Many people use the terms book keeping and accounting interchangeably, but the fact is the former is the first step to the latter, i.e. book keeping is the stepping stone of accounting.
Book keeping is an activity of recording the financial transactions of the company in a systematic manner. For example Transaction day book, Journal and Ledgers.
Accounting is an orderly recording and reporting of the financial affairs of an organization for a particular period. For example Balance Sheet, Profit & Loss Account and Cash Flow Statement. Accounting clearly shows the financial position of the entity which mare book keeping job does not.
LEGAL REQUIREMENTS- Various Law Regulating the business and Taxation in India has put legal compulsion to main Books of Accounts as per Law and Guidelines.
A. Under Income Tax Act
B. Under the Companies Act 2013
C. Under GST Act
Books of Accounts to be preserve for atleast 6-8 years under the provisions of different Acts in India.
FinTaxx aims to be your trusted Book Keeping and Accounting outsourcing service provider, enabling you to focus on your core business. We offer a wide range of services along with reporting, Analysis on a periodical basis which helps to project your future plan or to take important decision based on the Financial Statements.