What is Accounting?
Accounting, or bookkeeping, is the systematic recording, classification and summarising of a business’s financial transactions so that financial statements give a true and fair view of its affairs. For companies, the Companies Act requires proper books of account covering sales, purchases, receipts, payments, assets, liabilities, branch records and, where notified, cost records.
Books must be kept on the accrual basis with double-entry. They must be kept at the registered office or another place in India and be open to inspection by any director. The Board nominates a responsible person, such as the managing director, whole-time director, CFO or another officer, to ensure proper accounts. Electronic books must be backed up on servers physically located in India.
