Accounting is an important aspect of running a successful business. Many myths have formed around accounting, such as it leading to higher taxes, not being needed for non-business income, or being something that can be handled by one person. In reality, precise record keeping helps determine accurate tax liability, accounting is needed for any individual income, and it requires specialized skills and knowledge. Outsourcing accounting to a firm like Choksi Tax Services can save businesses up to 30% of costs compared to maintaining an in-house department, allowing them to focus on core functions.

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2. For businessmen, accounting would draw feelings of
drudgery and waste of time. Accounting for years has been
seen as a non-value adding department for Indian
businesses.
However times have changed and so has accounting.
Information technology, value added taxation approach and
fierce competition has led to making accounting one of the
most important aspects of running a successful business.
Let’s take on some of the myths that have formed around
this subject and try to uncover the truth:
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3. 1. RECORDING KEEPING LEADS TO MORE TAXATION:
Many businesses avoid precise record keeping as they feel
that keeping a lot of records means one day we will have to
pay more taxes. In fact if you have clear record keeping it will
help you determine the exact tax liability. You can save time
in retrieving information and take faster and better
decisions.
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4. 2. I DON’T DO BUSINESS, SO I DON’T NEED ACCOUNTING :
What most professionals / investors think that as they don’t
operate a business; they don’t need accounting. Accounting
is needed to assess the tax liability for any individual having
to pay income tax and earning apart from salary.
So if you have income from investments / consulting /
rentals it would be helpful to keep proper accounts. It will
help you get loans in future and also determine your
profitability year on year.
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5. 3. I KNOW HOW TO OPERATE A COMPUTER, I CAN WRITE
MY OWN ACCOUNTS:
Accounting is not to be confused with mere data entry. A lot
of concepts of accounting have to be taken care off while
writing books of accounts.
Professional accountant can guide you with correct picture
for your business. There are a lot of rules and regulation
which are to be considered while writing books of account
and these rules keep changing.
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6. 4. ACCOUNTING HAS NO BENEFIT FOR BUSINESS:
One of common excuses that we hear for improper
accounting is that that it has not “real” benefit for business.
This can’t be further than the truth.
A vital component for decision making is past performance.
Accounting gives the past performance information to the
decision maker for taking decisions on facts and figures
rather than gut feel. In fact when a company is sold the
valuation is purely based on the accounting income
reported. So accounting is business!
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7. 5. ACCOUNTING IS A ONE MAN DEPARTMENT:
So many of small and medium businesses think that keeping
one accountant is all that they need for maintaining proper
books of account. They forget that in case they hire a low
salaried person he might not know every aspect of
accounting and in case they hire a high salaried person with
experience he might not get satisfied with job profile.
Also accounting comes with set of consultants like: Auditor,
Income Tax, VAT, Service Tax, Labour law etc.
So accounting is not a one man show.
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8. 6. FULL TIME ACCOUNTANT NEEDED EVEN FOR PART
TIME WORK:
To address the above challenge many business
owners employ a full time accountant and keep him
under employed as still consultants are needed.
There are companies like CHOKSI TAX SERVICES
who provide part time accountants at an affordable
rate. Accountant not only takes salary but needs
precious real estate space, monitoring and
guidance. A businessman may not have the time
and the skills require to recruit and retain an
accountant. Hence it is advisable to rather
outsource accounting rather than keep an under
employed costly resource.
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9. 7. REPORTS NOT REQUIRED TO KNOW HOW MUCH I EARN:
Many business people think that they know how much they
earn from their business. Reports cannot tell them more
than what they already know.
However sometimes the devil lies in the details. Sometimes
accounting reports like cash flow, product wise profitability
and branch wise profitability help businessmen know
something they don’t : how to earn more profits.
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10. 8. BOOK PROFITS HAVE NO RELATION WITH ACTUAL PROFITS:
A lot of learned people think that what profit shown in books has
no relation with actual profits. “My bank and cash balance is my
profit, whatever mentioned in books is not relevant”. With such a
mind-set people don’t invest time and money in the accounting
department which eventually results in degradation of function of
accounting from a management tool to merely a cost burden.
It is true that sometimes the accounting standards differ then the
“owners” standard of calculating costs and income. For that you
can create a separate MIS which can show the profit in the way
the decision maker wants it. Year-on-year such standards have to
be same then we can easily compare and contrast the
performance.
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11. 9. OUTSOURCING OF ACCOUNTING IS COSTLY:
The total cost of running a full-fledged accounting
department with proper consultants is all the more costly
than outsourcing.
You need to consider the cost of recruitment, training, real
estate, monitoring and overheads for the accounting
department.
Hence it is advisable to compare your costs with cost of
outsourced accounting take an informed decision.
Outsourcing your non-core function something which
successful companies have been doing since long, it may be
your time. Consider this too!
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13. Accounting is one of the most important aspect of your
business. Let professionals handle and see the difference it
makes to your business. Most of the businesses who have
outsourced accounting feel that an outsourced department
is beneficial than an in house one, which is proven by hardly
any client of CHOKSI TAX SERVICES going back to an in
house department. The total cost of running a full-fledged
accounting department with proper consultants is all the
more costly than outsourcing.
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14. The main objective of Choksi Tax Services is to provide services to
small to medium businesses so they can concentrate on their core
business functions and look towards increasing their profitability. CTS
takes care of all your accounting work and reducing the business
owner’s time spent on such time consuming but essential tasks. We
offer our professional accounting services through our team of highly
skilled and experienced accountants. By hiring our accounting
services, our clients (business owners) have saved up to 30% of costs
compared to the costs of hiring in-house staff to perform these
functions.
Finding the right accountant to suit your business needs can
sometimes be just as challenging as sorting out your accounts
yourselves. We offer a very personal service and treat all our clients
the same whether being a small proprietorship, SME enterprise or
large corporate.
ABOUT CHOKSI TAX SERVICES
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15. Reach us for more information & meet our team of
experts by calling on 1800–123–2100 (Toll Free), or
09909015009
Mail us at info@choksitax.com.
Website: www.choksitax.com
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