Perfect accounting is achieved by taking appropriate action as follows:
- Entering data in the accounting system on time and ensuring that complete data is captured.
- Making entries under appropriate heads of account as per accounting standards and guidelines.
- Tax obligations under various tax laws are acted upon and accordingly entered into account books.
Providing services to clients may be restricted to (b) and (c); or a contract may be taken for performing all the jobs, (a), (b), and (c), in which case the client would be required to make available the full database of its commercial activity to the service provider.
- Audit of accounts is an annual exercise. For accomplishing this, coordination between the person of the client, the dedicated person of the service provider, and the auditors is essential during the period of audit. Queries raised by auditors are to be resolved among them after examining the facts of the transactions and the applicability of accounting standards.
- After audit – final accounts are prepared and required to be uploaded to the company law sites as prescribed.