gapeseedsocial-blog - Tumblr blog

[gapeseedsocial-blog]

7 Big Accounting & Bookkeeping Barriers to Growth for Start-ups

Startups tend to make mistakes while launching a brand. Bookkeeping & Accounting are never on the mind while launching, as they are always kept aside for a later date. A date which arrives when we find lacunae in compliance with the tax rules as set by the assigned departments.

The excitement, self goals, peer pressure and the expectations from our idea are such that, we all make mistakes! Some might be minor but some can be catastrophic which could result in blunders. Setting up your own business is not an easy job. There are number of things you need to sort out.

Bookkeeping often lags and ends up in your to-do list in most cases and is left behind. People think there are more important issues to be addressed to, which is probably the first mistake that start-ups do. Following are the bookkeeping and accounting mistakes that a start-up should avoid:

1. Not keeping records: One of the most common accounting mistakes that start-ups do is not keeping track of their transactions which results in piling up backdated accounts and data and then there comes a moment when you never get the time to catch up with those. Bookkeeping really is one of those things where you should do your bit every day, this way you will always keep your accounts under control.

2. Not using software: You must use an electronic bookkeeping system these are much convenient to keep your records. You could also use just excel sheets to maintain records if you don’t want to pay for a specific accounting software. At least this way it keeps adding up the values and gives the total sum at the end of your set time period and it becomes easy for you to use this data while filing your taxes.

3. Not having a separate Bank Account: Keep your business and personal finances separate, else you would just complicate things more as you will have to sort it at the time of filing your taxes, else hire an accountant for doing the same. It’s better if you have separate accounts in the beginning itself.

4. Bank Statements not in order: By just keeping your bank statements in order you can save a lot of time at the end of the year or whenever you need to refer it. Probably you will hire an accountant to keep track of your records and you would be working along to keep him/her updated whereas if you keep your bank statements in an order you will be able to execute the job more conveniently.

5. No Filing system for Purchases: There is a simple way of organising your purchase invoices. You could do it in different ways. Have two files – one for paid invoices, the other for unpaid invoices. When you pay, write the date and method of payment for the particular invoice. Once paid, move it to the paid file. Keep both files ordered alphabetically by supplier name.

6. Lagging in being organised when it comes to Accounts: You need to keep yourself updated with the cash flows of the business. For doing that, you should keep your books updated accurately and timely in a manner that you are able to judge the steps to overcome any disaster.

7. Failing in Keeping a Purchase Record: It could result badly if you don’t keep your books updated with the purchases or petty cash, contingency, miscellaneous etc. You could risk failing to account for certain expense. It could lead to paying more taxes, eventually even the expenses could mount up. You could avoid this by keeping a close record of every penny you spend in your business.

At Gapeseed consulting we provide full range of bookkeeping services and maintaining your accounting records timely. Drop us a line here or feel free to send in an email to info@gapeseedconsulting.com if you want to know more about our services.

[gapeseedsocial-blog]

Expat Services

An expatriate(expat) is a person temporarily or permanently residing, as an immigrant, in a country other than that of their citizenship. An expat in India finds it difficult to visit, travel or even abide by the procedures and laws defined for exapts in India. For this reason we at Gapeseed Consulting provide expat services which make the expat feel comfortable and homely from day one. Such services are designed to facilitate expats as individuals or those with families to settle and establish themselves in a whole new environment. We aim to provide expats a combination of our experience and expertise by offering services ranging from visa facilitation, travel relocation to expatriate taxation.

Discussed below are few of the services that Expats require mostly:

FRRO Registration:

The one place every long term outsider has to visit is the FRRO within 14days of their stay, probably it’s too early to ask an outsider even before they settle down but they must do it. The FRRO stands for Foreigners Regional Registration Office which handles all the services required by foreigners living in India. The FRRO can be a place of lot of difficulties but at the same time it can be very pleasant if you follow certain rules like showing up early, carrying extra copies which are signed and attested and most important of all being friendly and patient.

And in case, you feel the procedures, systems or even language can be a barrier, allow our account managers to handle the FRRO Registration process for you.

Preparation & Filling of Tax Challans & Returns for Expatriate Taxation in India:

As a foreign expat residing and working in India, you have a legal obligation to file Indian tax returns each year on your income as under Section 9(1)(ii) of the Income Tax Act if the income earned for services rendered in India. This makes it pretty clear that whatever is earned in India is taxable irrespective of the residential status of the expatriate employee and also they have to pay the TDS regardless of the place where the salary is received.

Obtaining DIN, PAN & TAN for Expats in India:

Applying for DIN, PAN and TAN for an Expatriate/ Foreign Firm are taken care entirely by Gapeseed Consultants. All the forms and formalities are fulfilled by our team.  Any person intending to apply for DIN shall have to make an application in eForm DIR-3. Form to make changes to any particulars uploaded in DIR – 3 Form.

For PAN Form 49AA is required to be submitted for Individuals not being a citizen of India, LLP registered outside India, Company, Firm, Association of persons (Trusts), body of individuals or local authority or artificial juridical person formed or any other entity (by whatever name called) registered outside India.

For the requirement of the TAN Form 49B is submitted online with the Income Tax authorities of India. Documents are required to be submitted after the confirmation is received.

So if you are planning to Startup, Import business compliance, a retail brand, a manufacturing setup or even an NGO in India we can help you in Setting up the Business through documentation, compliances and legal consultation.  To understand our services better, feel free to write to us and send in a mail to, info@gapeseedconsulting.com or drop us a line here.

[gapeseedsocial-blog]

Basics of Expatriate Taxation

As a foreign expatriate residing and working in India, you have a legal obligation to file Indian tax returns each year on your income as under Section 9(1)(ii) of the Income Tax Act if the income earned for services rendered in India. This makes it pretty clear that whatever is earned in India is taxable irrespective of the residential status of the expatriate employee and also they have to pay the TDS regardless of the place where the salary is received.  

When the salary of an expat is to be paid in foreign currency, the amount of the tax deducted is then calculated after converting the salary payable into Indian currency at the rate as adopted by State Bank of India on the date of deduction of tax. You have to be aware of this rule as it is applicable for determination of Income Tax in TDS, whereas while computing the salary income, the rate of conversion is applied in the transfer buying rate on the last date of the month in which salary is to be paid. To understand Expatriate Taxation you must understand Indian Tax System which is a must. You can read about it here related to Expatriate Taxation.  Certain exemptions are available to foreign nationals and non-residents, subject to some conditions as they are fulfilled. The exemptions available include the following:

 Remuneration for services rendered by a foreign national, employed by a foreign enterprise during his/her stay in India, is exempt if:

The total period of the stay in India does not exceed 90 days in a tax year.

The foreign enterprise is not engaged in any trade or business in India.

The remuneration is not changed to an entity subject to Indian income tax.

Remuneration received by or due to a non-resident foreign national for services rendered in connection with employment on a foreign ship, where the total period of the stay in India does not exceed an aggregate period of 90 days in a ta year, is exempt from tax.

 Remuneration received by a foreign national working as an employee of a foreign government is exempt from tax, if the remuneration is received in connection with training activity in an undertaking, office, or company owned by the government.

Remuneration from any cooperative technical assistance program in accordance with an agreement entered into the central government with a foreign government is exempt from tax, provided:

The remuneration is received from the foreign government.

 The employee is required to pay income tax to another foreign government on income arising outside India.

Many worry about double Expatriate Taxation i.e., paying taxes to two different countries on the same income. A foreign taxpayer working in India may be able to reduce taxable income in their country of primary residence (and double taxation) under a double taxation avoidance agreement.  

For U.S. citizens this is done using Form 1116, Foreign Tax Credit.

In India, an individual’s income is taxed at graduated rates, depending on his/her duration of stay in India and income level. Non-employment income is taxed at a variable rate according to income type.

At Gapeseed Consulting we outline the rates and calculation methods for both income sources, and summarize common deductions and inclusions in income for expatriates working in India. Further to this if you seek any further clarity of Expatriate Taxation, feel free to write to us on, info@gapeseedconsulting.com or drop us a line here.

[gapeseedsocial-blog]

How to keep the Bookkeeping Simple for your startup?

A Bookkeeping system is required for any small business or a startup it captures all your routines activities. With such information in record it becomes easy for you to know your business and at the end of the day the information needed for tax and regulatory compliances becomes easy.

The bookkeeping system contains three key elements that are documents, records and storage. Keep it simple you don’t have to complicate things at the beginning if you are a start up the increased usability is required when you have more business partners, lenders or shareholders.

To begin with let’s talk about the documentation part. All your business activity is required to be in a recorded system and the best way to do it is account for every expense you make like the office supplies, the postage purchases, meals, entertainment. The easiest way to record all these activities is either by using an excel sheet or a notebook. Keep a record of all the bills and keep them at a single place.

Once you have the documentation part you must start recording it in a place where you can refer all your expenditures. You could record documents at leaston monthly bases. There are various software you could use like QuickBooks, Peachtree and MYOB. It makes it easy to record your transactions by setting up such record systems. The next thing you must do is total all your expenses and find out the total cash paid this comparison will give you the actual revenue and expenses and a good overview about your business performance.

The next step is to store your documents in a place. You must set aside receipts of expenses that are comparatively huge like the lone term items, such as real estate, equipment, vehicles, loans, lease. Make separate files for such records. Label all you documents carefully and arrange them by monthly or by topic basis on your preference how you want to use them.

Another way to keep a record of all you transaction and data is to scan all your copies and build a PDF or any other format so that you can easily sore it on a computer.

As you grow your Bookkeeping system will become more complex and you might have to change the way you keep a record of it. Stating with a well organised system will give you a pre required experience on how to manage your business transactions later. The key to success will lie in it.Doing your books after hours or at weekends maybe challenging for many Startup owners. It is the last thing you need after a busy day but it can't be avoided if you want your business to survive and prosper.To save money, of course you got to do it yourself or maybe you can get an accountant to take care of the more complicated accounts.

At Gapeseed Consultingwe have highly experienced Accountants who can take care of your Bookkeeping, tax and legal compliances. You can write to us on, info@gapeseedconsulting.com or also call us at +91-9599444630 for further correspondence.

[gapeseedsocial-blog]

Why Training and Development should be prime focus of HR

Success of any company is mostly due to the performance of its employees and hence Human Resource Strategy of the companies must evolve around three critical elements - Recruitment, Training & Development and Retention.

The continuing development of new skills and knowledge throughout life is valuable for individuals and essential for the economy. Governments across the world are realising with growing clarity that it is not sufficient to expand universities. Even highly skilled professionals need work structures which allow them to go on expanding their abilities.

Numerous researches have shown that there are right and wrong ways of developing professionals at all stages of a career. New graduates entering their first jobs, in occupations from nursing to engineering, need support to turn into full professionals, much of it social and emotional as well as being concerned with the practical use of academic knowledge. Later in their careers, individuals need a wide range of development opportunities that allow them to broaden their careers as well as deepening their knowledge. In many cases, as our work with some of the clients on inter-professional working has shown, they need to find ways of stepping beyond their profession and working with members of other groups whose vocabulary, institutions and career paths may be unfamiliar. This shows that although professionals, almost by definition, have a detailed knowledge of some specific field, they can only prosper in the modern world if they regard this knowledge as a basis on which to build, not a canonical body of wisdom that will last them for life. It also sets out detailed requirements for people who have responsibility for the professional development of others. This rare skill is one which many organisations are valuing more and more. It requires an expansive view in which people are encouraged to see work in its full context, even if the aim is to deliver an apparently modest and specific increase in competence. We at Gapeseed consulting offer specialized HR improvement interventions to assist clients in optimizing the productivity of their workforce.

Training to employees should be given on a need-based basis, which may be according to the need of the individual and / or the need of the organisation. Employee Training Need Assessment should also be done at the time of appraisal. Companies must have a system of in-house training where internal trainers impart training to the employees at regular intervals. For external trainings (if and as required), employees should be sent for outside programmes or external faculties should be invited to conduct training programmes at the Company premises. Both types of training programmes are useful in development of employees.  

Staff Development is more about the individual – making him or her more efficient at a job or capable of facing different responsibilities and challenges. Development concentrates on the broader skills that are applicable to a wider variety of situations, such as thinking creatively, decision-making and managing people. In short, training is typically linked to a particular subject matter and is applicable to that subject only, while development is based on growing broader skills which can be used in many situations.

  ·         Necessary to enhance the institution’s skills and knowledge base

  Important to identify needs at     ALL levels

All categories of staff should     be involved

Programmes require regular     evaluation – problems of relevance

Different forms of staff development:

•          Induction programmes

•          Programmes for new academic staff (often linked with probation)

•          Skills programmes – particular activities, new technology, updating

•          Management development programmes – leadership and management

To sum it all, Employee Training and development play an important role in the effectiveness of organisations and to the experiences of people in work. Staff Training has implications for productivity, health and safety at work and personal development. All organisations employing people need to train and develop their staff. Most organisations are cognisant of this requirement and invest effort and other resources in training and development. Such investment can take the form of employing specialist training and development staff and paying salaries to staff undergoing training and development. Investment in training and development entails obtaining and maintaining space and equipment. It also means that operational personnel, employed in the organisation’s main business functions, such as production, maintenance, sales, marketing and management support, must also direct their attention and effort from time to time towards supporting training development and delivery. This means they are required to give less attention to activities that are obviously more productive in terms of the organisation’s main business. However, investment in training and development is generally regarded as good management practice to maintain appropriate expertise now and in the future.