Overview
How a small business can keep clean books that make GST, tax and audit easy.
Step-by-step
- Separate business and personal bank accounts.
- Record every sale, purchase and expense with a supporting document.
- Choose accounting software that suits your size and GST needs.
- Reconcile bank statements monthly.
- Review receivables and payables, and follow up on overdue dues.
- Prepare monthly summaries and a year-end trial balance for your accountant.
- Back up your data and store invoices for the period required by law.
Documents you will usually need
- Invoices and bills
- Bank and loan statements
- Cash and petty cash vouchers
- Payroll records
Practical tips
- A weekly 30-minute update is better than a yearly clean-up.
- Tag GST on every transaction from day one.
- Ask your accountant for a monthly MIS.
Official source: ICAI
General information for awareness only. Rules, forms and due dates change; confirm on the official portal or consult a professional before acting.