Uses of AccountingAccounting plays important and useful role by
developing the information for providing answers to many questions faced by the
users of accounting information.
(1) How good or bad is the financial condition of the business? (2) Has the business activity resulted in a profit or loss? (3) How well the different departments of the business have performed in the past? (4) Which activities or products have been profitable? (5) Out of the existing products which should be discontinued and the production of which commodities should be increased. (6) Whether to buy a component from the market or to manufacture the same? (7) Whether the cost of production is reasonable or excessive? (R) What has been the impact of existing policies on the profitability of the business? (9) What are the likely results of new policy decisions on future earning capacity of the business? (10) In the light of past performance of the business how it should plan for future to ensure desired results ? Above mentioned are few examples of
the types of questions faced by the users of accounting information. These can
be satisfactorily answered with the help of suitable and necessary information
provided by accounting.
Besides, accounting is also useful
in the following respects :-
(a) Increased volume of business
results in large number of transactions and no businessman can remember
everything. Accounting records obviate the necessity of remembering various
transactions.
(b) Accounting record, prepared on the basis of uniform practices, will enable a business to compare results of one period with another period. (c) Taxation authorities (both income tax and sales tax) are likely to believe the facts contained in the set of accounting books if maintained according to generally accepted accounting principles. (d) Accounung records, backed up by
proper and authenticated vouchers are good evidence in a court of law.
(e) If a business is to be sold as a going concern then the values of different assets as shown by the balance sheet helps in bargaining proper price for the business. |
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Note for International VAT USers and GST Users in India
Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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