This is a user generated content for MyStory, a YourStory initiative to enable its community to contribute and have their voices heard. The views and writings here reflect that of the author and not of YourStory.

Why Should Startups hire CA? | Chartered Accountants

Hire CA for Startups in India | Chartered Accountants

Why Should Startups hire CA? | Chartered Accountants

Tuesday September 03, 2019,

5 min Read

Why Should Startups hire CA?

As a startup registration process, whether a Private Limited or LLP or just a partnership firm, you need to register your company with the Registrar of Companies. The startup registration process further, includes filling forms and information with the Ministry of Corporate Affairs to start your business legitimately. Thus, a CA or an online chartered accountant is the best consultant who can help you with your startup registration process.


Additionally, your startup registration process in case of Private Limited Company requires documents like Memorandum of Association or Article of Association, and in case of Partnership or LLP you need the Partnership deed. Such documents are well prepared by the chartered accountants.


However, along with filling the right documents and registering the Company, a startup also requires proper accounting and financial support. Thus, a chartered accountant can support you manage your Organizations share holdings, your cash flows, projections and account statements.


The CA is also important for startups registering as a Private Limited Company. They guide the process and also file all your shareholding details and transactions as required for a Private Limited Company. As such, if you do not know anyone, search the best online chartered accountant from the list of top chartered accountants in India to smoothen your startup registration process.


How CA can contribute to Growth of Your Startup in Long run? 

A CA is also crucial to a startup when they start hiring. As an employer, you may even start with just one or two employees. Yet, it is imperative that you follow all taxation policies like TDS, Labor Laws ,Salary provisions etc for your team. An online chartered accountant can be your best guide who can help you understand the different salary payable methods for all your employees, do's and dont's of making payments in order to save income tax legally. They also guide you with the business revenue forecast, projected balance sheet or project report which you may require in filing contracts or applying for funds.


Thus, in the present scenario of technology advancements, taxes and laws concerning Company operations is vital and has to be followed sincerely. It is important that you have regular tax returns filed as per the Income Tax act. As such, an online chartered accountant can help you with all kinds of icompliances and tax filling too.


Your account books grow as your startup grows. It is not the same as the time of your startup registration. It is crucial to follow the standard accounting procedures maintaining all debit and credit systems intact. A CA will guide you appropriately and manage your account book as per the standard required.


Additionally, as your startup progresses, you will be required to maintain your accounts for Tax filling with the Income Tax and Annual filing with Registrar of companies. At such times, you definitely need a certified auditor to file your ITR returns and do the tax Audits if your turnover of your business crosses the threshold limit. Another mandatory compliance-annual filling is a compulsory procedure to be followed by every Company whether small or big. It is also important that you understand your profits and loss and this is significantly the job of a CA. As such it is important you find the best CA from the list of top chartered accountants in India for your startup to benefit and function appropriately. 


Having a good CA is important for a startup


Right from the ideation to validation, or whether your startup registration, good consultation and recommendation determines the growth of a startup. Having invested time and money, it is crucially important to balance your book of account for your startup to succeed.


Thus, when your startup takes a forward leap since the day of your startup registration and initiation, an expert CA would not just provide you proper financial statements of your Organization, but also support you understand the shareholding and investment pattern in your Company.


Whether it is about paying the right tax as per Income Tax laws or about saving the Company form any unwanted tax liability, a good online chartered accountant, available at all hours is required to guide you at all stages. A CA also can help you understand all other statutory rules and regulations, legal procedures, your Company laws or employment details.


One startup, One CA


While you may find many online chartered accountants, it is integral to find the right one. As chartered accountants manage crucial business for your startup, it is recommended to engage the best online chartered accountants at all times. Having multiple chartered accountants can spoil your books.


Also, while you may find the best from the list of top chartered accountants in India, it is advisable to choose online chartered accountants who is easily accessible at all hours and also affordable. Thus, engage a single chartered accountant right from the day you plan for your formal startup registration to executing your idea into reality.