Most people think accounting is an unnecessary cost to business, while true businessmen understand that accounting is a tool that helps them understand the outcomes of their past business decisions and make even better decisions for the future. You may be running a successful business with a high turnover, but if you're not accounting for transactions at least monthly, there may be events that could adversely impact your business processes or profitability. For instance, if you've taken a loan at 15% per annum for day-to-day expenses or working capital, from a financial perspective, you need to generate income greater than 15% on the loan amount to ensure profitability. Otherwise, the decision could result in losses and increased cash outflow. If a single production cycle yields only 7% on the amount invested in working capital or production of goods, you'll need more than two cycles in a year. However, this necessitates timely payments from customers so that cash from...

Advance tax is a systematic approach to pre-pay income tax before the conclusion of the financial year. It is applicable to individuals, including those deriving income from business or share trading, if their tax liability surpasses a specified threshold. Lets have a look at key aspects pertaining to the relevance of advance tax for individuals earning from business or share trading are as follows: Threshold for Advance Tax: Individuals are obligated to remit advance tax if their aggregate tax liability for the financial year amounts to Rs. 10,000 or more. The liability encompasses income from diverse sources, including salary, business, profession, capital gains, among others. Need help ? Write to experts: info@bizzguru.in Due Dates for Advance Tax Installments: Advance tax is disbursed in installments on designated due dates during the fiscal year. The scheduled due dates for advance tax payments typically fall in June, September, December, and March. Calculation of Advance Tax: Ta...

SREI NCD default case explained Non convertible debentures (NCD) are considered one of the most safe and fixed income source by most of the investors. But I believe things are not that secured or safe, this was recently seen in case of NCD issued by SREI Group (SREI Equipment Finance Ltd. and SREI infrastructure Finance Ltd.). These were issued around year 2017/18 and most of the investors were middle income group and too the with the age group of retired people. These retired people or pensioners are dependent on the fixed income ( in form of interest ). The ratings which are considered as indicator of good debtor / issuer changed overnight, people were puzzled not to see their interest installment. And then there was news in the market that the SREI may fail to pay interest and even principal. Then people found out that promoters messed up the management of company and SREI group is facing liquidity crisis. The big players (Banks who loaned money to SREI companies) reached RBI and a ...

If you are a freelancer and scratching your head for the compliance required, this can be useful for you. Freelance in legal terms: So, as a freelancer you can operate as self (individual) or a proprietor ship firm. I recommend to go for a sole proprietorship firm and open a current business account with bank. Opening a sole proprietorship entity gives your freelance business a recognition for long term. What do I need to open a sole proprietorship firm ? You should have a PAN (income tax purpose) in your self name. MSME registration certificate Business registration in state you are operating. And GST registration in case you are planning to go beyond the eligible limit for GST reg. Any 2 documents above enable you to open bank current account. Need above services, contact us. Do I need to open a sole proprietorship firm for platform like 'Upwork', 'Freelancer' etc ? No, you do not need to register a proprietorship for these platforms on date of writing this article. ...

What is Personal Accounting or Bookkeeping? Similar to how businesses rely on accounting for expense tracking, cash flow management, and profit & loss analysis, individuals must also monitor their monthly expenditures and plan for future cash flow. Personal accounting empowers individuals, particularly those with a fixed income, to oversee their earnings, expenses, and strategize for a financially secure and sustainable life with minimal debt. Why is personal accounting necessary? To manage expenses, debts, loans, and cash flow, individuals must either handle it themselves or enlist the expertise of an accountant who can provide monthly feedback. Many individuals earning above-average salaries in their industry still face financial challenges due to poor expense and debt management. Without guidance, they are prone to making incorrect financial decisions. Other advantages of personal accounting: Estimating net worth Creating accounting records for future needs Utilizing it during u...

Writer: Bizzport Consultants Enhance Your Tax Savings: A Guide for Salaried Individuals in India Discover smart ways to optimize your tax savings, avoiding the common pitfall of procrastination. In India, the financial year runs from April 1 to March 31, making March 31 the crucial deadline for actions like investments. Many individuals only take tax matters seriously when seeking refunds or facing additional tax payments. However, by July, when tax return filing occurs, March is long gone, leaving individuals with limited options and often resorting to dubious practices. In such scenarios, some tax preparers exploit the urgency, charging a percentage fee, typically 15% of the tax saved or refunded. This approach involves high risks, exposing clients to legal repercussions. For those with no tax expertise but substantial earnings, it's vital to question how a tax preparer can secure more refunds or reduce tax liability within the same legal framework applicable to everyone. To simp...