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The books of account need to be maintained so that it reflects correct financial position of the company and its suppliers and customers, regular reconciliation of bank statement and the ledger of bank maintained by the organisation must be reconciled so that both is synchronised. The difference between the bank balance and the balance in bank ledger maintained by accountant is obvious as the accountant records debit the moment it issues a cheque whereas the bank reduces the balance only when the cheque is presented and subsequently it is paid by the banker to the presenter. These days accountants play a very significant role in managing the business

Legal Provisions

Section 138 of the Companies Act, 2013 requires that every company shall prepare and maintain its books of account and other relevant books and papers and financial statements for every financial year, which give a true and fair view of the state of the affair of the company. A company is required to preserve the books and papers including vouchers which is relevant to any entry in such books of account for a period of 8 years.

Book to be Maintained at Registered Office

The books of account is required to be maintained at the registered office of the company, however, the Board of Directors may take a decision to keep and maintained the books of account at any other place in India. In such situation, the company must file a notice to the registrar of companies in Form No. AOC 5 intimating maintenance of books at a place other than the registered office.

Persons Responsible for Maintenance of Account of a Company:

Though the primary responsibility of maintaining the registered office is on the Board of Director, however, in case there is any non-compliance of Section 128 of the Companies Act then the Managing Director, the whole time director incharge of finance, the Chief Financial Officer or any other person of a company charged by the Board with the duty of complying with the provisions of the section.

Punishment for non-compliance:

For any non-compliance of Section 128, there is an imprisonment for a term which may extent to one year or with fine which shall not be less than Rs. 50,000/-, but which may extent to Rs.5 lakh or with both

book-keeping

Maintenance of Books

The most important role which an account must play is to ensure that the books of accounts are properly maintained and updated

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Receivable & Payable

The payables must be paid within due date to avoid interest and loss of reputation; the receivable must be taken care of by way of reminders.

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Payroll & Labour Law

Employee’s salary need to be paid within time after statutory deductions like Professional Tax, TDS, PF and ESIC contribution

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TDS Compliance

While making payments to vendors, employees, contactors, rent, professional payments etc TDS must be deducted at applicable rates.

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Sales Tax Compliance

Correct computation / working of vat payable after taking input tax in credit and filing of timely return is important responsibility of accountant.

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Service Tax Compliance

Every month the service tax need to be paid after taking proper deduction of available service tax credit. The return must be filed within due date.