6 Things a Chartered Accountant Does for You

A number of elements contribute to the success of a business. Consider, for example, product and service quality, brand value and marketing skills. But what is it that manages all of these things? All businesses need the helping hand of a chartered accountant whose financial advisory and planning services can escort you from zero to zenith within days.

The general conception is this that a chartered accountant is only needed to file tax returns and make balance sheets of your company – but there’s much more to it. A seasoned financial advisor is an essential asset to shape your business’s current structure and ensure your company’s growth graph always points north.

Bookkeeping

Bookkeeping or record keeping is the foundation of a business’s financial system. It means keeping all the records of your financial transactions for your business. If done properly, bookkeeping can be one of the primary reasons for your business expansion. That’s what a CA takes care of. He analyzes all your transactions, looks into the possibility of claiming for tax relief, prevents any undue expense, and makes provisions for business expansions whenever possible.

Formulating Business Plans

It’s the extensive knowledge in their field and strategic understanding of the current and potential situation that help chartered accountants in planning business growth.

The professionals in the field are well-versed in all terms and terminology of accounting. Once they get familiar with your brand, they can proficiently analyze how productive a business plan and strategy can be for you. Additionally, they can fine tune your existing business plans to make the most of all possible opportunities.

Auditing

Auditing refers to the official inspection of a company’s accounts and records, and it’s an extremely tedious task. However, hiring a professional CA will make things sail smoothly as they are brilliant at their job and can prevent any hiccups from interrupting your business affairs.

Cost Controls

Yes, true…chartered accountants are expert in making budgets by balancing the fixed and variable costs incurred by companies. In fact, no one other than a CA is a good option when it comes to cost controlling and increased profits, both in dull and fast expanding days.

Financial Compliance

With the growth of a business, many complexities revolving around business procedures and tax requirements shoot up. Now, this is where you can put the expertise of an expert financial advisor to good use. A specialist in the field will assist you in effective tax planning and consultancy to cut down the tax you pay to the government. Besides, they use their experience, knowledge, and foresight to prepare in advance for approaching taxes. You can always count on professional CAs to be in compliance with all the relevant regulations and stipulations.

Merger and Acquisition

It is the valuable counsel of an expert CA that can be utilized to expand business operations through mergers and acquisitions. A knowledgeable chartered accountant will analyze the financial and legal implications to decide if the deal is profitable in regards to the present costs and potential growth.

While there’s much more an experienced CA can do for your business, these 6 are the ultimate services which, if given a careful consideration, can help you script a success story for your business. In case your business needs the expertise of one of the best-chartered accountants in Ambala, India, contact us for assistance.

5 Major Changes in Income Tax Rules from April 1, 2018

As per financial calendar, New Year starts from April 1, bringing changes to many things in personal finance and every tax payer needs to be aware of the new rules in income tax as these not only impact our earnings but also our day-to-day lives.  Right from the introduction of LTCG in equities to the introduction of standard deduction for salaried employees, a number of tax changes have been announced by the Finance Minister. Let’s go through the major 5 tax changes you need to know.

  1. Pay LTCG tax on stock market investments

Profits made through stock market investments are not exempted anymore. Now, you will have to pay 10% tax on your profits if you held equity-oriented mutual funds and stocks for one year. The tax implements to only those whose profits exceed Rs 100,000 in a financial year.

Please note that your profits made till Jan 31, 2018 are protected, as the rule will come into effect for profits made after 31st Jan.

  1. Higher CESS

A new CESS has been proposed: Health and Education CESS. This time it has been increased by the government from 3 percent to 4 percent for individual taxpayers on the amount paid as income tax.

  1. Senior citizens can get medical treatment for specified diseases

Currently, resident individuals and HUFs (Hindu Undivided Families) get benefit of the deduction for the amount proposed for the medical treatment of diseases like malignant cancers, AIDS, etc.  For now the deduction of amount is limited to Rs 60,000 for senior citizens and Rs 80,000 for very senior citizens. The new budget has proposed to make enhancements in the deduction limit and increased it to Rs 100,000 equally for both senior as well as very senior citizen categories.

  1. Income tax benefit on NPS withdrawal

In budget 2018, Indian finance minister announced the extended benefit of tax-free withdrawal on NPS (National Pension System) to non-employee subscribers. At present, non-employee subscribers are not allowed to enjoy this exemption.  The new budget proposes to extend the benefit of tax-free withdrawal from NPS.

  1. Reintroduction of standard deduction

W.e.f financial year 2006-07, standard deduction (available only for salaried people) got abolished. Now the government has again introduced standard deduction and provided exemption relating to transport allowance and medical expenses. This is surely going to benefit more than 2.5 crore salaried employees.  Due to the introduction of standard deduction by the government, the salaried class of India is going to enjoy a flat deduction of Rs 40,000 from the income they pay as tax.