International Tax Consultancy Archives

Significance of Accounting for Startups

Accounting must be given prime importance in any business entity as it is most required, especially for controlling and for providing financial reports at the end of the year. Accounting will help a Startup to determine its productivity and its profit from the initial stages of the company. This provides entrepreneurs a method for maintaining accounting information. The accountant hired by the company will keep track of the money spent for business use as well as for personal use, this will help in strategizing on how the money can be saved. In the initial stages of a Startup, the company must hire consultants or interim CFOs to maintain simple accounts rather than spending more on in-house professional resource.

Benefits of Accounting for Startups in Initial Stage

Forecasting Financial Estimates

Every Startup needs to provide information regarding its financial estimates to banks, investors or lenders to obtain funds in return from them. Accounting helps the business to make a business plan which includes estimated monthly expenditure, economic forecast, projected rate of growth of the Startup. This information is really important for a Startup to lure more and more investors to invest in their idea. The investors also ensure that the entrepreneur has a reliable projection of its company’s financial expectations.

Determine Profitability

Accounting helps an entrepreneur to determine its profitability in the future. It helps in monitoring the progress of the company and also to make necessary amendments where necessary. Through accounting, entrepreneurs will get to know where they need to use their assets to generate profit. An entrepreneur also needs to provide financial information to its investors to ensure them that they will be paid in a timely manner. A monthly statement such as a balance sheet and an income statement shows how if a business is blooming or not, these statements helps in determining a business general profitability.

Budget Expenses

Accounting helps an entrepreneur in setting up a Budget for expenditure on various aspects affecting a Startup. Accounting helps in maintaining records of the cashflow in the business, capital is used in hiring of employees, advertising, purchasing of inventory, petty items. Budget helps an entrepreneur is reducing expenditure on not so essential items and by saving the capital for future purposes.

Payroll Accounting

Accounting for startups help an entrepreneur to record its employees’ compensation such as salaries, bonuses, commissions and any other means earned by an employee. It also maintains employees’ portion of Health insurance premium, Social security taxes, paid holidays. This creates a database for the company consisting of all of its employees. Entrepreneurs must consult accounting professionals during the incorporation of its business. This is a must for an entrepreneur as outsourcing will help a company to grow much faster with the help of a trained professional. Outsourcing helps in many ways such as:

Tax Specialization

Taxation is a main aspect where a Startup may face some difficulties beyond the areas of fund raising and finance. This is where trained professionals like Chartered Accountants play a crucial role in the growth of the Startup. A trained professional who knows the tax laws whether it may be direct tax, indirect tax or any other tax involved will smoothen the working of the business. Well managed and transparent taxation is one of the most required aspect in Accounting for Startups.

Focus on Business

An accountant helps an entrepreneur by letting them focus on their product rather than worrying about the finance. The entrepreneur can create partnerships, create relationships, market its product with the help of an accountant. It will provide valuable information to the business to make it grow and earn profits. An accountant will also help in covering the cost as well as reducing the expenses incurred by the company.

Secretarial Duties

A professional accountant can also perform duties of a company secretary as they are specialist in company law. They also see to it that the company is complying and adhering to the laws laid by the Company Act, 2013. Start-ups strictly need to follow these rules from the start as it may result in the dissolution of the company.

Valuable Business Partner

Outsourcing accounting gives a huge importance to start-ups as these outsourcing firms have wide range of expertise working under them. This support from such firms will be very valuable for the Startup as it has a lot more experience when it comes to raising funds, financial planning, financial reporting. It is better to get financial assistance from trained professionals at the early stages of a Startup as it makes the business develop and grow faster. Many entrepreneurs lack accounting skills and tend to make wrong decisions regarding accounting which acts as a negative aspect in accounting for startups.

For more information on Importance of Accounting for Startups, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

More Newsletter

Activities to Be Performed after Incorporation Of Company

Outsource Your Bookkeeping and Accounting Services

One India one Tax- GST

Tax Accounting Services for start-ups and small businesses

Union Budget 2016-17, Keypoints for Startups

Outsourced Accounting Services

Hire Gapeseed Consulting for M.I.C.E Services?

PROCEDURES and DOCUMENTATION FOR STARTUPS

Basics For Incorporating A Startup

Payroll Services for Startups

Once you have set your business and are on the stages of expanding it many of the entrepreneurs wonder whether they should make foreign investments or operations or not. When it comes to an international market operation things get a bit complicated as it creates a variety of structures at the same time you need to select the right tax advisor that has competency in that particular commercial area. The boundaries of international taxation has been increasing this is where the international taxation consultancy is require who can tackle all the compliances related to international taxation.

We at Gapeseed Consulting provide all required services which give all the solutions related to International Taxation Consultancy, we can help you understand your tax situation; you must first work out whether you are an Indian resident for tax purposes. Indian residents are generally taxed on their worldwide income from all sources. Foreign residents are generally taxed only on their Indian-sourced income, such as money they earn working in India.

Some of the services we offer are:

Transfer pricing planning and documentation:

Tax authorities are everywhere and are always eager to get revenue, not only that but they are imposing new, stricter transfer-pricing documentation requirements on companies – and sharply escalating audits and inspections – with significant penalties for non-compliance.

Meanwhile, as you expand your operations to compete on an international scale, your cross-border transactions – sales of goods, provisions of services, licensing of intellectual property, lending of funds, etc. – will continue to grow in frequency and complexity.

At Gapeseed Consulting we understand the increasing globalisation, faced with increasingly burdensome compliance globally. In many businesses a new sense of urgency about maintaining effective and consistent transfer pricing documentation across all tax jurisdictions in which they do business.

Dispute Resolution:

Our international taxation consultancy tax dispute resolution network assists taxpayers in this emerging area. We can work with you to efficiently manage, and favourably resolve tax audits and disputes throughout the world. We have tax specialists to assist our clients in virtually every area of dispute. We combine deep technical understanding, local knowledge and strong relationships with government officials, tax litigation experience, and a global perspective to provide you with best of the services.

Advance pricing agreement:

We can help your company to obtain advance pricing agreement covering a broad range of intercompany transactions. We have our professionals who hail from industry, and with foreign governments—including senior-level positions in governmental agencies responsible for administering advance pricing agreement.

We can work with you to develop strategies at both the global and local level, and guide you through the process of requesting advance pricing agreement to help you ensure successful outcomes.

Intellectual property valuation:

Our experienced team of IP and intangible asset valuers apply commercial valuation principles and adopt a range of complex valuation methodologies to produce robust analysis to assist in negotiations, decision making, legal disputes and investment analysis.

We have in-depth sector experience across a broad range of industries and are therefore familiar with working alongside marketing, sales, technical and research staff to gain a deep insight into the subject IP.

Our services include:

Valuing a brand or other IP in relation to a potential sale or licensing agreement. Considering the value of brand, technology or other assets in the context of a contribution to a joint venture or alliance. Valuing IP / intangible assets for financial reporting purposes under international, US and UK accounting standards. Providing independent valuations of IP for commercial disputes or expert witness reports. Assessing the market value of IP/intangible assets for tax purposes.

If you would like to know more about our international taxation consultancy for your businesses you can drop us a line here or, call +91-9599444639/+91-9599444630

More Newsletter

Taxation for Expatriate

Gapeseed’s Accounting Services for Small Businesses

FRRO and Taxation Services for Expats in India

Business Support Services for International Businesses

Hire Gapeseed Consulting for M.I.C.E Services?