Bookkeeping and Accounting Services

Bookkeeping is the day-to-day recording of a business's transactions – sales, purchases, receipts, payments and expenses – in a proper set of books, and accounting is the process of classifying, summarising and reporting those records as financial statements. IMAK Advisory, an ICAI-registered CA firm in Bengaluru, provides outsourced bookkeeping and accounting for proprietors, firms, LLPs, startups and companies across India, using your accounting software, with monthly reconciliations and reports reviewed by chartered accountants.

Most tax notices, audit delays and loan rejections start with the books: entries made months late, bank statements never reconciled, GST input credit that does not match suppliers' filings, or software where entries can be changed without a trace. This page explains what our bookkeeping covers, the accounting meaning and accounting principles behind it, the 3 golden rules of accounting, how general entry accounting works, what is financial accounting, the GAAP full form in accounting, the valuation meaning in accounting, the ROC full form in accounting, and how bookkeeping connects with CFO accounting services.

• Recording sales, purchases, expenses, receipts and payments
• Bank, cash, credit card and payment gateway reconciliations
• GST and TDS reconciliation with portal data
• Receivables and payables tracking with ageing
• Payroll entries, fixed asset register and depreciation
• Monthly profit and loss, balance sheet and management reports

The accounting meaning, in simple terms, is the process of recording, classifying, summarising and interpreting a business's financial transactions so that owners, lenders, investors and the government can understand its performance and position. Bookkeeping is the first part of that process – recording transactions accurately and on time. Accounting goes further: deciding how transactions should be classified, making adjustments such as depreciation and accruals, preparing financial statements and explaining what they show.

Good bookkeeping makes good accounting possible. If entries are late, incomplete or wrongly classified, no amount of year-end work fully fixes them.

Our outsourced bookkeeping works on a monthly cycle with fixed deadlines, so you get the same reliable numbers every month.

1. Collect documents: sales invoices, purchase bills, expense receipts, bank and card statements, payroll data
2. Record all transactions in your accounting software with correct ledgers, GST and TDS treatment
3. Reconcile bank, cash, credit cards, payment gateways and marketplace settlements
4. Reconcile GST input credit with the supplier data on the GST portal, and output tax with returns
5. Reconcile TDS deducted and deposited with the returns and the tax department's records
6. Update receivables and payables with ageing, and flag overdue accounts
7. Record payroll, depreciation, accruals and prepaid expenses
8. Close the month and share the profit and loss, balance sheet and key reports with you

Where needed, we also prepare GST returns, TDS returns and advance tax computations from the same books, so that what is filed always matches what is recorded.

Accounting principles are the basic rules and assumptions that make financial statements reliable and comparable. In India they come from the Companies Act, the Accounting Standards and Ind AS issued under it, and the framework and guidance of the ICAI. The main accounting principles every bookkeeping process should follow are:

These accounting principles are not only theory. Tax officers, auditors and banks test the books against them, and many disputes arise from cash-basis records, missing accruals or inconsistent methods.

The GAAP full form in accounting is Generally Accepted Accounting Principles – the overall set of standards, rules and conventions used to prepare financial statements in a country. In India, "Indian GAAP" usually refers to the Accounting Standards (AS) notified under the Companies Act for companies that do not follow Ind AS, along with ICAI guidance. Ind AS are converged with International Financial Reporting Standards and apply to listed companies and other companies above specified net worth thresholds, and to their holding, subsidiary and associate companies. US GAAP is a separate framework used by US companies and some Indian subsidiaries reporting to US parents.

For most small and medium businesses, Indian GAAP under the Accounting Standards is what applies. Knowing which framework your business follows matters for revenue recognition, leases, financial instruments and disclosures.

The 3 golden rules of accounting are the traditional rules for deciding which account is debited and which is credited in each transaction. They classify accounts into personal, real and nominal accounts:

For example, when goods are bought for cash, purchases (nominal, an expense) is debited and cash (real, going out) is credited. When rent is paid by bank transfer, rent (nominal) is debited and the bank (personal) is credited because the bank is the giver. Modern software applies these rules automatically through ledger groups, but understanding the 3 golden rules of accounting helps owners read their own books and spot wrong entries.

The Modern Approach: Accounting Equation

Many professionals now explain entries using the accounting equation – assets equal liabilities plus capital – with increases in assets and expenses debited, and increases in liabilities, capital and income credited. The result is the same as the 3 golden rules; it is simply another way of reaching it.

General entry accounting – more commonly called making a journal entry – is the record of a transaction in the journal, showing the accounts debited and credited, the amounts and a short narration. Every general entry must have equal debits and credits. Entries for routine sales and purchases are usually made through vouchers in software, while a general or journal voucher is used for adjustments and non-cash items.

Adjusting entries at the month end – accruals, prepaid expenses, depreciation, provisions – are where most errors and omissions happen. A month-end close checklist makes sure they are not missed.

What is financial accounting? It is the branch of accounting that records and reports a business's transactions in financial statements – the balance sheet, profit and loss account, cash flow statement and notes – for people outside the business, such as shareholders, lenders, tax authorities and regulators. Financial accounting follows accounting standards and the law, covers a defined period, and is usually audited.

Our bookkeeping produces the records financial accounting needs, and the same data feeds monthly management reports and, where needed, cost analysis.

The valuation meaning in accounting is the process of deciding the monetary amount at which an asset or liability is recorded in the books and shown in the financial statements. It is different from valuing a whole business for a sale or investment. A practical valuation accounting definition is: the measurement basis used to put a number on each item – what it cost, what it would cost to replace, what it could be sold for, or the present value of the cash it will bring.

In everyday bookkeeping, valuation questions arise most often for inventory (lower of cost and net realisable value), receivables (provision for doubtful debts), fixed assets (depreciation and impairment) and investments. For valuing a business or shares, see our business valuation page.

The ROC full form in accounting depends on context. In Indian company accounting, ROC most often stands for Registrar of Companies – the office with which companies file their audited financial statements and annual returns each year. In financial analysis, ROC can also mean return on capital – a ratio showing how much profit a business earns on the capital invested in it, often calculated as return on capital employed (ROCE): earnings before interest and tax divided by capital employed.

For bookkeeping, both meanings matter: the books must support the financial statements filed with the Registrar of Companies, and well-classified books make ratios such as return on capital meaningful.

Owners often treat bookkeeping as a cost to be minimised until the year end. In practice, monthly bookkeeping saves money in several ways. GST input credit that is not matched with supplier filings can be followed up while the supplier still has time to correct it. Duplicate payments and unrecorded bank charges are caught within weeks. Customers who pay late are visible every month, not discovered at the audit. And when a bank, investor or tax officer asks for numbers, they are ready.

• Fewer tax notices, because returns match the books
• Faster audits, because schedules are ready and balances are reconciled
• Better cash management, because receivables and payables are current
• Stronger loan applications, because figures are consistent across returns and statements
• Earlier warning of losses or margin pressure

The cost of catching up on a year of neglected bookkeeping is usually higher than the cost of doing it monthly, and the information arrives too late to act on.

Good bookkeeping depends on documents arriving in an order the team can work with. A simple routine is enough:

• One shared folder per month, with sub-folders for sales, purchases, expenses, bank and payroll
• Purchase bills uploaded as they arrive, not at the month end
• Expense claims with bills, approved before payment
• Bank and card statements downloaded on the first working day of the month
• Contracts, loan papers and fixed asset invoices kept in a permanent folder
• A short note for unusual items – a refund, a deposit, a loan from a director

Digital copies are accepted for most purposes, but originals of certain documents, such as title deeds and some statutory forms, should be kept safely.

For GST-registered businesses, bookkeeping and GST compliance are the same exercise seen from two sides. Sales invoices must carry the correct GSTIN, place of supply and tax rate; businesses above the e-invoicing threshold must generate an invoice reference number before issuing the invoice; and goods movements above the specified value need e-way bills. Purchase entries must match supplier invoices reported on the portal for input credit to be valid. Recording these details correctly in the books, every month, is what keeps the annual GST return and the financial statements in agreement.

A fixed asset register lists each asset with its date of purchase, cost, location, useful life and depreciation. Companies depreciate assets under the Companies Act schedule or their own assessed lives, while income tax uses its own block-wise rates, so two depreciation figures are kept. Disposals, transfers and write-offs must be recorded when they happen. A current register makes the audit faster and supports insurance and loan security.

For traders and manufacturers, inventory is often the largest asset and the easiest to get wrong. Bookkeeping should track stock movements by item and location, value stock at the lower of cost and net realisable value using a consistent method, and record damaged, expired or slow-moving goods. Periodic physical counts reconciled with the books catch losses early and support stock statements given to banks.

In proprietorships and partnerships, owners often pay personal expenses from the business account. These are drawings, not business expenses, and should be recorded as such. In companies, directors' personal expenses paid by the company can be taxed as perquisites or disallowed. Clean bookkeeping separates personal and business spending from day one, which also makes the accounts far more credible to lenders and investors.

Salaries are often the largest expense for service businesses, and payroll entries touch several laws at once. Each month, bookkeeping should record gross salaries by department, TDS deducted on salaries, employee and employer contributions to provident fund and employees' insurance where applicable, professional tax, reimbursements and any advances or loans to staff. The amounts in the books should match the payroll register, the bank payments and the statutory returns. At the year end, provisions for bonus, leave encashment and gratuity are recorded. Clean payroll bookkeeping avoids disallowances of unpaid contributions and makes Form 16 and other employee certificates accurate.

Since 1 April 2023, every company that keeps its books in accounting software must use software that records an audit trail of each transaction – an edit log of every change, with the date – and the audit trail cannot be disabled. Auditors must report on whether this was done. Many non-corporate businesses also benefit from the same discipline.

• Use software that supports an audit trail and keep it switched on
• Give each user a separate login with rights matched to their role
• Lock periods after the month is closed, so old entries are not changed casually
• Back up data regularly and keep backups for the retention period
• Keep source documents linked or filed so each entry can be traced

We work in the software you already use – Tally, Zoho Books, QuickBooks or others – or help you choose and move to one that fits your size and growth plans.

Most small-business frauds and losses are simple: a changed vendor bank account, a duplicate invoice paid twice, cash sales not deposited, or an employee approving their own expenses. Bookkeeping is the first line of defence when it is set up with a few controls.

• Different people record payments and approve them
• Vendor bank details changed only after a call to the vendor on a known number
• Every payment matched to an approved invoice or purchase order
• Daily cash sales reconciled with deposits
• Monthly review of unusual entries, round-sum payments and new vendors
• Bank reconciliation reviewed by someone other than the preparer

When we handle your bookkeeping, these checks are part of the monthly routine, and anything unusual is reported to you, not just recorded.

The year end is where monthly bookkeeping pays off. With reconciled books, the year-end work is mainly adjustments and schedules: physical stock count and valuation, confirmation of major balances, provisions, depreciation, deferred tax where applicable, and the schedules the auditor asks for. The financial statements are then prepared, audited where required, and used for the income-tax return, the GST annual return and, for companies, the filings with the Registrar of Companies. We prepare a year-end file that links each figure in the statements to the books and reconciliations, which shortens the audit and reduces queries.

Reconciliations are where bookkeeping protects the business. A mismatch found in the month it happens is a correction; found two years later in a tax notice, it is a dispute.

Bookkeeping tells you what happened; CFO accounting services use the same numbers to decide what to do next. As a business grows, owners need cash flow forecasts, budgets, margin analysis by product or customer, and reports for banks and investors. Our CFO accounting services build on the monthly books with analysis and planning, while the bookkeeping team keeps the records current. Combining both under one firm means the numbers in the board pack and the numbers in the tax return come from the same source.

1. Review your current books, software and processes
2. Agree the scope, document flow and monthly calendar
3. Set up or clean up the chart of accounts and opening balances
4. Start the monthly cycle with reconciliations
5. Share monthly reports and a list of open items
6. Prepare year-end schedules for the audit and tax filings
7. Review the process every quarter and improve it

You keep ownership of your software and data. Access is given to named team members and removed when the engagement ends.

Many businesses come to us with several months or years of unrecorded or unreconciled transactions. Catching up starts with bank statements, GST returns and invoices to rebuild the books, followed by reconciliations and confirmation of balances with major customers and suppliers. Where tax filings were made on estimated figures, differences are identified and the right correction is planned. A clean starting point is worth the effort: from then on, monthly bookkeeping is faster and cheaper. We also leave a short note of what was corrected and why, so your auditor and any future accountant can follow the trail.

We do not publish fees. The cost depends on the number of transactions, the number of bank accounts and entities, inventory complexity, whether GST, TDS and payroll are included, the reporting needed and any catch-up work. Our team shares the exact total after reviewing your requirements.

An Online Seller With Unmatched Settlements

A seller on two marketplaces recorded only bank receipts. Reconciling settlements showed fees, returns and TCS that had never been booked, and GST returns that overstated sales. After a catch-up, the monthly bookkeeping included settlement reconciliation, and the next GST annual return matched the books.

A Consultant Whose Clients Deducted TDS

A consulting firm had large TDS credits that did not match its income in the books. Reconciling the tax department's records with invoices found missing invoices and a client using the wrong PAN. Corrections were made before the income-tax return was filed.

A Startup Before Its First Audit

A startup with investor funds had kept records in spreadsheets. The books were moved to accounting software with an audit trail, opening balances were set, and the first statutory audit was completed without major adjustments.

• Recording only cash or bank transactions, not accruals
• Mixing personal and business expenses
• Not reconciling GST input credit with supplier filings
• Entering sales without matching credit notes and returns
• Switching off or using software without an audit trail
• Changing closed periods without explanation
• Ignoring old balances in debtors and creditors
• Keeping bills and vouchers in no fixed order

Multiple Entities and Branches

Groups with several companies or branches need consistent charts of accounts, inter-company reconciliations and consolidated reporting.

Foreign Currency Transactions

Exporters and businesses with foreign suppliers need exchange differences recorded correctly and receipts matched with bank documents.

Businesses Under Presumptive Taxation

Even where income is taxed on a presumptive basis, records of turnover, bank transactions and GST must be kept, and books help when a bank or investor asks for accounts.

Non-Profit Organisations

Trusts and societies need fund-wise accounts, grant tracking and records that support their tax exemption.

• We do not act as your statutory auditor at the same time where independence rules prohibit it
• We do not make entries without supporting documents
• We do not backdate or alter closed periods to change reported results
• We do not hold your bank passwords or make payments
• We do not keep a second set of books

If you are a small business with few transactions, a capable in-house accountant and books reconciled every month, you may need us only for a quarterly review and the year-end. We will tell you if that is all you need, and if your in-house team needs only a checklist and occasional training rather than full outsourcing.

1. How many transactions do you have each month?
2. Which software do you use, and does it keep an audit trail?
3. How will documents reach us – shared folder, email, app?
4. Are GST, TDS and payroll included?
5. Are your books up to date, or is a catch-up needed?
6. Who in the business will answer queries?
7. What reports do you need each month?

Your books contain every detail of your business – margins, salaries, customers and plans. As chartered accountants we follow ICAI's confidentiality rules. Access is limited to named team members, data stays in your software and approved folders, and access is removed at the end of the engagement.

• Software with audit trail chosen and switched on
• Chart of accounts set up for your business
• Opening balances confirmed
• Document flow agreed
• Monthly reconciliations completed
• GST and TDS reconciled with portal data
• Monthly reports shared
• Year-end schedules ready for audit and tax

Our only office is in Whitefield, Bengaluru, where clients can meet us in person. Bookkeeping is done remotely in your software for businesses in any state, with state-specific registrations such as professional tax included in the calendar. We do not have offices outside Bengaluru.

What is the accounting meaning in simple words?

Accounting means recording, classifying, summarising and interpreting a business's financial transactions so that its performance and position can be understood by owners, lenders, investors and the government.

What is the difference between bookkeeping and accounting?

Bookkeeping records transactions; accounting classifies, adjusts, reports and interprets them in financial statements and management reports.

What are accounting principles?

Accounting principles are the basic rules and assumptions – business entity, going concern, accrual, matching, consistency, prudence, materiality, money measurement, dual aspect and full disclosure – that make financial statements reliable.

What are the 3 golden rules of accounting?

Personal account: debit the receiver, credit the giver. Real account: debit what comes in, credit what goes out. Nominal account: debit all expenses and losses, credit all incomes and gains.

What is general entry accounting?

General entry accounting means passing a journal entry recording a transaction with equal debits and credits and a narration, used especially for adjustments and non-cash items.

What is financial accounting?

Financial accounting records and reports transactions in financial statements for outside users such as shareholders, lenders and tax authorities, following accounting standards and the law.

What is the GAAP full form in accounting?

GAAP stands for Generally Accepted Accounting Principles – the framework of standards and conventions used to prepare financial statements. In India, Indian GAAP refers to the Accounting Standards, alongside Ind AS for specified companies.

What is the valuation meaning in accounting?

It is deciding the amount at which an asset or liability is recorded, using a measurement basis such as historical cost, net realisable value, fair value or present value.

What is the valuation accounting definition?

The measurement basis used to put a monetary amount on each item in the financial statements – cost, replacement cost, realisable value, fair value or present value.

What is the ROC full form in accounting?

In Indian company accounting, ROC usually means Registrar of Companies, where financial statements are filed. In financial analysis, ROC can also mean return on capital.

What are CFO accounting services?

Services that use the books for planning and decisions – cash flow forecasts, budgets, margin analysis and reporting to banks and investors – beyond routine bookkeeping.

Is audit trail mandatory in accounting software?

Yes, for companies. Since 1 April 2023, companies must use accounting software with an audit trail that records every change and cannot be disabled.

How long must books be kept?

Companies must keep books for at least eight financial years. GST and income-tax laws have their own retention periods, which we track for you.

Which accounting software do you use?

We work in your software – Tally, Zoho Books, QuickBooks or others – or help you choose one that suits your business.

Can you catch up on pending books?

Yes. We rebuild the books from bank statements, GST returns and invoices, reconcile them and confirm balances, then move to monthly bookkeeping.

How much does bookkeeping cost?

We do not publish fees. The cost depends on transaction volume, entities, inventory, scope and catch-up work, and our team shares the exact total after reviewing your requirements.

Financial Statements and MIS · Virtual CFO Services · GST Registration and Returns · TDS and TCS · Cloud Accounting · Payroll Processing

Share your business type, monthly transaction volume, software and the date your books were last reconciled. Our team will suggest the scope, the monthly calendar and any catch-up needed.

Contact Details

Office Address

IMAK Advisory, ITPL Main Rd, Pattandur Agrahara, Whitefield, Bengaluru, Karnataka 560066, India

Phone

+91 79798 50684 (call or WhatsApp)

Email

imakadvisoryteam@gmail.com

Sources: Companies Act, 2013 (section 128) and Companies (Accounts) Rules, 2014 (audit trail from 1 April 2023); Accounting Standards and Ind AS notified under the Companies Act; ICAI Conceptual Framework; CGST Act, 2017 record-keeping provisions. Checked 2 November 2026.