21 essentials to manage your business smoothly

 

 

Everybody wants success in their life. How the businessmen get success in their life? Obviously through their business right? Here, I have come up with the essential ideas to manage your business once you have set up your entity.

 

Every entrepreneur thinks about setting up the business and growth of business through new strategies, mission, vision, marketing ideas, etc: But...Interestingly everybody normally overlook the documentation part, if someone think about to be a perfect, laziness will overlap their discipline. 

 

One more crazy thing is that no proper training is provided to the subordinates regarding the documentation part. 

 

Being an accountant, tax consultant, I have been experiencing this dilemma. One has to search all files, even full office for a small piece of paper. Think about how much productive time will be throw away from our hand. Just imagine what would be the mental status of the person who needs that piece of paper to complete his/her work. 

 

My intention is not to show the negative side of the system. The theme of this writing is trying to bring discipline in the documentation part. You will find the simple and essential things to do for your business and keep in mind that these are the Hard Core rules that one must follow. 

 

So, why to wait...? Scroll down to find out the essential things: 

 

Have a hard copy of Sale and Purchase Invoice along with dispatch proofs (LR) and delivery challans. 

1)   Sales Invoices should be serially numbered and date wise. 

 

2)   Sales Invoice should contain as per law Invoice No., Date, Party's Name and Complete Address, mentioning of TAX INVOICE wordings, Your GST Number as well as Customers' GST Number, Your State Code, Purchase Order No. & Date, Delivery Information, Declaration and Conditions and finally Signature of proprietor or signing authority.  

 

3)   Issue the Debit Notes in case of Purchase Return/ Credit Notes in case of Sales return (whatever the case may be). You can also issue these in case of rate difference, post discount also and wherever necessary. 

 

4)   Keep the separate file for 

Ø  Sales Invoices with delivery challans, dispatch proofs (LR) and E-way bills.

Ø  Purchase Invoices with delivery challans, dispatch proofs (LR) and E-way bills.

Ø  Expenses bills, whether cash memo or Invoices. Do not mix these with your regular material purchases. 

Ø  Purchase Orders

Ø  Export / Import Documents (Do not mix both export & Import documents, maintain separate file for each).

Ø  Bank Statements.

Ø  Taxes paid challans and Returns (you may even maintain separate files for each taxes prevailed).

Ø  Income Tax and Audit Papers (Do not mix up with other taxes).

Ø  Investment/s documents.

Ø  Loan related documents

Ø  ID proofs, Address proofs, Company registration documents, any other documents which is relate to registrations and necessary.

Ø  Any other file/s such as employees' papers, labour law relevant for business.  

 

5)   Develop a habit of making vouchers while making payments whether by cash or other than cash mode of payment. 

 

6)   If you are making payment in cash Rs. 5,000 or above at a time, attach Re. 1 Revenue Stamp and take a signature from the payee (who receives the payment). 

 

7)   Please do not pay and make a cash payment voucher for more than Rs. 10,000/- per person per day. Because single cash payment of Rs. 10,000/- and above per person in a day is not allowable as expense in Income Tax (Rule 6DD). 

 

8)   Take due care to have documentary proof(s) of your payments. 

 

9)   Have a sufficient Cash Balance in the books through regular cash withdrawal from the bank (every 15 days or once in a month or whatever comfortable). 

 

10)        Keep monthly bank statements of current account along with cheque books and slip books mentioning name of the party and purpose of payment (Paid & Recd). 

 

11)        Passbook(s) should be updated regularly (In a reasonable time interval). 

 

12)        Keep a Bank Loan EMI Schedule (Principal + Interest) at the time of finalization of Accounts or take a statement for the Financial Year around end of April. 

 

13)        It is a good practice to mention the payment details on the Invoices. Receipt details on Sales Invoices and Payment details on Purchase / Expenses/ Utility Bills. (Amount, Date & Cheque No., Online transfer details and / or mention CASH if payment made or received in cash or attach a sheet which contains bill details. 

 

14)        Keep on track of investment details such as shares, Mutual Funds or any other investments by way of getting periodic statements either a hard copy or a soft copy. 

 

15)        Update with latest happenings and changes in laws. Do not forget to timely renewal of your licences as required. Make the list such licences which require renewals. You should be aware of the various tax payment and filing due dates even though your tax consultant/CA will remind you well before the time. 

 

16)         Please take prior advice / suggestions from CA / Tax Consultant / Accountant or any professional before making any changes in business or major investments or any other matters related to business. This will help to grow your business without hurdles as well as to gain more benefit from your growing business. 

 

17)         Take ledgers of regular parties and large payment (paid or recd) on half yearly basis and also take final copy of ledger before finalization of Accounts. Ideal time is on before 30th June of every year. 

 

18)        Important: Please do not hide any unaccounted investments, deposits, bank accounts. Because it may cause to pay heavy amount of penalty if found by the Govt. 

 

19)        If you receive any notices from any Government Departments immediately contact and handover or inform to CA / Tax Consultant / Accountant. So, Keep in touch with CA / Tax Consultant / Accountant regularly. 

 

20)        Make the salary, payment to suppliers, taxes, renewal fees, etc; well in time. It will build a strong relationship between you and your employees, suppliers. Also develop pay for work discipline. Every time-everything will not be free even Air to breath. 

 

 

21)        Keep scanned copies or soft copy of all ID proofs, Registration Certificates in a single folder. It will help in a great extent. 

 

 

Conclusion: Sounds good? Just implement these simple, essential things in your business. You will get more productive time to expand your business. Once everything in order, where is the place for tension? Accept the things as it is. Respect to all. Be good...Do Good👍. 

 

 

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