Accounting Manual

NEUSOURCE AUDIT MANUAL

NeuSource Accounting Manual
(Volume 1)

A Comprehensive Set of Procedure Manual
To guide Neusource Account Executives
To carry out accounting of clients in
Planned manner and delivering
Quality Output

Compiled by: Team Neusource

1|Page

copyright 2013 ©www.neusourceindia.com


Preface
The Neusource Accounting Manual is a comprehensive set of the policies and procedures
for carrying out different assignments and activities made with an intent to execute by
neusource executives deputed to perform accounting assignments of neusource clients.
These financial policy and procedure are expected to be followed by all staffs without
default. It also provides guidelines that neusource will use to administer the output of clients
assignments, hence each staff should try to get versed with the correct procedure to follow.
Required content of these policies can also be found uploaded and attached at neusource
workflow with each activity assigned; therefore all executive staffs are expected to perform
the assigned activity in accordance with written procedure & guidelines.
Neusource management will keep all financial policies current and relevant. From time to
time it will be necessary to modify and amend some sections of the policies and procedures,
or to add new procedures.
Any suggestions, recommendations or feedback on the policies and procedures in this
manual are welcome. You can mail all your feedback & suggestions to
jai@neusourceindia.com; for better understanding or clearing your doubts you can ask your
immediate manager, and if your query is unsolved or you are having any problem with
regard to getting proper support from your manager; you may freely write to
hemant@neusourceindia.com. Your every communication shall be counted for assessment
of your performance.
HR Department at neusource is also closely involved in administering the usage of these
procedures and also a separate ‘Quality Control Team’ is rechecking the closed activities for
their proper execution. As an administrative setup we have the following authorities working
on the manual.

Sl. No.

Name of Person-in-

Admin Resp.

Contact id

Content

jai@neusourceindia.com

charge

1

Jai Sethi

2|Page


2

Hemant Gupta

Co-ordination

hemant@neusourceindia.com

3

Neha Sinha

Complaint

neha@neusourceindia.com

4

Rakesh Kumar

Training

reakesh@neusourceindia.com

Work flow Diagram

Client

•Handovers the
Accountancy
Project to
Neusource

Sr.
Manager

•Create
Assignment

Manger

•Create Activity

Executive

•Execute the
Activity
According to
these SOPs

Quality
Control

•Execute QC
process
According to
these SOPs

These policies and procedures apply to all employees. Also note that enclosures are part

of SOPs to which they are attached.

3|Page



Index
Sl. No.

Content

Page No.

1

Assignment Summary

6

2

Detailed SOPs

8

3

Review Procedure

795

4

Epilogue

797

4|Page



Assignment Summary
Sl.

Assignment Category

Assignment Particulars

Count of

Code

No.

Assignment

Activities

1

Initial Setup

Client Start-up Activities

NSOP/IS/1

10

2

Initial Setup

Software setup

NSOP/IS/2

23

3

Initial Setup

Master Creation & Setup

NSOP/IS/3

9

4

Treasury

Cash Management

NSOP/TS/1

6

5

Treasury

Bank Management

NSOP/TS/2

34

6

Accounts Payable

Data Entry AP

NSOP/AP/1

77

7

Accounts Payable

Creditors Management

NSOP/AP/2

6

8

Accounts Payable

TDS Compliances

NSOP/AP/3

10

9

Accounts Payable

PF Compliances

NSOP/AP/4

7

10

Accounts Payable

ESI Compliances

NSOP/AP/5

7

11

Accounts Receivable

Inter Company Transfers

NSOP/AR/1

2

12

Accounts Receivable

Data Entry AR

NSOP/AR/2

30

13

Accounts Receivable

Debtors Management

NSOP/AR/3

5

14

Accounts Receivable

Excise Compliances

NSOP/AR/4

13

15

Accounts Receivable

Service Tax Compliances

NSOP/AR/5

8

16

Accounts Receivable

VAT Compliances

NSOP/AR/6

22

5|Page


17

Accounts Receivable

TCS Compliances

NSOP/AR/7

8

18

Closing

Monthly MIS

NSOP/CL/1

1

19

Closing

Annual Book Closure

NSOP/CL/2

1

20

Inventory Management

Inventory Entries

NSOP/IM/1

17

21

Secretarial Compliances

Maintenance of Statutory Records (Company)

NSOP/SC/1

1

22

System Maintenance

Tally Maintenance

NSOP/SM/1

7

23

System Maintenance

Miscellaneous Jobs assigned by client

NSOP/SM/2

5

24

System Maintenance

Miscellaneous Jobs assigned by Neusource

NSOP/SM/3

0

25

System Maintenance

Order Processing

NSOP/SM/4

8

26

Visits

Client Visit

NSOP/VS/1

1

27

Income Tax

Income Tax Notice Reply

NSOP/IT/1

1

28

Income Tax

Income Tax Scrutiny Case Preparation

NSOP/IT/2

1

29

Income Tax

Income Tax Audit Preparation

NSOP/IT/3

1

30

Income Tax

Filing of ITR-1

NSOP/IT/4

1

31

Income Tax

Filing of ITR-2

NSOP/IT/5

1

32

Income Tax

Filing of ITR-3

NSOP/IT/6

1

33

Income Tax

Filing of ITR-4

NSOP/IT/7

1

34

Income Tax

Filing of ITR-5

NSOP/IT/8

1

35

Income Tax

Filing of ITR-6

NSOP/IT/9

1

36

Income Tax

Filing of ITR-7

NSOP/IT/10

1

37

Income Tax

Filing of ITR-4S

NSOP/IT/11

1

6|Page


38

Income Tax

Income Tax Apeal

NSOP/IT/12

1

39

Income Tax

Income Tax ITAT

NSOP/IT/13

1

40

Income Tax

Income Tax Refund

NSOP/IT/14

1

41

Income Tax

15 CA/CB

NSOP/IT/15

1

42

Income Tax

Computation Of Advance tax

NSOP/IT/16

1

43

Income Tax

Revision of ITR

NSOP/IT/17

1

44

Income Tax

PAN Surrender

NSOP/IT/18

1

45

Income Tax

Certification

NSOP/IT/19

0

46

Income Tax

Tax Audit Report

NSOP/IT/20

1

47

Registration

Partnership Registration

NSOP/RG/1

1

48

Registration

Company Registration

NSOP/RG/2

1

49

Registration

TAN Registration

NSOP/RG/3

1

50

Registration

PAN Registration

NSOP/RG/4

1

51

Registration

80 G Registration

NSOP/RG/5

1

52

Registration

Service Tax Registration

NSOP/RG/6

1

53

Registration

Luxury Tax Registration

NSOP/RG/7

1

54

Registration

Trust Registration

NSOP/RG/8

1

55

Registration

Society Registration

NSOP/RG/9

1

56

Registration

HUF Formation

NSOP/RG/10

1

57

Registration

DIN Registration

NSOP/RG/11

1

58

Registration

Trade mark Registration

NSOP/RG/12

1

7|Page


59

Registration

Excise Registration

NSOP/RG/13

1

60

Registration

Partnership dissolution

NSOP/RG/14

1

61

Registration

Supplementary Deed for change of Partner

NSOP/RG/15

1

62

Registration

IEC Code Registration

NSOP/RG/16

1

63

Registration

Shop & Establishment Registration

NSOP/RG/17

1

64

Registration

PF Registration

NSOP/RG/18

1

65

Registration

ESI Registration

NSOP/RG/19

1

66

ROC

Share Transfer

NSOP/RC/1

1

67

ROC

State Change in ROC

NSOP/RC/2

1

68

ROC

Address Change In ROC

NSOP/RC/3

1

69

ROC

Increase in Authorised Capital

NSOP/RC/4

1

70

ROC

Allotment of Shares

NSOP/RC/5

1

71

ROC

Change in MOA

NSOP/RC/6

1

72

ROC

Change of Director

NSOP/RC/7

1

73

ROC

Closer of Company

NSOP/RC/8

1

74

ROC

ROC refund

NSOP/RC/9

1

75

ROC

Form 23 B filing

NSOP/RC/10

1

76

ROC

ROC Filing

NSOP/RC/11

1

77

ROC

Company Audit Report

NSOP/RC/12

1

Total Activity Counts

8|Page


368


Detailed SOPs

Category:

Initial Setup

Assignment:

Client Start-up Activities

Assignment Code:

NSOP/IS/1

Sl. No.

Activities

SOP No.

1

Preparation of Fixed Expenses Chart & Display

NSOP/IS/1 # 01

2

Preparation of Statutory Chart & Display

NSOP/IS/1 # 02

3

Preparation of File Index & Display

NSOP/IS/1 # 03

4

Preparation of list of Register maintained & Display

NSOP/IS/1 # 04

5

Preparation of Organogram & Display

NSOP/IS/1 # 05

6

Preparation of list of Previous pending Jobs

NSOP/IS/1 # 06

7

Preparation of input & Output Documents lists & Display

NSOP/IS/1 # 07

8

Client Start-up Kit Delivery & Implementation

NSOP/IS/1 # 08

9

Preparation of Critical Point of Control & Display

NSOP/IS/1 # 09

10

Preparation of Other Important Details

NSOP/IS/1 # 10

9|Page



Activity Title

Initial Setup

SOP Title

Preparation of Fixed Expenses Chart & Display

SOP No.

NSOP/IS/1 # 01

Version #

1

Definition: In the operations of business fixed expenses are those expenses which do
not fluctuate with changes in the production activity level or sales level and have to be
paid regularly in a business. Some examples of fixed expenses are rent or lease, loan
EMIs, insurance premiums, staff salary, various taxes, telephone, electricity bills and
other monthly bills.

Objective: The basic objective of doing this activity is to avoid the delay in
payment by missing the date of payment and thereby avoiding the consequences
of late payment, interests, penalty & disruption of business entity.
Procedure:


To perform this activity Executive is suggested to gather information from the
financial statements of previous periods and may collect the information & data
from available accounting files, account books & all other possible sources.



Chart of fixed expenses shall be prepared in the format given hereunder as
enclosure 1 of this SOP.



Chart once prepared must be cross signed by Assigned Relationship Manager
and Client/ owner.



A copy of the same chart must be displayed prominently near the seat of
Executive.



This chart must be kept in a separate file named as “Master Documents”.

10 | P a g e


Impact of Non Compliance on person responsible:


The Executive is suggested to intimate to the Relationship Manager about the
performance of activity and in case of failure on the part of Executive to identify
or notify the Relationship Manager an adverse entry for continuously 1 month or
7 days in case the error notified by client, shall be marked by HR in his/her file
noting; if reported by Relationship Manager in his visit report.



Relationship Manager shall at each visit mark in the visit diary <kept with the
Executive to monitor the progress in each visit> that chart activities cross
checked and no new activity found as missing.



In case of any new fixed expense identified to be added in the chart the
Executive shall notify the detail to assigned Relationship Manager. For any
future change this activity shall not be created next time, hence the Relationship
Manager shall during his next visit shall review the activity and take a note of
this activity in his visit report.



In case of failure on the part of Relationship Manager for not reviewing the
activity for 2 consecutive visits after due intimation and case reported or brought
to notice by any means, Relationship Manager shall get adverse entry marked
by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the
activity as a proof of closure of activity.

Enclosure - 1
Format of Chart
Heading

Sub Heading

Credit Cards

Account No.

Amount

Day

APR To MAR

HDFC
Citi Bank
ICICI
Kotak

11 | P a g e


SBI
Loan-EMIs

Personal Loan EMI
Auto Loan EMI
Term Loan EMI

Rent or lease

Factory Rent
Office Rent
Godown Rent
Guest House Rent

Telephone

Telephone No.1
Telephone No.2
Telephone No.3
Telephone No.4
Telephone No.5
Telephone No.6

Electricity

Factory Electricity
Office Electricity
Godown Electricity
Guest House
Electricity

Insurance

LIC of Directors
Factory Insurance

12 | P a g e


Health Insurance
Vehicle Insurance
ESI
Taxes

VAT
Service Tax
Excise
Income Tax
TDS
TCS
PF

Fixed Monthly

Consultant Fees

Bill
Security Bill
Water Bill
Courier Bill
Fright Bill
Fuel bill
Staff Salaries

Managers
Executives

---- End of Document (NSOP/IS/1 # 01) ----

13 | P a g e



Activity Title

Initial Setup

SOP Title

Preparation of Statutory Chart & Display

SOP No.

NSOP/IS/1 # 02

Version #

1

Definition: Statutory compliances are those procedures which are mandatory to follow
or those compliances which are required to be fulfilled, mentioned in any statue, law or
regulation. Statutory Compliances shall cover all informative filings/reporting, bank
reporting responsibility, tax payment & periodical returns etc.

Objective: The basic objective of doing this activity is to avoid the non-compliance of
legal requirements and will result in elimination of consequences of non-compliance.
Further this activity will assist to remind the due dates of government dues which will
eliminates non-payment by missing the due date of payment and thereby avoiding the
consequences of late payment, interests, penalty, notices and other proceedings.

Procedure:


To perform this activity Executive is suggested to gather information from the
financial statements of previous periods and may collect the information & data from
available accounting files, account books & all other possible sources.



Chart of statutory compliances shall be prepared in the format given hereunder as
enclosure 1 of this SOP.



Chart once prepared must be cross signed by Assigned Relationship Manager and
client/owner.



A copy of the same chart must be displayed prominently near the seat of Executive.

This chart must be kept in a separate file named as “Master Documents”.

14 | P a g e




performance of activity and in case of failure on the part of Executive to identify or
notify the Manager an adverse entry for continuously 1 month or 7 days in case the
error notified by client, shall be marked by HR in his/her file noting; if reported by
manager in his visit report.



Manager shall at each visit mark in the visit diary <kept with the Executive to monitor
the progress in each visit> that chart activities cross checked and no new activity
found as missing.



In case of any new fixed expense identified to be added in the chart the Executive
shall notify the detail to assigned Manager. For any future change this activity shall
not be created next time, hence the Manager shall during his next visit shall review
the activity and take a note of this activity in his visit report.



In case of failure on the part of Manager for not reviewing the activity for 2
consecutive visits after due intimation and case reported or brought to notice by any
means, Manager shall get adverse entry marked by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the
activity as a proof of closure of activity.

Enclosure - 1
Format of Chart

Particular

Dept. Due Date and

Preceding

frequency

April (Actual Date)

F. Y. Status

Sales Tax Payment Challan

INDIRECT TAXES

Sales Tax Return
Excise Duty Challan/
Deposited in PLA
Excise Duty Return

15 | P a g e


Custom Duty Payment
Challan
Custom Duty
Return(BOE/BOL)
Service Tax Challan
Service Tax Return
Income Tax Challan
Income Tax Return
TDS Challan (Other than
Salary)
TDS Challan (Salary)
TDS Return
(Other than Salary)
TDS Return (Salary)
TCS Return

DIRECT TAXES

Advance Tax

15June, 15Sept,
15Dec, 15March

Wealth Tax

---- End of Document (NSOP/IS/1 # 02) ----

16 | P a g e


Activity Title

Initial Setup

SOP Title

Preparation of File Index & Display

SOP No.

NSOP/IS/1 # 03

Version #

1

Definition: Filing is retention and arrangement of necessary documents and records of
business entity in a logical manner which assists in efficient and timely access to the
required business document.

Objective: The basic objective of doing this activity is to avoid individual desk file, reduce
duplicity, unnecessary record retention and to draft a method for filing, retaining and
disposing of business records, which will assist in efficient access of business documents.

Procedure:


All file cabinets, file boxes and files should follow logical order such as left to right,
top to bottom, newest to oldest and their names/numbers should be in standard
format.



Files relating to common category should be placed in same cabinet/rack and the
category and cabinet name/number should also be mentioned on every file. And
files relating to particular category can be differentiated by file colour also.



Name and/or number of files, file boxes and file cabinets should always be
mentioned on front side.



Extra care should be used sensitive or secret information and should be kept in
secure area.



Access of all files should be limited to those who has need to know that particular
information.

17 | P a g e


Files are suggested to be categorised in:
 Super Master Files: Those files which contains documents relating to non-recurring
issues like registration of company, registration with various government/tax
authorities.
 Master Files: Those files which contains master document relating to periodical
issues like return filed with various tax authorities, periodical financial statements,
monthly/quarterly reports etc.

 Voucher Files: Those files which contain documents as per voucher type.


Summary of documentation shall be prepared as chart in the format given
hereunder as enclosure 1 of this SOP.



Chart once prepared must be cross signed by Assigned Relationship Manager
and Client/ owner.



This chart must be kept in a separate file named as “Master Documents”. A
copy of the same chart must be displayed prominently near the seat of
Executive.



performance of activity and in case of failure on the part of Executive to identify or
notify the Manager an adverse entry for continuously 1 month or 7 days in case the
error notified by client, shall be marked by HR in his/her file noting; if reported by
manager in his visit report.



Manager shall at each visit mark in the visit diary <kept with the Executive to monitor
the progress in each visit> that chart activities cross checked and no new activity
found as missing.



For any future change this activity shall not be created next time, hence the Manager
shall during his next visit shall review the activity and take a note of this activity in his
visit report.



In case of failure on the part of Manager for not reviewing the activity for 2
consecutive visits after due intimation and case reported or brought to notice by any
means, Manager shall get adverse entry marked by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the activity
as a proof of closure of activity.
18 | P a g e


Enclosure - 1
Format of Chart
SUPER MASTER FILES
File Name & No.

Rack No.

Location

Department Concern

Access Authority

MASTER FILES
Period Covered
File Name & No.

Rack No.

Location

From

To

Access Authority

VOUCHER FILES
Period Covered
Voucher

File Name &

Type

No.

Rack No.

Location

From

To

Access Authority

To receive the full version of this Manual
Send your request
By submitting your requirement on our site in
‘Get in Touch’ section or
Send your mail at

jai@neusourceindia.com
19 | P a g e


Accounting Manual

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (17)

Similar to Accounting Manual

Similar to Accounting Manual (20)

More from CA Hemant Gupta

More from CA Hemant Gupta (20)

Recently uploaded

Recently uploaded (20)

Accounting Manual