ACCOUNTING
INTRODUCTION
Accounting or accountancy is the measurement, processing, and communication of
financial and non financial information about economic entities[1][2] such
as businesses and corporations. The modern field was established by the Benedikt
Kotruljevic in 1458[citation needed], (Italian: Benedetto Cotrugli; 1416–1469) merchant,
economist, scientist, diplomat and humanist from Dubrovnik (Croatia),
and Italian mathematician Luca Pacioli in 1494.[3] Accounting, which has been called the
"language of business",[4] measures the results of an organization's economic activities
and conveys this information to a variety of users,
including investors, creditors, management, and regulators.[5] Practitioners of
accounting are known as accountants. The terms "accounting" and "financial reporting"
are often used as synonyms.
Accounting can be divided into several fields including financial
accounting, management accounting, external auditing, tax accounting and cost
accounting.[6][7] Accounting information systems are designed to support accounting
functions and related activities. Financial accounting focuses on the reporting of an
organization's financial information, including the preparation of financial statements, to
the external users of the information, such as investors, regulators and suppliers;[8] and
management accounting focuses on the measurement, analysis and reporting of
information for internal use by management.[1][8] The recording of financial transactions,
so that summaries of the financials may be presented in financial reports, is known
as bookkeeping, of which double-entry bookkeeping is the most common system.[9]
Accounting is facilitated by accounting organizations such as standard-
setters, accounting firms and professional bodies. Financial statements are usually
audited by accounting firms,[10] and are prepared in accordance with generally accepted
accounting principles (GAAP).[8] GAAP is set by various standard-setting organizations
such as the Financial Accounting Standards Board (FASB) in the United States[1] and
the Financial Reporting Council in the United Kingdom. As of 2012, "all major
economies" have plans to converge towards or adopt the International Financial
Reporting Standards (IFRS).
ACCOUNTING SOFTWARE
INTRODUCTION
Accounting software is a program that can run on a computer to track the total value
of a company. Accounting software can be downloaded to a computer or can be used
through a browser window by logging into a website.
Before computers all accounting information was stored in books called "ledgers". A
general ledger was the book where the accountant wrote down all payments that came
into a company and all payments that were made. A common term for keeping track of
this information is called "keeping the books". A bookkeeper is another term for an
accountant, but can sometimes means a person who does accounting but maybe
doesn't have as much formal education as an accountant.
Accounting software can automate many of the more menial tasks of accounting. For
example, many accounting software companies automatically pull in bank information.
Instead of having to put in the payments made and cashed received, the program does
it for you.
What accounting software does
Keeps track of customers
Keeps track of payments and income
Can help you put all your expenses and income into the right category
Invoice creation
Popular examples
Quickbooks
SAGE
PeachTree
TALLY
INTRODUCTION
Tally is powerful accounting software, which is driven by a technology called
concurrent multi-lingual accelerated technology engine. It is easy to use software
and is designed to simply complex day to day activities associated in an enterprise.
Tally provides comprehensive solution around accounting principles, inventory and data
integrity. Tally also has feature encompassing global business. Tally software comes
with easy to use interface thus making it operationally simple.
Tally accounting software provides a solution around inventory management, stock
management, invoicing, purchase order management, discounting, stock valuation
methodology, etc.
Tally accounting software also comes with drill down options, which can track every
detail of transaction. It helps in maintaining simple classification of accounts, general
ledger, accounts receivable and payable, bank reconciliation, etc.
The technology employed by tally makes data reliable and secure. Tally software
supports all the major types of file transfer protocols. This helps in connecting files
across multiple office locations.
Tally accounting software is capable of undertaking financial analysis and financial
management. It provides information around receivables turnover, cash flow statement,
activity consolidation and even branch accounting.
Tally accounting software is east to set up and simple to use. A single connection can
support multiple users. It can be easily used in conjunction with the Internet making
possible to publish global financial reports.
Tally accounting software can seamlessly connect with various Microsoft applications.
GST
INTRODUCTION
What is the Goods and Services Tax (GST)?
The goods and services tax (GST) is a value-added tax levied on most goods and
services sold for domestic consumption. The GST is paid by consumers, but it is
remitted to the government by the businesses selling the goods and services. In effect,
GST provides revenue for the government.
Breaking Down the Goods and Services Tax (GST)
The goods and services tax (GST) is an indirect federal sales tax that is applied to the
cost of certain goods and services. The business adds the GST to the price of the
product, and a customer who buys the product pays the sales price plus GST. The GST
portion is collected by the business or seller and forwarded to the government. It is also
referred to as Value-Added Tax (VAT) in some countries.
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods
and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came
into effect on 1st July 2017; Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based tax that is levied on every value
addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of
goods and services. This law has replaced many indirect tax laws that previously
existed in India.
GST is one indirect tax for the entire country.
So, before Goods and Service Tax, the pattern of tax levy was as follows:
Under the GST regime, the tax is levied at every point of sale. In the case of intra-state
sales, Central GST and State GST are charged. Inter-state sales are chargeable to
Integrated GST.