessing officers and trustees under the will. Tax consultants help the clients to obtain PAN, tax deduction account number, TDS services, filing income tax returns and e-TDS returns and providing guidelines on incometax saving tips.

International Tax Consultancy

Tax experts assist client in international taxation affairs getting necessary approvals and sign-offs on foreign investments from controlling bodies like Reserve Bank of India, Foreign Exchange Promotion Board and Secretariat of Industrial Assurances (SIA) together with Liaison with Directorate General of Foreign Trade (DGFT) and Ministry of Industries. The services also include:

• Suggesting the process of withholding tax on foreign remittances as per tax laws
• Guiding the process of issuing Foreign Remittance Certificates
• Providing technical knowhow about various international tax legislation policies and acts
• Helping to get certificates from the International taxation department
• Assisting in documentation and remittance support
• Guiding expats in understanding tax requirements in global business

Transfer Pricing

Transfer pricing resolutions can play an important role in addressing the issues of limited cash flow and reduced credit facilities of companies. Tax consultants render service in helping firms in the transfer pricing policies in India along with reporting, documentation and certification.

Tax Consultancy for Corporate Clients

Rendering tax consultancy services for corporate clients is another vital taxation services in India. Such services include:

• Communicating to various tax notices and providing essential assistance on regular tax matters.
• Managing tax records, documents and reports in both Soft and Hard copies
• Maintaining tax compliance that includes advance Income tax and Fringe Benefit Tax and filing returns on time and assembling of Corporate tax returns such as IT and Wealth Tax
• Compilation of tax reports for scrutiny and audit
• Support to get online tax credits
• Tax reporting to parent companies on monthly, quarterly and annual basis.
• Helping companies to manage report indirect tax benefits such as VAT
• Guide in various processes of tax computations and complex calculations
• Supervises as an advisory on various tax issues like capital gains, profit and loss

Factors to Consider before Setting-up a Business

Setting-up and starting your own business unit is thrilling and challenging at the same time. Market survey says that every 3 out of 4 business close within 3 years due to non-compliance of policies and strategies.

Settingup of business can face economic, political and social constraints, manpower issues, concerns about raw material supply and problems of market demand, strength of competition and condition of the economy.

There are few dynamics that should be considered before starting up a business in order to assure long term success and profitability.

Experience

One of the key factors that needs to be taken into account before setting up a business is the experience and exposure of the entrepreneur. If someone wants to take-up a new venture, he/she should work in that domain or industry for a couple of hours in order to gain adequate knowledge and expertise.

Market Scenario

For setting up a business of a product or service it is extremely important to study the market, assess the demand for the product or service and analyse the competition and its strength and weaknesses. It is also advisable to conduct appropriate market surveys and interact with potential customers.

Economy

One of the prime factors to consider before setting up a new business is the present economic condition. If the economy is down and descending it is better to wait and watch the situation improve or start in a small scale. But there are certain business set-ups that are recession proof and do not depend on the condition of the economy. They are healthcare, education, energy, fast food, candies and skilled services.

Finance

The most important among all the factors to consider before settingup a business is finance or funding for the set-up. Adequate and appropriate funding from the right source is the foundation of every new venture.

Business Plan

A well-formatted and devised business plan is needed prior to take-off. The plan helps in structuring of ideas and sharing the plan with others may help to gain financial assistance, business partners and potential investors.

Manpower

Every new business requires immense skilled man power who gel with the business environment and enhances productivity in the set up.

Time

Every entrepreneur should remember that time is very vital for their new business set-up. Starting from small scale home business to large scale retail chains, time is needed for client handling, paperwork, operations and admins, complaint resolution and maintaianence of accounts and records.

Strain

Setting up a business is inspiring, thrilling and tiring at the same time. A person can gain stress and anxiety due to excessive physical and mental work pressure, sudden changes, and client escalations, scarcity of fund, orders and demand.