accounting book or course

[Due Quach]

Dear All,

I would like to propose that Amit buy a good basic accounting book or take an intro accounting for small businesses course or workshop. 

We need to start keeping track of the numbers in a professional manner according to the official Indian Accounting Standards. Even if we eventually hire an accountant to do the bookkeeping, someone in mangement, usually the CFO (chief Finance Officer) needs to have a sufficient understanding of accounting and Indian regulations to double check and supervise the accountant. 

Generally, accounting is done under a ledger system, whereby a number of different accounts are tracked and adjusted with credits and debits. 

In Accounting, we differentiate between when a cash transaction and when a liability (Amount we owe) or a receivable (Amount owed to us) has arisen, because there is usually a time lag between the two. 

For instance, when we receive a paypal transfer for 5 healing sessions, we don't pay the healer until they have finished the healings and submitted the proper paperwork. 

Between when the customer has paid and the healings are done, we have a liability to the customer to provide the healings. 

Between when the healings are done and the payment to the healer is made, we have a liability to the healer. 

In the annual report and tax filings, companies usually have to present the following:

Balance Sheet  (Total Assets = Total Liabilities + Equity)

Income and Loss Statement

Statement of Cash Flow

These forms have to be compiled at least twice a year (in public companies it is done every quarter) and presented by the management team to the board for review and approval. Normally, the finalized statements are submitted after the end of the fiscal year and then filed with the government.     

Thanks,

Due 

[Amit Singh]

Dear Due,

For the below mentioned process we will have to hire a Chartered Accountant who will file all the formalities on behalf of the company to the government for the documentation.
 As Vikash and me both are from the accounting background we are theoretically  aware of the process .A CA or a certified accounting professional can file for the taxes of a company.
 In order to do that first we will have to register our company. Which will require capital. As mentioned in the last mail by first week of August we will get the complete information about which kind of formation will suit us the best. And after which we can move on to complete the formalities.
I did speak to Vikash about the meeting with the CA. Will update the team once the meeting is finalized.

Thanks & Regards,
Amit