ACCOUNTING PROCEDURES OF A

CHARTERED ACCOUNTANT FIRM

PROJECT REPORT SUBMITTED TO GURU NANAK DEV

UNIVERSITY, AMRITSAR IN PARTIAL FULFILMENT FOR
THE DEGREE OF BACHELOR OF COMMERCE
(HONOURS) (2019 – 2022)
SUPERVISED BY- SUBMITTED BY-
Dr Mandeep kaur Kunvardeep singh

Bcom (hons) sem 6

Roll no -17241982972

UNIVERSITY SCHOOL OF FINANCIAL STUDIES

GURU NANAK DEV UNIVERSITY
 DECLARATION
This is to certify that the project report entitled “Accounting
Procedures of a Chartered Accountant Firm” submitted by me, in the
partial fulfilment for the Degree of Bachelor of Commerce (Honours)
is the result of my original and independent research work carried
out under the guidance Dr. Mandeep kaur, University School of
Financial Studies, Guru Nanak Dev University, Amritsar (Punjab).

I declare that this paper has been prepared for academic purpose of
B. Com (Hons.) and as a whole or any part of this report has not been
submitted elsewhere for the award of any other degree, diploma,
fellowship or other similar title of any other University or Institution.
All the ideas and references have been duly acknowledged.

Dated-

March 2022
 INDEX
Sno. Particulars

1. Profile of the organization

2. Problem statements

1 Filing of TDS returns

2 Operating busy win

3 Plans for the rest of internship

PROFILE OF THE
ORGANIZATION
 PROFILE OF THE ORGANIZATION

INTRODUCTION
The firm “Mehra & Associates”- Chartered Accountants was set up in
the year 1992 by CA. Sunil Mehra who has more than 30 years of
experience in this profession. Mehra & Associates strives to provide
quality services in the areas of Audit, Taxation-both Direct and
Indirect, Business Registration, Financial and Management
Accounting, Income Tax Consultancy, TDS (Tax Deducted at Source)
entries, TCS (Tax Collected at Source) entries, CMA (Credit
Monitoring Arrangement) data, GST Registration, Bookkeeping and
much more.
The firm strives to position itself in the given fields as a customized
service provider as per the business requirement. The firm is well-
geared to take up any professional assignments in the above areas.
The professional staff members have specialized knowledge and
experience necessary for providing all of the above services.
Planning the business resources coupled with compliances of law
has become a challenge today. The above requires extensive
theoretical knowledge and practical experience. The firm Mehra &
Associates and their associates have sound theoretical knowledge
and vast practical experience. By sharing their knowledge and
practical experience with the team members and clients, the firm
ensures effective and timely redressal of issues arising on routine
basis or that can arise later.
The firm is well-versed with Company Law (including Accounting
Standards) and indirect taxes and direct taxes. They are in a position
to provide diligent, efficient and effective professional service in all
of the above areas
 ABOUT THE FIRM

Type Sole proprietership

Email Sunil.mehra@gmail.com

Mobile no 7986212440

ICAI Registration no. ICAI-082364

Proprieters name CA sunil mehra

Pan no. IDBPS2995L

Founded 1992
CA Sunil Mehra
Team members Mr Bhargav
Mrs shivani
Mehra& Associates is working as a Chartered Accountants firm under the rules
and regulations and code of ethics designed for all CA firms throughout India
by ICAIThe Institute of Chartered Accountants of India. The Institute of
Chartered Accountants of India (ICAI) is a statutory body established on 1st
July, 1949 by The Chartered Accountants Act, 1949 for regulating the
profession of Chartered Accountancy in the country.
The Institute, functions under the administrative control of the Ministry of
Corporate Affairs, Government of India. The ICAI is the second largest
professional body of Chartered Accountants in the world, with a strong
tradition of service to the Indian economy in public interest.
The affairs of the ICAI are managed by a Council. The Council constitutes of 40
members of whom 32 are elected by the Chartered Accountants and remaining
8 are nominated by the Central Government generally representing the
Comptroller and Auditor General of India, Securities and Exchange Board of
India, Ministry of Corporate Affairs, Ministry of Finance and other
stakeholders.
Over a period of time the ICAI has achieved recognition as a premier
accounting body not only in the country but also globally, for maintaining
highest standards in technical, ethical areas and for sustaining stringent
examination and education standards. Since 1949, the profession has grown
leaps and bounds in terms of members and student base.
ICAI performs various functions which include regulating the profession of
Accountancy, education and examination of Chartered Accountancy course,
continuing professional education of members, conducting Post qualification
courses, formulation of Accounting Standards, prescription of Standard
Auditing Procedures, laying down ethical standards, monitoring quality
through peer review, ensuring standards of performance of members, exercise
disciplinary jurisdiction, Financial Reporting review and lastly, its input on
policy matters to Government.
 SERVICES RENDERED
The firm has identified the following critical parameters for an organization’s
success, which range from optimum utilization of resources to legal
compliances. Based on the diverse requirements of business, the firm is in a
position to provide the following services to enable the organizations meet
their objectives: -

BUSINESS REGISTRATION
 Formation of a Legal entity which includes Sole Proprietorship, LLP,
Company, OPC, Partnership etc.
 Legal Drafting which includes Partnership Deed etc.
 Business Advisory.
 Various other registrations for startups under various laws.

AUDITS
 Statutory Audit
The firm conducts statutory and regulatory compliance audits for filing of
annual or periodic financial results. Statutory audits are aimed at achieving
compliance with regulations, assessing the strength of controls, confirmation
of accounting treatments of recorded transactions, independent review of
reported information and preparation of accountants' report.

 Tax Audit
The firm annually serves our clients in area of tax audit under various
provisions of the tax laws. Their clients include large, medium corporations and
small businesses, partnership firms and high net worth individuals.

 Internal Audit
The internal audits are conducted with varying client requirements but
essentially the objective, thereof, is to provide assurance on controls and
processes. The firm also conducts risk-based management audits and also help
them in defining standard operating procedures.
 Stock Audit and Book Debt Audit.
 Fixed Assets Verification etc.

TAXATION
 Tax planning.
 Filing of GST Returns for all entities viz., Individuals, HUF's, Partnerships,
Firms and Companies.
 Income Tax Return Filing. o Income Tax Return (Salaried) Income Tax return
of salaried employees can be filed with the help of Form 16 & Form 16A &
Form 16A. Form 26 AS helps in getting information about TDS on salary. The
firm helps in better tax planning and reducing the TDS.

o Income Tax Return (Business)

Income Tax returns filing is requirement of Income Tax Act, 1961 for
companies or businesses. Tax Audit Report helps in compliance of Income Tax
laws. The firm helps in tax planning and avoidance.
 TDS/TCS Return.
 GST Registration on the GSTN Portal.
 Registration of Taxpayer on Income Tax e-Filing website.
 Income Tax Consultancy Work including guidance for transfer pricing,
proper tax planning.
 Indirect tax advisory services- GST.
 Representing clients before tax authorities. FUND RAISING
 Preparation Bank Loan Application.
 Preparation of Project Report.
 Preparation of CMA data.
 Working Capital.
 Term Loan.  Project Finance.
 Loan against property.
 COMPANY LAW MATTERS
 Incorporation of company.
 Consultancy on Company Law matters.
 Planning for Mergers, Acquisitions, De-mergers, and Corporate re-
organization.
 Compliance with fiscal, corporate and tax laws.
 Filing of annual returns along with various forms and documents.
 Maintenance of Statutory records.
 Consultancy on Public/Rights/Bonus Issue of shares.  Change of Name,
Registered Office, etc.

BUSY ACCOUNTING
 The firm takes up the accounts of small and medium sized businesses and
keeps the record of their transactions in the accounting software.
 Entering Invoices into the accounting software including Sales Invoice,
Purchase Invoice, Payment Invoice, Receipt Invoice, Sales Return Invoice,
Purchase Return Invoice etc.
 Auditing of the books kept and their filing.
 Monthly GST Return filing of the books. The GST Summary is available
within the accounting software.
 PROBLEM STATEMENTS
1.FILING OF TDS RETURNS
TDS Return is a quarterly statement submitted by the
deductor to the Income Tax Department. The statement
shows a summary of all the entries for TDS collected by the
deductor and the TDS paid by the deductor to the Income Tax
Authority.

Due Date to File TDS Returns

Quarter Quarter Period

1st Quarter April – June
2nd Quarter July – September
3rd Quarter October – December
4th Quarter January – March

How to get return of TDS amount

First is to declare it in your IT return form and the income
tax department will automatically compute the refund and
credit it to your bank account. Second way is to fill form 15G
and submit it in your bank telling them that your salary is below
tax slab and hence no tax should be levied on it.

Eligibility for filing TDS

 Employers and organisations with a valid TAN are qualified
for filing TDS returns. Individuals whose accounts are audited
under Section 44AB, and hold an office under the government
or companies are liable to file online TDS return every quarter.
The TDS rates to be applicable on income for the current year
is updated in the TDS rates chart . TDS stands for Tax
Deducted at Source.
...
TDS Deduction Rate.

Taxable Income Tax Rate

Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

The TDS statements can be uploaded using DSC. To upload

using DSC, first upload the TDS zip file and also attach the
digital signature file. Then, click on Upload. Once the TDS
statement is uploaded, a success message will appear on the
screen and a confirmation mail will be sent to your registered
email ID.

TO CHECK TDS STATUS BY PAN CARD

1. Visit www.tdscpc.gov.in/app/tapn/tdstcscredit.xhtml.
2. Key-in the verification code.
3. Click on 'Proceed'
4. Enter the PAN and TAN.
5. Select the financial year as well as the quarter and the
type of return.
6. Click on 'Go'
7. The details will be displayed on the corresponding screen.
2 OPERATING BUSY SOFTWARE
INTRODUCTION
The digital transformation that triggered the 21st century banking revolution
and is now making waves in the accounting sector. India’s rapid digitisation has
thrown open a new growth path for several traditional sectors. Be it something
as simple as buying grocery or seeing a doctor, there has been a meteoric rise
in industries going online. The good news is- it’s not just the consumer sectors
that are moving online, businesses especially small ones that had remained
mired in an offline world are increasingly embracing online. Take bookkeeping
for example, an extremely complicated and secretive domain that businesses
so far have relied on doing manually. With the advent of digital tools, ledger
management is no more the most arduous task for small businesses.
Many of these small businesses are engines of the economy. India’s MSME
sector contributes 29 % to the country’s GDP and nearly 50% to total exports.
It’s also one of the biggest employment generators. While a good chunk of
commerce has moved online, small scale retail found it hard to make the shift
as its processes remained offline. Digital payments along with digital account
management hold immense potential for these businesses to leap further.
The two major drivers for this digital transformation have been availability of
digital infrastructure in the form of highspeed internet connectivity and
government’s impetus on “Digital India”. The remarkable success of digital
payments in India has been the torch bearer for many entrepreneurs. No
wonder, it has caught attention globally with Microsoft founder Bill Gates
being the latest one to praise it. Between 2015-16 and 2019-20, digital
payments grew at a CAGR of 55.1 % as per RBI’s data. The digital bookkeeping
sector has a huge opportunity to ride on this success.
The sheer convenience of accessing your accounts anytime, anywhere without
going through reams of paper or relying on your memory makes digital
bookkeeping a “must 10 have” tool for small businesses. Beyond that, though,
there are numerous advantages. Automation of repetitive number crunching
processes with technology not just saves time but also helps these businesses
derive actionable insights and thus increases productivity & efficiency.
The retail business, more so the small shop owner in India is fraught with
“credit” risk. A large chunk of customers transacts on the basis of credit and it’s
a painful and at times, an unpleasant task to get receivables. As per an
estimate, $400-$500 billion worth of retail trade in India happens on credit. In
several cases, shopkeepers end up losing money because the record-keeping is
so poor. The digital bookkeeping apps are built for these situations.
One can maintain a log of cash outflow and receivables at one place. With a
visibility on both these, businesses are able to better manage and plan their
cash cycles. Digital Accounting Apps also sends payment reminders making
sure receivables come on time. What’s more- they don’t need an extra
manpower to do these tasks, which brings more efficiency in the business.
There are opportunities galore in digital account management as business
needs are vast and extend beyond bookkeeping. But even at the current stage,
given the large number of small and medium businesses in India, digital
accounting has a tremendous potential. With the number of internet users
expected to surge to 840 million by 2023, the digital accounting market is
expected to witness a growth of 8.5%.
But what is Digital Accounting? It has been said that “Accounting is the
language of business.” The ever-evolving digital technologies of accounting will
affect the future of financial professionals in ways that have not yet been
imagined.
Digital accounting refers to the formation, representation and transmission of
financial data in an electronic format. Computers and accounting software
have transformed the financial industry. Technology advancements have
enhanced the accountant’s ability to interpret and report data faster, more
efficiently and more effectively than ever before. To clarify a misconception,
digital accounting doesn’t eliminate the role of an accountant or dismiss the
importance of accounting routines. It rather values and empowers accounting
professionals by making their work more efficient.
 BUSY WIN
BUSY - is a powerful GST Compliant Business Accounting
Software that keeps you on the top of your business by
managing not just accounting but your complete business.
Busy Accounting Software is an integrated business accounting
and management software for Micro, Small & Medium
Enterprises (MSMEs). With over 600,000 licenses sold in over
20 countries, it is one of the leading business accounting
software in India, South Asia, Middle East Asia, and Africa.

BUSY accounting software covers complete financial accounting

or Bookkeeping, Advanced Inventory Management, GST Billing
and GST Return Filing, MIS, Operations Management, Payroll,
Customer Management, multi-location inventory, multi-
currency, multi-tax capabilities, multi-branch management,
order processing, payroll, MIS, Invoicing and much more,
which helps you make informed decisions to scale your
business. To cater to MSMEs' diverse needs, BUSY is offered in
three different editions, namely, Basic, Standard & Enterprise,
for businesses of different sizes and styles. Being a horizontal
product, BUSY can be used in almost all types of Business
Segments and Industry Verticals like FMCG, Retail,
Manufacturing, Trading, Distribution, and Services. BUSY is
sold and supported through its network of over 500 Channel
Partners, thousands of Resellers, and Solution Partners all
across India and abroad.

KEY FEATURES OF BUSY WIN

Here are some of the critical features of BUSY billing software.

1. Invoicing

You can easily handle all your related invoicing requirements using
BUSY accounting software. These include GST invoicing, tax inclusive
and billing on MRPs, multiple taxes in a single invoice, and a POS data
entry screen for fast billing.

2. GST- Ready
BUSY billing software follows the stringent GST (Goods and Service
Tax) guidelines. It is a joint tax levied by both the State and Central
Government on the supply of certain goods and services. To help you
stay on top of all your GST-related needs, BUSY accounting software
lets you do the following things:

 Automatic tax category creation

 Provision of entering GSTIN and Aadhar number in the account

master

 Let's join the SAC (Services Accounting Code) number and HSN
(Harmonized System of Nomenclature) code in the item master.

 Automatically calculates and adjusts CGST (Central Goods And

Service Tax), IGST (Integrated Goods and Service Tax), and
SGST (State Goods and Service Tax)

 Provides a detailed summary of GST reports

3. Inventory Management

BUSY billing software is enriched with inventory management features

and can generate comprehensive analysis reports for different items.

4. Checks and Controls

BUSY accounting software lets you stay on top of all user and
accounting activities. It offers modules like user-definable warning
alarms, triggers and alerts, voucher audits, data checklists and provides
you a detailed insight into all tasks.

5. Enquiry and Support Management

While BUSY GST software is super easy to understand, it is natural to

have queries while working your way out with the software. For this,
BUSY offers a dedicated in-house inquiry and support management
system. You can either reach out to their helpline or mail your queries.
Here’s the BUSY software customer care number for your
reference: +91-11-40964096

6. Taxation

BUSY accounting software lets you access functions like the generation
of state-wise sales tax reports and have VAT(Value Added Tax)
registers as per customer needs. It also offers modules such as tax-paid
stock details and sales tax surcharges.

Advantages of Using BUSY App

Some of the benefits of investing in BUSY software include-

1. Centralized Database

BUSY accounting software lets you centralize key business processes

such as invoicing, customer relationship management, payroll, and
inventory management. With BUSY, you no longer need to waste time
and money on different tools to make your business processes
streamlined and efficient.

2. Eliminate Manual Bookkeeping

BUSY billing software lets you process front and backend transactions
simultaneously. Moreover, it enables you to create bank deposits,
prepare customer invoices, write cheques and keep your books in order.

3. Real-time Monitoring

BUSY lets you create and maintain financial records easily and generate
in-depth reports anytime and anywhere. This lets you monitor financial
records and resolve issues before they escalate into big problems.

4. Cash Flow Management

BUSY accounting software lets you keep track of your payables and
receivables. This will help you analyze your present and future cash flow
status. Moreover, it also enables you to keep records of bills and
invoices. Thus, helping you avoid late fees and overdraft charges.

5. Shorter Learning Curve

As a business owner, you cannot spend hours learning new software.

However, BUSY accounting has significantly considered this and
optimized its tool to have a shorter learning curve. This means even if
you have zero knowledge of accounts, you can use the system
effectively and minimize accounting errors and reconciliation issues.
Besides, BUSY also provides adequate customer and training support to
help you make the best use of the software.

6. Scalable Solutions
BUSY offers excellent customization capabilities and scalable database
functionality. Be it a startup, a small business, or an enterprise; BUSY
has something for each of them.

7. Organized Processes

It is straightforward to misplace manual invoices and lose them. BUSY

lets you store all data and information in a single location. Moreover, it
lets you review, reprint, and resend them without any hassles. You can
easily search for invoices with invoice numbers, amounts, and names.

8. Actionable Reports

BUSY accounting software lets you calculate your profits and learn
which customers generate the most revenue for your company. You can
use it to get the exact information you need and save precious time.

Besides, you also get access to detailed reports on the amount of tax
your company needs to pay. This will help you collect all the information
you need to prepare and file tax forms.

PLANS FOR THE REST OF INTERNSHIP

For the rest of internship I will learn how to make and
file GST returns and income tax returns and will learn
advanced bookkepping on busy win.