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Accounting and Book Keeping

Book-keeping is an art of identifying, approving, sorting and record-keeping company’s financial transactions in a manner that they can be retrieved and presented for the higher management reporting.

It is the process of recording financial transactions of business daily. It is a part of accounting process that records the financial affairs of the company in the form of journal entries. It is a means of entering data into the accounting system. Therefore, accurate, reliable and complete book-keeping becomes a significant source of information for any business. Manish Anil Gupta & Co. is known for providing the best accounting and book-keeping services in Delhi.

Components of Financial Statements that every business should maintain:

There are several crucial Financial Statement components that every business needs. It’s not just a compliance concern; they are vital tools to understand your business’s performance and financial health. The components of Financial Statements are as follows:

1: Income Statement

An Income Statement is a snapshot of the business’s income and expenses during a given period of time (e.g., quarterly, monthly, or yearly). It shows the organisation’s profitability and tells how much money the business has made or lost.

2: Balance Sheet

A Balance Sheet shows a business’s financial standing at a single point in time by displaying its assets, liabilities and capital. It shows the current value of a business, and by looking at the Balance Sheet, one can understand if the organisation can meet its financial obligations.

3: Notes to Financial Statements

Notes to Financial Statements give greater context around the information contained in your financial statements. For example, the assets may be listed in the Balance Sheet, but the notes to financial statements will precisely explain those assets, such as the depreciation charged on them, the components of those assets, etc. The information in this document is required to ensure that the business complies with standards and regulations.

4: Cash Flow Statement

A cash flow statement indicates the sources and utilisation of cash for a given period of time. The cash flow statement informs investors and creditors about the solvency of the business, where the business is receiving its cash from, and where it is spending it.

5: Statement of Change in Equity

This document shows the changes made to a company’s share capital, retained earnings, and accumulated reserves. For a sole trader, it shows changes to the owner’s equity. For a partnership firm, it shows the changes among the partners’ equity. In the case of a company, the statement of change in equity shows how equity share has changed among all the shareholders.

If you don’t know how to prepare the statements mentioned above, you can go for accounting outsourcing in Delhi and hand over the responsibility of maintaining the books of your business to a trustworthy accounting firm in India that can provide you with expert accounting outsourcing services. If you are looking for the top accounting firms in Dwarka, you can approach us, as we are one of the best accounting outsourcing companies in India and would be happy to serve you with the most satisfactory Accounts outsourcing services in Delhi.

Importance of Book-keeping

  • Organized Accounts:

An organized record of financial transactions plays an essential role in tracking their income/revenues and expenses.

  • Timely Preparation of Financial Results:

With book-keeping, it becomes simple to prepare the financial statements, i.e., Profit and Loss Account, Balance sheet, Cash flow statements and Fund flow statements.

  • Better Overview of the business:

Book-keeping provides an overview of the business from time to time and therefore, helps firms to examine their present situation.

  • Future Planning and Action:

Book-keeping is the preparation of systematic accounts, which helps the businesses to shape up their future budget.

  • Better Decision Making:

Book-keeping services are a must for analyzing the financial data. They help in making profitable decisions. 

  • Better Growth:

A business can grow, if you analyze the growth and profitability by tracking the financial records, which can be only proposed by the right book-keeping.

  • Better Financial Management:

Book-keeping provides better answers to the questions such as where the organization spends money, to whom it pays, outstanding dues, outstanding payments, etc. It helps the organizations to manage their finances properly.

  • Goal Planning:

To adhere to the goals, organizations need to concentrate on the result- achieving process along with the deviations. 

  • Tax Planning:

The books of accounts managed effectively and efficiently can help in a detailed analysis of the financial transactions, which can be used for tax planning.

  • Audit of Accounts:

Book-keeping provides well-defined and periodical data to the auditor by maintaining proper books of accounts which saves the auditee from any adverse remark in the audit report.

  • Legal Requirement:

The law requires the businesses to maintain the books of accounts on a regular basis, it becomes imperative for the organizations to opt book-keeping services. 

Benefits of Accounting & Book-keeping

  • Saves time

  • Better accounts receivables and payables management

  • Improves data security

  • Minimizes risk

  • Reduces overhead cost

  • Better decision making

  • Improved work quality

  • High level of accuracy

  • Increased profits and growth

Accounting and Bookkeeping at MAG          

Appropriate book-keeping is decisive for keeping track of the financial performance of the organization. It facilitates the management to make informed decisions knowing how the organization is performing and what corrective actions are required. 
At MAG, our book-keeping services endeavours at cost reduction and cost management for our clients. A specialized and experienced team of accounting professionals have been assigned to cater to customer’s requirements and provide the finest accounting outsourcing services India. So, if you are seeking the best Accounting and Book Keeping services for your business, you can reach out to us at Our experienced team will ensure that your books are maintained following the applicable rules and adhere to the relevant Accounting Standards.


Frequently Asked Questions

Outsourcing bookkeeping to a 3rdparty has many benefits. Primary among these benefits is preserving the integrity of the books.Beyond that, outsourcing bookkeeping to a professional helpto ensure that your compliances are met in a time bound manner. Also, most importantly, by outsourcing bookkeeping, you have more time to focus on the day-to-day operations of your business.
They are not the same, but they go hand in hand, and both are extremely important for every business. Bookkeeping means recording financial transactions, whereas accounting refers to analysing, interpreting, reporting, and summarising financial data.

A bookkeeper will assist you with recording financial transactions, compliances, and lodgements that keep your business running smoothly. At the same time, an accountant will analyse the data produced by your bookkeeper to minimise error and omissions.
Yes, all businesses must maintain books of accounts to estimate their tax liabilities, better decision-making, prepare financial statements, and comply with the legal requirements (if applicable).
Accounting software is a computer program that helps in recording and reporting an entity's financial transactions. It has different kinds of modules through which it works, such as General Ledger, Account Receivables, Account Payables, etc. It helps perform and understand the calculations easily and analyse the financial information. Examples of accounting software include Tally, Busy, etc.
The key difference between cash and accrual basis of accounting lies in the timing of when transactions are recognised and recorded in the books of accounts.

Under the accrual basis of accounting, transactions are recognised and recorded when they occur, even if cash is not received or paid. While under the cash basis of accounting, transactions are recognised and recorded when cash is actually received or paid.

Cash-based accounting is easier, but accrual-based accounting portrays a more accurate picture of a company's health and financial performance.
Book-keeping is important for a business as it helps in financial management, decision-making, tax planning, audit compliance and legal requirements.
The components of financial statements are income statement/Profit & loss statement, balance sheet, notes to financial statements, cash flow statement.
Book-keeping records financial transactions, which are used to prepare financial statements such as profit and loss statement, balance sheets, and cash flow statements.
A statement of change in equity shows the changes in shareholder's equity during a specific period, including net income, dividends, and other adjustments.
Book-keeping can help identify financial irregularities, prevent fraud, and ensure compliance, reducing the risk for the business.
Book-keeping helps in tax planning by maintaining accurate records of income, expenses, and deductions, and providing information for tax returns.
Professional bookkeeping services help businesses maintain accurate financial records, ensure compliance, save time, reduce errors, and provide valuable insights for better financial management.
Common accounting methods include cash basis accounting, where transactions are recorded when cash is received or paid, and accrual basis accounting, where transactions are recorded when they occur, regardless of cash flow.
Accurate bookkeeping ensures that all financial transactions are properly recorded, categorized, and documented, simplifying the tax preparation process and minimizing the risk of errors or discrepancies.
Improving cash flow management involves monitoring and projecting cash inflows and outflows, optimizing accounts receivable and payable, managing inventory efficiently, and implementing effective budgeting and financial planning.

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