Bookkeeping and Accounting

Overview

Bookkeeping is the day-to-day recording of every rupee that comes into or leaves a business: sales, purchases, expenses, receipts, payments, loans and tax. Accounting builds on those records to produce ledgers, a trial balance, a profit and loss account and a balance sheet. Done monthly, it gives you a current picture of the business and removes the year-end scramble when the tax return, GST reconciliation or audit falls due.

Zenith assigns a qualified accountant to maintain your books on a recurring basis, working from the documents you share online. The books can be kept in the software you already use or in a cloud accounting tool agreed at the start.

Who needs it

• Startups and new companies that need clean records from the first transaction, including for investor or lender review.
• Small and medium businesses with GST registration, a handful of bank accounts and no in-house accountant.
• Freelancers, consultants and proprietors whose income and expenses are mixed with personal transactions and need separating.
• E-commerce sellers with marketplace settlements, returns and commission deductions to reconcile.
• Companies and LLPs that must prepare financial statements every year and want that work to start from reliable monthly books.

Single-entry records can be enough for a very small proprietorship. Companies, LLPs and any business above the audit or GST thresholds should keep double-entry books.

What Zenith does

Zenith listens first to understand your business, volume of transactions and software, then confirms the scope and a tailored quotation. A relationship manager is assigned and you receive a checklist of what to share each month.

• Records sales, purchases, expenses, receipts and payments in a double-entry ledger.
• Reconciles every bank, credit card and payment-gateway account against the statements.
• Reconciles sales and purchase registers with GST returns and the auto-populated GSTR-2B (see Eligibility and key rules).
• Tracks receivables, payables and, where relevant, stock and fixed assets.
• Prepares a monthly or quarterly profit and loss account, balance sheet and a short note on what changed.
• Keeps the books audit-ready: supporting vouchers linked to entries, queries logged and answered.
• Hands over the ledgers and reports with an explanation, and flags items that need your decision.

Filing of returns (GST, income tax, TDS) is a separate engagement unless included in the quotation. Statutory audit and tax audit, where applicable, are carried out only by appropriately authorised, independent professionals.

Eligibility and key rules

• Every company and LLP must keep proper books of account; the Companies Act requires them to be preserved for a minimum number of years, so do not discard vouchers early.
• GST-registered businesses must match their books to GSTR-1, GSTR-3B and the supplier data in GSTR-2B. Input tax credit needs a valid invoice, receipt of the goods or services, the supplier having paid the tax, and the supplier's return being filed.
• Input tax credit for a financial year has to be claimed before the GSTR-3B for September of the following year is filed (due on 20 October), so mismatches need to be found well before then.
• Proprietors and professionals who exceed the turnover limits in the Income-tax Act need books that support a tax audit. Presumptive taxation reduces what must be kept, but bank and sales records still matter.
• Cash payments, personal expenses and unrecorded loans are the usual sources of disallowances and notices. Zenith can only record what is documented.

Documents required

Share these in the first month, then the monthly set after that:

• Bank statements for all accounts (and credit card and payment-gateway statements) for the period.
• Sales invoices and purchase bills, expense receipts, and credit and debit notes.
• Opening balances: the last balance sheet and trial balance, or a closing list of debtors, creditors, loans and stock.
• GST registration details, GSTR-1 and GSTR-3B filed so far, and the GSTR-2B for the period.
• Payroll summary, TDS challans and loan statements where applicable.
• Fixed asset list with purchase dates and costs.
• Access (read-only where possible) to the accounting software, if you already have one.

Process and timeline

1. Scoping. Entity type, financial year, transaction volume, software and reports needed are agreed and quoted.
2. Onboarding. Opening balances are loaded, the chart of accounts is set up and the monthly document checklist is shared.
3. Monthly cycle. You upload documents, Zenith records and reconciles, and raises queries for missing vouchers or unclear entries.
4. Month-end review. Reconciliations are tied out and the management reports are shared.
5. Year-end. Books are closed, adjustments such as depreciation, accruals and provisions are passed, and the trial balance moves to financial statements and tax filing.

The first month usually takes longer because of onboarding. After that, timing depends on how quickly documents arrive and on the number of transactions.

Government fees, penalties and due dates

There is no government fee for keeping books. The consequences of poor books show up elsewhere:

Area	What to watch
GST	Returns are due monthly or quarterly; late filing attracts a fee and interest, and ITC claimed without matching supplier data can be reversed with interest.
Companies Act	The AGM is due within six months of year end (30 September for a 31 March year end), AOC-4 within 30 days of the AGM and MGT-7 within 60 days.
Income tax	Tax audit and return deadlines depend on the type of taxpayer and are confirmed per case.

Amounts and dates above reflect public sources read in October 2026 and change with notifications, so Zenith confirms the current figures in your quotation.

Common mistakes

• Mixing personal and business transactions in the same bank account.
• Recording sales and purchases only when a return is due, instead of monthly.
• Claiming input tax credit on invoices that do not appear in GSTR-2B.
• Missing vouchers for cash expenses, which are later disallowed.
• Not reconciling payment-gateway or marketplace settlements, which hides fees and refunds.
• Changing accounting software mid-year without a clean cut-off and opening balances.

FAQs