Registration Certificate

Registration Certificate 1. Goods and Services Tax (GST) Registration 2. Professional Tax Registration. 3. Import Export Code (IEC) and Export License 4. Trademark Registration 5. Copyright Registration and Patent Registration 6. ISO Certification 7. NOC from Fire Department 8. Real Estate Regulatory Authority (RERA) Registration 9. Udyam Certificate (MSME)

Registrations License

Registrations License 1. Dangerous Goods License 2. Labour License 3. Security Agency License 4. Trade License 5. Shops and Establishment License 6. Environmental Clearance 7. Food Safety and Standards Authority of India (FSSAI) License

Preparation of Financial Statements

This is the heading

India’s highest-rated
legal tax and compliance platform.

50,000+ businesses incorporated since 2011

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

John DoeCEO

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

John DoeCEO

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

John DoeCEO

Get ₹1000 cashback* upon your incorporation with our banking partners offer. T&C*

Banking partners

Vakilsearch’s incorporation experts register over 1500 companies every month.

₹1499

₹ 999 + Govt. Fee (to be paid later)

Expert assisted process
Your company name is reserved in just 2 - 4 days
DSC in just 4 - 7 days
SPICe+ form filing in 14 days*
Incorporation Certificate in 14 - 21 days
Company PAN+TAN
DIN for directors

₹2999

₹ 1,499 + Govt. Fee (to be paid later)

Expert assisted process
Your company name is reserved in just 2 - 4 days
DSC in just 4 - 7 days
SPICe+ form filing in 14 days*
Incorporation Certificate in 14 - 21 days
Company PAN+TAN
DIN for directors

Popular

₹24999

₹ 14,999 + Govt. Fee (to be paid later)

Expert assisted process
Your company name is reserved in just 2 - 4 days
DSC in just 4 - 7 days
SPICe+ form filing in 14 days*
Incorporation Certificate in 14 - 21 days
Company PAN+TAN
DIN for directors

Not sure about the packages?

Talk to our experts to kickstart your business registration process.

Companies Act, 2013 (India)

Section 129 of companies act 2013, provides for preparation of financial statements.

The preparation of financial statements is the process of creating a set of reports that summarize the financial activities and position of a business over a specific period. These statements provide crucial insights into a company’s performance, financial health, and profitability, helping business owners, investors, and regulators make informed decisions.

The preparation of financial statements is a crucial aspect of business accounting, providing a clear snapshot of a company’s financial health. Financial statements are used by stakeholders such as investors, creditors, and management to make informed decisions. The process involves collecting, organizing, and presenting financial data in a standardized format.

Improved Financial Transparency

Financial statements provide a clear and transparent view of the company’s financial position, helping stakeholders understand the financial health of the business.

Informed Decision Making

They provide critical data for management to make well-informed decisions regarding budgeting, investments, and future business strategies.

Compliance with Regulations

Preparing financial statements ensures compliance with accounting standards and regulations, such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), and tax laws.

Attracting Investors and Lenders

Well-prepared financial statements demonstrate the company’s financial stability, making it easier to attract potential investors or secure loans from financial institutions.

Tracking Business Performance

They allow businesses to track their performance over time, identify trends, and monitor profitability, helping to pinpoint areas for improvement.

Audit and Tax Filing Support

Properly prepared financial statements simplify the audit process and help in accurate tax filings, ensuring that businesses meet their tax obligations while avoiding penalties.

Eligibility Criteria for Preparation of Financial Statements

The preparation of financial statements is primarily based on the nature and size of the business and the applicable accounting standards. Here’s an overview of the eligibility criteria:

Business Type and Size
- All businesses, whether small, medium, or large, are required to prepare financial statements, but the complexity and detail may vary based on the size and type of the business. Larger corporations may need more detailed and comprehensive reports (e.g., balance sheets, income statements, and cash flow statements).
Legal Structure of the Business
- Companies, partnerships, and sole proprietorships all need to prepare financial statements, though the specific formats and requirements may differ. For example, private limited companies may have stricter reporting requirements compared to sole proprietorships.
Revenue Threshold
- Businesses that meet a certain revenue threshold (as defined by local accounting standards or tax authorities) may be required to prepare detailed financial statements. Small businesses may have simpler reporting requirements.
Accounting Standards
- The business must follow the relevant accounting standards such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), depending on the country or region in which it operates.
Compliance with Tax Laws
- Businesses must prepare financial statements to comply with local tax laws and regulatory requirements. These statements are often required for tax filing purposes.
Company Registration
- Registered businesses (e.g., corporations or limited liability companies) are typically required by law to prepare annual financial statements. Unregistered or informal businesses may not have a legal obligation, but it’s still recommended for tracking financial health.
Auditing Requirement
- If the business is required to be audited (depending on the size or regulatory requirements), then it must prepare financial statements that meet the criteria for audit purposes.
Internal Requirements
- Larger organizations or businesses with investors, stakeholders, or regulatory oversight must prepare these statements to maintain proper internal financial control and accountability.

Checklist for Preparation of Financial Statements

Determine the Accounting Period

Establish the period for which financial statements will be prepared (typically monthly, quarterly, or annually).

Collect Financial Data

Gather all necessary financial data, including:
- - Bank statements
  - Sales and purchase invoices
  - Receipts for expenses
  - Payroll records
  - Loan and debt information
  - Tax records

Classify Transactions

Organize all financial transactions into relevant categories, such as:

Assets (current and non-current)
Liabilities (current and long-term)
Equity
Income
Expenses

Prepare the Trial Balance

Verify the accuracy of your financial records by preparing a trial balance, which ensures the sum of debits equals the sum of credits.

Prepare the Income Statement (Profit & Loss Statement)

List all revenue and expense accounts to determine the net profit or loss for the accounting period.

Prepare the Balance Sheet

Summarize assets, liabilities, and equity to show the company’s financial position at a specific point in time.

Prepare the Cash Flow Statement

Track cash inflows and outflows over the accounting period to understand the liquidity position of the business.

Depreciation and Amortization

Calculate and include depreciation for tangible assets and amortization for intangible assets as per accounting standards.

Tax Calculation

Ensure all applicable taxes (income tax, VAT, GST, etc.) are accounted for, and provisions are made for any outstanding tax liabilities.

Reconcile Bank Statements

Compare financial records with bank statements to ensure that all cash transactions are properly recorded.

Review for Compliance with Accounting Standards

Ensure the financial statements comply with applicable accounting principles (e.g., GAAP or IFRS) and legal requirements.

Audit or Review (if applicable)

If required, have the financial statements audited or reviewed by an external auditor for accuracy and compliance.

Necessary Documents for Preparation of Financial Statements

Bank Statements

All business bank statements for the relevant accounting period to reconcile cash flow and verify transactions.

Sales Invoices

Copies of all sales invoices issued during the accounting period to calculate total revenue.

Purchase Invoices

Copies of purchase invoices for goods or services bought to track expenses and inventory.

Receipts and Expense Records

Documentation of all business-related expenses (e.g., utility bills, rent receipts, travel expenses) to accurately track costs.

Payroll Records

Information on employee wages, salaries, bonuses, and other benefits, including tax withholdings, for accurate payroll reporting.

Loan and Debt Agreements

Copies of any loan agreements or credit facilities to record liabilities and interest expenses.

Tax Documents

Tax returns, tax payments, and tax liabilities (such as VAT, GST, and income tax) to ensure compliance and accurate tax reporting.

Inventory Records

Records of inventory purchases and sales, including inventory valuations, to calculate cost of goods sold (COGS) and stock levels.

Fixed Asset Registers

A detailed list of fixed assets (e.g., machinery, equipment, buildings) along with their acquisition cost, depreciation schedules, and current value.

Capital Contribution or Equity Documents

Documents detailing any capital investments or equity changes, including shareholder contributions or stock issuances.

Previous Financial Statements

The prior period’s financial statements (balance sheet, income statement, etc.) to facilitate comparison and analysis of performance.

Bank Reconciliation Statements

Reconciled bank statements to match the business’s cash balance with the bank’s records.

Accounting Journal Entries

A record of all journal entries made during the accounting period, providing a detailed view of financial transactions.

Accounting Software Reports (if applicable)

If using accounting software, reports generated by the system (e.g., trial balance, income statement, balance sheet) to support the financial statements.

Investments Records

Information about any investments or financial instruments held by the business, including purchase details, returns, and current valuation.

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:

Affidavit on stamp paper: a declaration by all subscribers affirming their intention to become shareholders of the company
Office address proof like the Rental Agreement or Ownership Deed
Electricity bill, water bill and other utility bills of the last two months
Copy of approval if required
Trademark registration details
NOC from property owner
Proof of identity and address

B. Required Documents For Foreign Nationals serving as directors/Shareholders

Passport: Proof of identity
Address proof: Accepted documents include a driving license, residence card, bank statement, or government-issued identification with a valid address.

Types of Preparation of Financial Statements

Income Statement (Profit and Loss Statement)

This statement summarizes the company’s revenues, costs, and expenses to determine the net profit or loss over a specific period.

Balance Sheet

The balance sheet provides a snapshot of a company’s financial position at a specific point in time, listing assets, liabilities, and equity.

Cash Flow Statement

This statement shows the company’s cash inflows and outflows over a period, highlighting the liquidity and cash management of the business.

Characteristics of Preparation of Financial Statements

Accuracy and Completeness

Financial statements must be accurate, reflecting all business transactions and providing a true and fair view of the company’s financial position.

Consistency

Financial statements should follow consistent accounting policies and principles over time, allowing for comparability between periods.

Compliance with Standards

They must adhere to the relevant accounting standards, such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), ensuring legal and regulatory compliance.

Objectivity

The preparation process should be based on objective data and verifiable facts, avoiding bias in recording financial transactions.

Timeliness

Financial statements should be prepared and submitted within the stipulated deadlines to provide up-to-date information to stakeholders.

Clarity and Transparency

Financial statements should be clear, easy to understand, and transparent, providing necessary details without unnecessary complexity.

Relevance

The information provided should be relevant for decision-making, helping users such as management, investors, and creditors make informed decisions.

Reflecting Business Performance

They should accurately reflect the company’s operational performance, financial health, and liquidity, offering insights into profitability and risk.

Internal Controls

The process of preparing financial statements should be backed by internal controls to ensure accuracy and prevent errors or fraud.

Detailed Supporting Information

Adequate notes and explanations should accompany the financial statements, offering additional context and details to help users understand the numbers presented.

How to Register for FSSAI License

Set Up Accounting System
- Register your business with the appropriate tax authorities (e.g., GST or Income Tax Department in India).
- Choose an accounting method (accrual or cash-based accounting).
- Implement an accounting software or manual system to track transactions (e.g., QuickBooks, Tally, or Xero).
Maintain Accurate Financial Records
- Keep records of all financial transactions, including sales, purchases, expenses, and other financial activities.
- Regularly update your general ledger with all entries.
Hire an Accountant or Financial Professional
- If you lack the expertise, hire a certified accountant to ensure the proper preparation of your financial statements, as they are often required for tax filings and business analysis.
- In some cases, you may need to register your accountant or accounting firm with regulatory authorities, depending on local regulations.
Adhere to Accounting Standards
- Ensure that your financial statements follow the relevant accounting standards such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards), based on your country’s regulations.
Prepare Financial Statements
- Use the data collected from your accounting system to prepare the following:
  - Income Statement (Profit & Loss Statement)
  - Balance Sheet
  - Cash Flow Statement
- Make sure they are accurate, compliant with regulations, and ready for submission to relevant authorities or stakeholders.
Compliance and Filing
- File your financial statements with government or regulatory bodies (such as tax authorities, if required).
- Ensure that your financial statements are compliant with local business regulations for tax filings, investor reporting, and business continuity.
Audit (If Applicable)
- Some businesses may be required to get their financial statements audited by a third-party auditor for verification and compliance, especially for public or large companies.

Company Registration

International Company Setup

Registration Certificate

Registrations License

Return Filing Services

Accounting Services

We are the Best

Other Services

Fundraising

NGO

Property & Personal

Lawyers & Experts

Preparation of Financial Statements

Guaranteed application submission in 7 days or your money-back T&C

Register Your Company Today

This is the heading

50,000+ businesses incorporated since 2011

Get ₹1000 cashback* upon your incorporation with our banking partners offer. T&C*

Banking partners

Standard

Fastrack

Premium

Not sure about the packages?

Companies Act, 2013 (India)

Improved Financial Transparency

Informed Decision Making

Compliance with Regulations

Attracting Investors and Lenders

Tracking Business Performance

Audit and Tax Filing Support

Eligibility Criteria for Preparation of Financial Statements

Checklist for Preparation of Financial Statements

Necessary Documents for Preparation of Financial Statements

Documents necessary for filing SPICe+ form (INC-32) for the registration of a private limited company are outlined as follows:

A. For Indian Nationals serving as directors and subscribers:

B. Required Documents For Foreign Nationals serving as directors/Shareholders

Types of Preparation of Financial Statements

Income Statement (Profit and Loss Statement)

Balance Sheet

Cash Flow Statement

Characteristics of Preparation of Financial Statements

How to Register for FSSAI License

Quick Links

Useful Links

Visit Us

Get Free Consultancy For All Services.