Accounting, Bookkeeping & Advisory
Maintain accurate financial statements, compile project reports for bank financing, and streamline compliance.
Accurate Financial Records to Drive Business Stability & Capital Funding
Maintaining accurate accounts is not just a statutory requirement under the Companies Act and Income Tax Act—it is an essential tool for business management. A structured ledger system provides clear insights into profit margins, inventory trends, accounts receivable, and cash flow cycles. Furthermore, when applying for bank financing or overdraft facilities, financial institutions require clean, audited financial statements. Adv. Saurabh Sonar & Associates provides comprehensive accounting and bookkeeping services, ensuring your records are accurate, tax-compliant, and audit-ready.
We provide accounting solutions for small businesses, grape cold storage facilities, medical clinics, and manufacturers in Sangli and Miraj, managing the entire bookkeeping process smoothly.
Our Accounting & Financial Services
Setting up custom accounting charts, recording daily transactions, and maintaining cash/bank books.
Preparing regular Profit & Loss (P&L) statements, Balance Sheets, and Cash Flow summaries.
Managing employee payroll sheets, and handling registrations for Provident Fund (EPF), ESIC, and Professional Tax (PT).
Preparing project reports and CMA data sheets to support bank financing, term loans, and overdraft (OD) requests.
Reconciling bank ledgers and matching purchase books against GST portals (GSTR-2B) to secure input tax credits.
Organizing and compiling required document books to support chartered accountants during statutory or tax audits.
The Importance of Project Reports & CMA Data for Bank Loans
When seeking business loans, cash credit (CC) limits, or machinery term financing, banks require a detailed **Project Report** and **CMA (Credit Monitoring Arrangement) Data**. A project report outlines your business profile, market demand analysis, manufacturing process (if applicable), raw material sourcing, and financial feasibility projections for the next 5 years. CMA data is a standardized format displaying historical financial figures and future projections, including key indicators like Debt-Equity Ratio, Current Ratio, Debt Service Coverage Ratio (DSCR), and Working Capital cycle efficiency.
Preparing these documents requires a deep understanding of banking guidelines and underwriting norms. Adv. Saurabh Sonar & Associates drafts realistic, bank-compliant project reports and CMA data sheets, helping secure funding approvals for our clients.
Employee Benefits and Statutory Compliance
Businesses with growing workforces must manage statutory payroll deductions. Under current regulations, entities with 20 or more employees must register for **Employee Provident Fund (EPF)**, while those with 10 or more employees must register for **Employee State Insurance (ESIC)**. Additionally, in Maharashtra, employers must register for **Professional Tax (PT)**, deducting PT from employee salaries and filing monthly returns. We manage these payroll filings, ensuring compliance and avoiding penalties.
Bookkeeping Checklist
To set up your accounting ledgers, please compile these documents monthly:
- Bank Statements (PDF / Excel)
- Loan account statement statements
- Cash transaction details
- Tax Invoices for outward sales
- Purchase bills for expenses
- Debit & Credit note registers
- Attendance and salary sheets
- EPF/ESIC payment slips
- Professional Tax deduction details
Need Bank Financing?
Get CMA data sheets and project reports prepared for your bank loan application.
Best Bookkeeping Practices for Small and Medium Enterprises
Consistent, systematic bookkeeping is essential for any business. Let's explore the key practices that help maintain accurate financial records and support long-term growth.
1. Maintaining Separate Personal and Business Accounts
A common mistake for sole proprietors is mixing personal and business transactions in the same bank account. This makes tracking actual business profitability difficult and complicates tax calculations. We assist clients in establishing separate business current accounts and implementing bookkeeping systems that isolate business expenses, ensuring clean financial records.
2. Implementing the Double-Entry Accounting System
The double-entry system is the standard for modern business accounting. Under this system, every financial transaction has a dual effect—affecting a minimum of two accounts, where one account is debited and another is credited. This ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance. It provides a structured foundation for generating accurate Trial Balances, P&L accounts, and Balance Sheets.
3. Regular Reconciliation: Bank and GST Ledgers
Reconciliation is the process of matching transaction records from different sources. We perform regular reconciliations to ensure financial accuracy:
- Bank Reconciliation Statement (BRS): Matching bank statements against internal cash books to identify discrepancies, un-cleared checks, bank charges, or unauthorized transactions.
- GST Reconciliation: Matching purchase books against GSTR-2B statements to identify discrepancies in vendor filings, protecting input tax credits.
- Debtor & Creditor Reconciliation: Regularly matching statement books against customer and supplier records to verify outstanding balances.
4. Accrual vs. Cash Basis Accounting
Businesses must choose between two accounting methods: the Cash Basis or the Accrual Basis. Under Cash Basis accounting, income and expenses are recorded only when cash actually changes hands. Under Accrual Basis accounting, income is recorded when it is earned and expenses are recorded when they are incurred, regardless of cash flow timing. The accrual method is mandatory for corporate companies under the Companies Act, as it matches revenues and expenses to the correct period, providing a realistic view of financial performance. We help implement the appropriate accounting method for your business.
Understanding Key Financial Ratios for Underwriting
Banks and financial underwriters evaluate key financial ratios to assess your business's creditworthiness. Maintaining healthy ratios is essential for loan approvals:
- Current Ratio: Calculated as Current Assets divided by Current Liabilities. It measures a business's ability to cover short-term obligations. A ratio between 1.33 and 2.0 is generally preferred by lenders.
- Debt-Equity Ratio: Calculated as Total Debt divided by Shareholder's Equity. It measures the proportion of business financing provided by debt vs. equity. Lenders prefer a ratio below 2:1.
- Debt Service Coverage Ratio (DSCR): Calculated as Net Operating Income divided by Total Debt Service (principal + interest payments). It measures the business's ability to service its debt. A DSCR above 1.25 is required by most banks.
Maintain Accurate and Tax-Compliant Accounts
Let Adv. Saurabh Sonar & Associates manage your day-to-day bookkeeping and payroll compliance.