Professional Updates

Creating a Strong Foundation: Importance of an Audit Engagement Letter An effective audit engagement letter is a critical component of a successful audit. It establishes the terms of the audit, outlines the responsibilities of both the auditor and client, and serves as a reference point throughout the audit process. In this article we will discuss importance, contents and other aspects of an audit engagement letter. Before proceed further you must be aware of Standard on Auditing issued by the ICAI   SA 210* Agreeing the Terms of Audit Engagements.  Which is soul of this article, but we will discuss only about Engagement letter.  What is an audit engagement letter? An audit engagement letter is a document that outlines the scope and objectives of an audit engagement and serves as a contract (along with your mandate) between the auditor and the client, which also defines services to be provided by the auditor, timeline, cost involved, limitations if any. Why is an audit engagement lette

Fixed assets verification/audit Brief on audit/verification of fixed assets: Fixed assets are a crucial component of any business, providing the necessary resources for operations and growth. Regular fixed assets verification and audit is important to ensure that they are properly accounted for and protected. Fixed assets verification is the process of physically inspecting and confirming the existence and condition of a company's fixed assets. Verification includes checking location, serial numbers, and condition of each asset, as well as ensuring they are properly recorded in accounting records. The purpose of fixed assets verification is to ensure that the assets are still in use and their values are accurately reflected in financial statements. Fixed assets audit is a more in-depth review of a company's fixed assets. Audit includes physically inspecting and verifying assets, evaluating the company's policies and procedures for managing and protecting them, and evaluatin

What is a producer company? A producer company is a type of company recognized under the Companies Act, 2013 in India, that is formed by a group of producers with the aim of collectively carrying out one or more of the specified activities such as production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the members or import of goods or services for their benefit. Producer companies are formed to promote the welfare , to empower farmers and other primary producers by providing them with access to resources, technology, and markets, and by enabling them to collectively negotiate better prices for their products.  A Producer Company can also engage in activities such as processing, packaging, grading, handling, and marketing of the products produced by its members. Basic requirements for forming a producer company: I am not going to discuss other general documentation related with formation of a producer company. As other general

Form INC-20A- Declaration for commencement of business: Important changes  Form INC 20A is a form that is required to be filed with the Registrar of Companies (RoC) under the Companies Act, 2013 in India. It is a declaration of commencement of business by a company. A company is required to file form INC 20A within 180 days of its incorporation, as a proof of commencement of business.  The form must be signed by a director of the company and be accompanied by a declaration from a practicing professional certifying that the company has actually started its business operations. MCA vide notification no G.S.R. 42(E) dated 19th January 2023 revised form INC-20A.  Now the revised INC-20A form requires the company to disclose the following additional details:  -Registered office along with  Longitude & Latitude -Details of subscriber payment for value of shares. i.e. bank account, IFSC etc. -Photograph of Registered Office showing external building and inside office also showing therein

Notice of address at which books of account are to be maintained: Form AOC-5 As per the provision of the Company Act 2013, every company is required to maintain books of account and any other documents at the registered office of the company. However,  these documents can be kept at places other than registered office if decided by the board. In such situation, the form AOC-5 is used to notify the Registrar of Companies (ROC) of the address (other than register office) where the company's books of account, and other relevant documents, will be kept.  Earlier only two attachments were required i.e. board resolution and optional attachment for AOC-5. Now, MCA vide notification no G.S.R. 40(E) dated 20th January 2023 substituted form AOC-5. As per revised form AOC-5 following new additional attachments are required:  Photograph of registered office showing external building and second will be inside office also showing therein at least one director/ KMP who has affixed his/her digi

Top ten business opportunities in accounts & taxation business Tax consultancy and compliance services: With the Indian government introducing new tax laws and regulations, there is a high demand for tax consultancy services, compliance and filing of returns. the field of labour law is one of the emerging filed and can be good option as consultant. Auditing and assurance services : Businesses are required to go through regular audits and assurance checks to ensure compliance with laws and regulations. This creates a demand for professional auditing and assurance services. Bookkeeping and accounting services: Small and medium-sized businesses often require assistance with maintaining their financial records, creating and managing budgets, and preparing financial statements. Payroll management services : As the Indian economy continues to grow, businesses are looking to outsource their payroll management to save time and resources. Financial planning and investment advisory service

Audit like a Pro with Excel and Tally Excel and Tally are both powerful tools that can be used for audit purposes. While Tally is primarily used for accounting and financial management, Excel is a versatile tool that can be used for data analysis and visualization. By using both Tally and Excel together, you can combine the strengths of each tool to make the audit process more efficient and effective. One way that Excel can be useful along with Tally for audit is by using Excel to analyze and visualize data exported from Tally. Tally allows you to export financial data , such as financial statements, ledgers, and trial balances, in a variety of formats, including Excel. Once the data is exported to Excel, you can use Excel's powerful data analysis and visualization tools to identify patterns and trends in the data that might not be immediately obvious when looking at the raw data in Tally. This can help you to identify any discrepancies or errors in the data and report them for cor

Maharashtra minimum wages January 2023 The Minimum Wages Act is applicable to any establishments / industries / factories / employment either registered under the shops & establishment Act or the Factories Act, irrespective to the strength of employment . That is even if anybody employs an one employee he has to pay Minimum Wage .  The term Minimum Wage includes the Basic Wage plus Special allowance, as prescribed & published by Labour department, time to time for a given schedule of employment. Brief summary of the Minimum Wages Act in Maharashtra for easy understanding: Maharashtra minimum wages are set by the state government and can vary depending on the type of work and the skill level required. The minimum wages in Maharashtra are reviewed and revised periodically by the state government. The wages are determined by the labor department and relevant authorities. Employers in Maharashtra are legally required to pay their employees at least the state-mandated minimum wage.

Relaxation in levy of additional fees Ministry of corporate affairs is in the process of introducing certain company e-forms (45forms) in MCA21 version 3.0 and therefore these form will not be available for filing w.e.f. 07.01.2023 to 22.01.2023. Therefore keeping in view above fact, vide general circular 01/2023 dated 09/01/2023 MCA has given additional time of fifteen days (15 days)* for filing these 45 e-forms in case due date of such e forms fall between 07.01.2023 to 22.01.2023. * Update as on 21/02/2023 MCA vide general circular no 04/2023 dated 21/02/2023 further provided additional time up to 31/03/2023 for filing these 45 forms in case such forms were due for filing between 07.01.2023 to 22.01.2023. Attached herewith MCA General Circular No 01/2023 dated 09/01/2023

Creative marketing strategies for promoting Accounting and Tax business Marketing an accounting and tax business can be challenging, but there are several strategies that can help you to reach your target market and attract new clients. Below are few tips that can be useful  1 . Create a referral program: Encourage your existing clients to refer their friends, family and colleagues to your accounting and tax business. You can offer them a discount or a gift card as a token of appreciation for each referral that converts into a client. 2 .Host a webinar or a workshop: Share your knowledge and expertise on the latest tax laws and regulations, and offer practical tips on how to save money on taxes. This will help you to position yourself as an authority in the industry and generate new leads. 3 .Leverage Email Marketing: Send out regular newsletters or email campaigns to your current and potential clients, keeping them informed about the latest tax changes, new services you offer and othe

Revision in the minimum basic rates of minimum wages  Government of Maharashtra has revised the minimum rates of wages payable to the employees employed in the following scheduled employment, viz., Employment in Engineering Industry. w.e.f. 21st November 2022 Employment in any industry Manufacturing Drugs and Pharmaceuticals. w.e.f. 21 November 2022 Employment in establishments maintained in connection with legal profession by Advocates or Attorneys of High Court of Judicature at Bombay or by any association, society or other body formed by such Advocate or Attorney. w.e.f. 23 November 2022 Revised wages for aforesaid scheduled employment is as follows: Attached herewith relevant notification for ease reference. Click here