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WHY A COMPANY SECRETARY IS NEEDED IN YOUR COMPANY?

A Company Secretary is a senior position in any company. Although the name seems clerical, the actual job is of a CS who is commonly responsible for compliances with rules and regulations. A CS keeps the company and its members in check and aware of their legal position. To understand why a CS is so important, we first need to see some of the functions of a CS in the company.

The Company Secretary 1. Acts as an advisor to the top management and board of directors for formulating plans and policies; 2. Deals with almost all departments in a firm, from share allotments to various report formulations. His/her presence in the firm ensures that the there is a structured operation that the company follows; 3. Acts as an agent of the company who drafts corporate documents and agreements and has the authority to represent the firm in various contractual relations and agreements; 4. Schedules board meetings and drafts documentation: 5.Maintains Company Records and records of legal works 6. Files various returns and forms etc. From the above brief description, it is evident that a CS has many crucial functions in any company and having a Company Secretary is quite vital as the owners or the top management cannot run all the errands. If you are seeking for hiring a CS for your firm, then consider us because we provide the best company secretarial services in the industry.

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BANK RECONCILIATION – AN ABSOLUTE NECESSITY FOR ACCURATE FINANCIAL STATEMENTS

The term bank reconciliation might be known to you if you are involved in accounting or knowledgeable about the matter. BRS is prepared on a periodical basis to check bank related transactions are recorded properly in cash book’s bank column and by the bank in their books or not. While doing the bank account reconciliation process, one must scan the bank statement and check if the account of your company or personal accounts has the same data. UPI transactions tend to be forgotten and are not displayed in most people’s accounts which creates a difference with the bank statement. Frequent errors like this should be noted and solved beforehand.

It is easier to figure out about mismatches and glitches in accounting if bank account reconciliation is done. This makes sure that everything is transparent and clear contributing to an accurate financial statement.

The top 5 needs and importance of the bank reconciliation statement are summarized below in points.

1. Ensure accuracy of cash and entries:

To be certain about the amount of cash reported on the company’s balance sheet is the correct. The additions and deductions on the bank statement are reconciled with the items that are entered in the company’s general ledger cash account. It’s easy to forget to enter an expense or a payment when you’re in a rush, so cross-checking against the account statement can be a good safety net for your own books.

2. Detect errors or omissions:

Any omission or error in the company’s general ledger cash account also means that other general ledger account will have a corresponding omission or error. These mistakes include errors such as addition and subtraction, missed payments and double payments. The bank reconciliation could prevent this type of company from issuing an incorrect balance sheet and an incorrect income statement.

3. Improve internal control over the company’s cash:

Internal control over the company’s cash can be improved If bank reconciliation is done by someone other than the employees handling or recording receipts and payments. You can also reduce the dishonest acts (involves company’s cash) of employees.

4. Tracking Receivables:

Payments due for one month might not appear on your bank statement until the next month, if you receive the payments near the end of the month. BRS helps you to track the individual invoice till the payment is received against it. Thus, at any point, you can easily track the bills pending instead of just knowing the overall outstanding of a customer.

5. Catch fraud and cash manipulators:

It is suggested to have an independent party perform your reconciliations to prevent fraudulent in Future. Bank reconciliations statement also helps you in catching employees from stealing your money.

Conclusion

If the bank reconciliation process has been done successfully, the financial statement will automatically be more accurate.

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SAVE YOUR POCKET BY FILING TAXES ON TIME!

Filing taxes is something that no one likes to do especially, if you owe a lot of money in the form of taxes. This can lead to procrastinating the whole process of filing taxes. But this is not at all advisable, as this can lead to more problems and confusion. Firstly, it is essential to understand filing taxes and paying them are two different things and the procedures are different for each of them. This article will throw some light on why it is essential to file your taxes before the due date. 1. Avoid the penalty prices: Keep in mind that there are heavy penalties you will have to pay if you are late in filing taxes. This grows over the years if you are irregular in submitting your taxes.

2. Avoid the last-minute rush: Planning and organizing all your records including receipts, tax slips, notice of assessment etc. beforehand will help in carrying out the process of tax filing smoothly. This will ensure that you have succeeded in including everything required and nothing has been overlooked.

3. Keep scammers away: Tax identity theft is a big problem. Tax refund theft generally starts by accessing someone’s personal information, then filing a fake tax return under the person’s name to pocket the refund. Keep criminals’ grubby hands off from your refund by filing your tax return as soon as you are ready with your forms and other paperwork.

4. Consult a professional before due date to avoid miscalculations: If you are someone whose life revolves around accounts, money and transactions, it is wise to consult an expert in the taxes department to help you sort out your documents and the whole process. It might help in saving money and in avoiding miscalculations.

5. Avoid tax extension: Filing your tax return early may help eliminate the need to file an extension. Some people who wait until the last minute to file their returns need time to look for additional deductions or gather receipts. It will be even worse, if you file an extension but don’t pay what you owe, the department will charge you interest and penalties on the outstanding tax debt until it is paid fully. Preparing your tax return early in the year helps you avoid this situation.

Conclusion The above reasons state why it is wise to file your taxes on time. If you could not file taxes on time due to lack of prior knowledge and slight ignorance towards your taxes and accounts, keep in mind to plan for the next year after doing a thorough research on the whole process of filing and paying taxes or seeking an expert’s help. Note the changes are made each year: Government can revise its tax policies and terms which one should keep in mind and follow while filing taxes. This should be thoroughly investigated before filing your taxes or the probability of making mistakes will be high.

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Boston Financial, A One stop solution for your accounting and financial reporting needs Outsourced Accounting solutions for your business needs

For more information visit our site: https://bostonfagroup.com/

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OUTSOURCE YOUR ACCOUNTING TO PREVENT FRAUDS

OUTSOURCE YOUR ACCOUNTING TO PREVENT FRAUDS

In today’s competitive business era, the number of frauds is increasing every day. Small and mid-sized companies are more prone to fraud than larger organizations because one employee executing various functions across the organization and the close relationships between junior employees & managers leads to less inspection and the results can be destructive. No accounting system should run on employee trust alone and no employee should ever have control of all three primary accounting functions of authorization, record keeping and custody of assets.

Outsourcing accounting is one of the simplest methods to prevent fraud. When companies outsource their accounting needs to an independent professional, a fresh set of eyes are reviewing all the transactions while working on your data. In this case the outsourced CFO/Accountant/Bookkeeper would automatically question the nature of these charges because they are obviously not of a business nature.

In this blog we are focusing on various types of frauds which takes place due to improper accounting services and how outsourcing helps reduce fraud:

1. Cheque Tampering Fraud- When an employee forges or alters a cheque drawn on an organization’s bank account, the crime is called cheque tampering fraud. Outsource accounting services can help in preventing this kind of fraud by dividing the job responsibilities between two employees where in one employee is responsible for making and collecting payments and other employee is responsible for reconciling the books and verifying the reported amounts are proper or not.

2. Skimming Fraud- This happens mainly where there are cash transactions in a business. The employee who handles the daily cash receipts of a business skims some cash and reports lower cash transactions or deletes the transaction.

This fraud can be prevented if you Send cash payments directly to an outsourced accounting firm or start utilizing automated clearing electronic funds transfer payments.

3. Payroll Fraud- When employee tampers with their time punching, the hours an employee has worked with access to the attendance register.

Larger the business lager the complexity of payroll function, which requires to be outsourced. Outsource your payroll to experts which will be reviewed qualified and trained resources to ensure accuracy

4. Billing Fraud- Billing fraud occurs when an employee submits personal invoices for fake goods/services to the company for payment.

An outsourcing partner can help you to prevent from this kind of frauds by matching invoices to the purchase orders also by scanning bills and linking them to the matching transactions in accounting software.

Conclusion- Let’s face it; Hiring an accountant for small business is costly instead, you can outsource your accounting services. Outsourced accounting services can help you get organized, reduce the amount of time it takes to review the financial health of your business and detect employee fraud. Outsourcing also provides an immediate relive from the accounting duties and provides peace of mind to a busy business owner.