For any new company registration or new Pvt Ltd Company Registration, their long term growth depends on how they manage their Accounts at this stage. And no, we are not stretching by suggesting so and we are speaking this with full responsibility. To grow big. Company registration needs fund which is next to impossible if your accounting is not upto the mark. Some of the common accounting and bookkeepingmistakes made by owners of new company registration are:
Show Lesser Revenue than actual to save GST: We have seen many entrepreneur who show lesser revenue as they want to save on GST Return. Well, never be pound foolish and penny wise. Never show lesser revenue than actual as Revenue clocked by your company registration is actually the most important thing which anyone sees about your company.
Not building Assets when possible: If you are buying a TV or a Laptop or a Car which will be sued for your Company purpose, book the same as Assets for your company registration. Everyone likes Company with Assets and especially Bankers!!!
Showing losses to avoid paying Income Tax: Pay Taxes. It is not just orally correct but a fine financial decision as well. If your company is making profits, you should declare it as in the long run future of your company is decided by it.
Not depositing cash sales in bank account: If you collect cash as revenue, deposit it in bank and then take out from bank for expenses. This is the right way of accounting and doing so also ensures that Bank Account Transactions looks attractive. Not raising Invoices: Raise invoice for all revenue booked. A basic excel format is OK but raise invoice as any due diligence which happens later will definitely point out this shot coming