Small Scale Industries Business Ideas In India – Bookkeeping is important in any business, be it large or small. Unfortunately, this process, which has a direct negative impact on the business, is often neglected by sales and business entrepreneurs. Accounting can be a burden during the growing stage of a business, but it is essential …

Small Scale Industries Business Ideas In India

Small Scale Industries Business Ideas In India – Bookkeeping is important in any business, be it large or small. Unfortunately, this process, which has a direct negative impact on the business, is often neglected by sales and business entrepreneurs.

Accounting can be a burden during the growing stage of a business, but it is essential for the day-to-day functions of the business that keep the business running successfully.

Small Scale Industries Business Ideas In India

Small Scale Industries Business Ideas In India

Anish Soni, a sartorial businessman, started his textile business three years ago and has been doing well so far. However, for record keeping, he maintained a register in which he recorded transactions such as tax due from customers, accounts payable to suppliers, etc. He now wants to expand his business and use bank funds, that is, a cash loan, but the bank rejected his request.

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He was also denied a cash loan because he could not predict his income and expenses and had no accounting records. To make matters worse, he received notice from the tax department to clear his income tax liability. Due to lack of proper books of accounts, he could not meet his income tax liability and was fined heavily. He is on the verge of closing down his business due to a severe cash crunch.

This may be a hypothetical situation, but it requires proper accounting books. Bookkeeping is important in any business, be it large or small. Unfortunately, this process, which has a direct negative impact on the business, is often neglected by sales and business entrepreneurs.

In fact, soe SE was financially unsuccessful due to poor or lack of accounting. They do not keep books of accounts because they consider it useless for their business to keep books of accounts. On the contrary, the financial agent is very important to the success of the business.

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Without it, the fear of experiencing a cash flow crisis, losing someone, and other financial information issues can lead to the business closing down. In this competitive market, accurate accounting is a necessity for every business. Khandelwal R Sethi & Ravi Khandelwal, Partner, Copany says, “Starting and maintaining solid accounting records is essential for business growth.”

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Bookkeeping is the process of recording and maintaining financial transactions and information related to a business on a day-to-day basis. It ensures that individual transaction records are updated correctly, comprehensively and accurately.

To prepare financial statement: Balance sheet, income statement, cash flow statement are key elements to provide your investors/financiers/bankers with important information about the financial status of the companies and to prepare these financial statements you need books of accounts. count.

To meet tax obligations: If you want to do business, you need to pay income tax, sales tax, excise duty, service tax, central sales tax etc. In litigation, you must have adequate and accurate books of account.

Small Scale Industries Business Ideas In India

Legal Requirement: As per Section 44AA of the Income Tax Act, any person whose income from business or profession exceeds Rs. 1.20 lakhs or total sales/circulation/gross receipts exceeds Rs. 10 lakhs is definitely required to maintain books of account for income tax. Section 128 of the Companies Act, 2013 also requires every company to maintain books of accounts.

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A better financial agent: Nowadays, a better financial agent gives a better picture of the health of the company. You must have adequate records of business operations to forecast financing needs, obtain the necessary capital, and analyze investment decisions.

Fixing the price: Fixing the price is the biggest problem for all businessmen – at what price should he sell his product or service? A product is priced on a cost plus margin basis and you must have proper records of the product’s cost elements to determine the product’s cost. “A business without a passbook is like a blindfolded driver who can easily crash,” says Praveen Vashistha, Director, Prooter, Gxpress Solution India Pvt Ltd.

For simplicity, accuracy and security of accounting books, business owners can keep their accounting books electronically. Even Section 128 of the Companies Act, 2013 allows for the maintenance of electronic books of account. There is a variety of software available in the market to maintain your account books at affordable prices. In accounting, every transaction should be recorded in accordance with applicable accounting standards and principles, as these principles/standards ensure accuracy and all requirements of industries and laws. Therefore, it is necessary to consider the following aspects while preparing the account books.

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Double Entry Accounting System: It serves as an error detection system. Under the double-entry accounting system, each transaction consists of two parts; so both accounting records are affected when recording the transaction. This includes a debit entry to one account and a credit entry to another account. If the sum of the debits is not equal to the corresponding sum of the credits, then an error has occurred. It also ensures the accuracy of transaction accounting.

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Accrual Basis Accounting: The accrual basis of accounting is considered the standard accounting practice worldwide because it accurately provides a company’s profitability as it accounts for all income and expenses regardless of cash collections and expenses. For example, an expense incurred during a period that has not been invoiced by the end of that period is considered an accrued expense and is still recognized.

Record every transaction: Whether purchase or sale, expenditure or income, payee or receipt, should be recorded in the books or accounting system every day, because the record of each transaction means that we are preparing relevant and complete books. count.

Documentation: For each transaction, there should be a document describing the business transaction, such as sales invoice, supplier invoice, supplier payee, bank payee and journals. These documents provide audit evidence for each transaction and are an important part of obtaining accurate records during an audit.

Small Scale Industries Business Ideas In India

Accounting can be a burden during the growing stage of a business, but it is essential for the day-to-day functions of the business that keep the business running successfully.

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(Disclaimer: The opinions expressed in this column are those of the writer. The facts and opinions expressed herein do not necessarily reflect the views of www.econoicties.co.)

This is a break with a 25 bps increase this week. Global, Indian FCG Cos in race for Capital Foods. Several IT orders sent under Black oney Law 31 Deadline Small-scale industries are very labor-intensive, but they require limited capital. That is why many people want to start their own small business. In this article we will discuss what is a small scale industry and how to start a small scale industry in India.

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Small scale industries are industries that are labor intensive but require little or limited capital. These industries are also characterized by the use of smaller machines and fewer employees. The small scale industry sector has been growing and developing in the Indian economy for the last three decades. About 95 percent of industrial units in India are small scale industries. There are three types of small scale industries which are as follows:

We discussed earlier that small industries require less capital. That is why small business owners and entrepreneurs are always ready to start their own small industrial business. So here are some tips for those who want to start a small industrial business.

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The first and foremost step to be taken when starting a small business is to choose the product to be manufactured. Before choosing that product, one should do market research on various products and only then choose to launch it. Some factors to consider during market research are:

A potential business entrepreneur should have small scale business ideas before production because the product is the core of the business. Some examples of small scale industries are manufacture of handmade chocolates, manufacture of handmade soap, manufacture of spices, papad and other dry food products, manufacture of hair oil etc.

Location is a crucial factor when setting up a small scale industry. Location affects many other important factors such as transportation costs, availability of raw materials, low cost of land. Assume that the location of the manufacturing unit is close to the source of raw materials. In this case, transportation costs are reduced and it brings maximum profit. In India, the government also offers pre-built areas or developed plots for the development of small scale industries. So, if a person wants to start a small scale manufacturing business, he can register with the government and start it easily.

Small Scale Industries Business Ideas In India

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