Requirements of Registration In income tax, FBR as a Proprietor

NTN registration Requirements

Registration Requirements for Income Tax or FBR are as follows

CNIC of Proprietor Scaned copy
Company Lwtter Head original 2 copies
Electricity Bill Paid scaned Copy
Rent Agreement
Owner of the Office CNIC photocopy

if Company is Partnership company

Partners CNIC
Partners NTN
Partnership deed Certify by Notary Public
Company Letter Head
Electricity Bill
Rent Agreement
Owner CNIC

If Company is Private Limited

Directors CNIC
Directors NTN
Article and Memorandum of the Company certify by Notary Public
Company Letter Head
Electricity Bill
Rent Agreement
Owner CNIC
form 29 form 3 form 1 or equivalent

Benefits of Outsource Accounting and Bookkeeping

Most people think outsourcing accounting and bookkeeping is only about cost-saving. But that’s NOT all. Here are the Top 10 Benefits of Outsourcing Accounting and Bookkeeping Service for CPAs, Accounting Firms and Bookkeeping Firms:

1. Outsourcing Accounting Helps Your Company / Organization Grow Faster and Stronger, Sustainably
Outsourcing accounting and bookkeeping is done for one major reason – to help you maximize your return on your core competencies likewise to save your energy, time, work force, improve your reporting skills . that you can use to grow your Business . Not only you can increase your sales and more clients by focusing on marketing but you do not have to manage the tiresome cycle of hiring, training, reviewing, managing, firing and so on. Outsourcing accounting and bookkeeping can reduce your costs by 30-50% or more.

2. You Don’t Lose Projects and New Clients
When you outsource accounting and bookkeeping, you have put your time , utilities on other tasks instead, you can get many times more work done by without having to pay for it round the clock. You don’t have to lose those big projects or new clients just because you are already too busy.

3. You Cut overhead by Paying only for Actual Work Done
When you outsource accounting and bookkeeping, invariably you will pay only for the work actually done. It means you don’t have to pay for payroll taxes, overhead, sick leaves, vacation, training, managing etc. Thus, it helps increase your profit margin significantly and at the same time, it also helps you sell more work in any given time period.

4. Outsourcing Accounting Helps You Reduce the Risks of Suddenly Losing Staff
If you are like most accounting practice owners, you would have experienced the pain of losing staff suddenly. Small and medium firms cannot afford to keep “buffer staff” to take care of such eventualities. Longer working hours and stress are common effects of such challenges. But when you outsource accounting and bookkeeping, you work with an expert and experienced team that is more reliable because of teamwork. Those team members and managers check and double check and review each other’s work, which ensures that the quality of work is as good as it can get. What’s more is that you don’t have to worry about suddenly losing a staff as the service provider has much larger teams to absorb any such staff attrition without affecting your service delivery.

5. You Improve Productivity and Work Quality
Many accountants get frustrated with the errors, the delays and review needs of their in-house staff, which is money down the drain. But you can manage an outsourced provider far more stringently to not only ensure that the work quality improves but also to ensure that you always pay only for reasonable productivity. It will grow your profit.

6. You Can Give Your Clients Better Quality Service
Outsourcing companies work for many services so their staff gets trained by doing work for multiple firms. When you outsource accounting, you get the best brains many CPAs have out there working for you. It is like many other successful CPAs training your staff. It all converts into a huge competitive advantage for you.

7. Outsourcing Accounting Empowers You to Introduce New Services to Your Clients
Even when you do not provide certain services because you do not have enough expertise or inclination to provide such services, outsourcing can help you introduce new services to your clients. It is like adding new revenue source to your mix by leveraging the collective capabilities of the service provider’s team. Many tax preparers take help of outsourced accounting and bookkeeping to provide full-service accounting experience to their clients.

8. You Can Adjust Easily to Your Business Cycles
Accounting and bookkeeping workloads are never even all the time. Outsourcing enables you to easily increase staffing or cut back quickly depending upon your business cycle. It provides you a flexibility that is difficult to achieve on your own.

9. You Earn more Without Working More Yourself
The
bottom line is that when you outsource accounting and bookkeeping, you make more money, without you having to work more yourself. First, you save big money by not having to pay for full-time or part-time wages and benefits to employees and the overhead. What’s more, you also avoid paying for lost productivity costs when you have your employees on payroll. You earn on the time and expertise of a whole team. It also gives you the work-life balance that you have always dreamt of.

10. You Increase Your Firm’s/Practice’s Valuation Due to Higher Profitability
The difference could be tens to hundreds of thousands of Dollars! When firms are bought out, the buyer carefully looks at the profitability of the firm being bought. Outsourcing accounting and bookkeeping makes your firm much more profitable than other firms which have not outsourced. It simply increases the valuation of your firm. Even when raising borrowed capital from banks, higher valuation can mean better terms for you and that too can save you thousands of Dollars.

Pransform’s accounting and bookkeeping outsourcing services help you grow your practice, profitably and reliably
Nearly 95% of CPA firms in US never grow beyond 19 staff members; 68% of the firms remain at less than 5 employees. Just one additional person at your firm can produce more than half a million Dollars in additional net profit for your practice over 25 years. But growing the firm means overheads and cash flow challenges. Instead of increasing your expense in costly overhead that hamper your cash flow, invest that money in increasing your revenue, as Pransform helps you build your highly profitable practice.

Contact Us Now to start serving more clients and making more profit

www.theaccountantplus.com or 00923002934543 , 00923332295182

how to find competent accountant for company in Karachi

How to find competent Accountant for company Accounts in Karachi Dear All this task is not much difficult to find authentic and experienced account from the Markets it is open market you can post accountant vacancy in Daily News paper , OLX Karachi, Bolee , or can get data of Professional from freelance HR companies where they charge only one salary but here you will get Qualified Accountant with market price values.

dishonor cheques has been announced crime in Pakistan

Dishonor of Cheque
most of people in Pakistan issue dishonored cheque to thier supplier or creditors or services providers or liability holder without knowing that now legally it has become crime if any issued cheques presented in clearing and become dishonor
Definition of “dishonored cheque”, which presented in the Bank same is refused of payment by the bank because of insufficient funds or it is not in order, it is called dishonestly issuing a cheque is a criminal offence in Pakistan. Dishonestly issuing a cheque is governed by section 489-F of the Pakistan Penal Code, 1860. The said section reads as follows:

489-F Dishonestly issuing a cheque: Whoever dishonestly issues a cheque towards re-payment of a loan or fulfillment of an obligation which is dishonoured on presentation shall be punishable with imprisonment which may extend to three years and with fine unless he can establish, for which the burden of proof shall rest on him, that he had made arrangements with his bank to ensure that the cheque would be honoured and that the bank was at fault in not honouring the cheque.

tax slabs salaries/ non salaries AOP s and other 2017-2018

tax slab/ tax reduce rate published in business recorder by FBR and Tax Authorities
The Federal Board of Revenue (FBR) has reduced tax rates for non-salaried individuals and Association of Persons (AoPs) as well as salaried individuals earning (between Rs400,000 to Rs500,000) through Finance Act, 2015. According to income tax circular No 2 of 2015 issued here on Saturday, the FBR has explained the reduction in tax rates for salaried/non-salaried individuals and AoPs.

To provide relief to non-salaried individuals and AoPs, particularly those earning income, the tax rates have been reduced from 10 percent to 7 percent through Finance Act, 2015 and for salaried individual earning between 400,000 to 500,000 tax rates have been reduced 5 percent to 2 percent. This relief will be available to all salaried and non-salaried individuals and AoPs who are earning more than Rs500,000. The revised tax slabs for non salaried individuals and AoPs are as under:

Tax rates for non-salaried individuals and AoPs: Where the taxable income does not exceed Rs 400,000, rate of tax would be 0 percent; where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000, tax rate would be 7 percent of the amount exceeding Rs 400,000; Where the taxable income exceeds Rs500,000 but does not exceed Rs 750,000. tax rate would be Rs 7,000 + 10 percent of the amount exceeding Rs 500,000; Where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,500,000, tax rate would be Rs 32,000 + 15 percent of the amount exceeding Rs750,000; where the taxable income exceeds Rs 1,500,000 but does not exceed Rs2,500,000, tax rate would be Rs 144,500 + 20 percent of the amount exceeding Rs1,500,000; where the taxable income exceeds Rs 2,500,000 but does not exceed Rs4,000,000, tax rate would be Rs 344,500 + 25 percent of the amount exceeding Rs2,500,000; where the taxable income exceeds Rs 4,000,000 but does not exceed Rs6,000,000, tax rate would be Rs 719,500 + 30 percent of the amount exceeding Rs 4,000,000 and where the taxable income exceeds Rs 6,000,000, tax rate would be Rs 1,319,500 + 35 percent of the amount exceeding Rs 6,000,000.

Tax rates for salaried individuals: Where the taxable income does not exceed Rs 400,000, tax rate would be 0 percent; where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000, tax rate would be 2 percent of the amount exceeding Rs 400,000; Where the taxable income exceeds Rs 500,000 but does not exceed Rs 750,000, tax rate would be Rs 2,000 + 5 percent of the amount exceeding Rs 500,000; where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,400,000, tax rate would be Rs 14,500 + 10 percent of the amount exceeding Rs750,000; where the taxable income exceeds Rs 1,400,000 but does not exceed Rs1,500,000, tax rate would be Rs 79,500 + 12.5 percent of the amount exceeding Rs1,400,000; where the taxable income exceeds Rs 1,500,000 but does not exceed Rs1,800,000, tax rate would be Rs 92,000 + 15 percent of the amount exceeding Rs1,500,000; where the taxable income exceeds Rs 1,800,000 but does not exceed Rs 2,500,000, tax rate would be Rs 137,000 + 17.5 percent of the amount exceeding Rs 1,800,000; where the taxable income exceeds Rs 2,500,000 but does not exceed Rs 3,000,000, tax rate would be Rs 259,500 + 20 percent of the amount exceeding Rs 2,500,000; where the taxable income exceeds Rs 3,000,000 but does not exceed Rs 3,500,000, tax rate would be Rs 359,500 + 22.5 percent of the amount exceeding Rs 3,000,000; where the taxable income exceeds Rs3,500,000 but does not exceed Rs 4,000,000, tax rate would be Rs 472,000 + 25 percent of the amount exceeding Rs 3,500,000; where the taxable income exceeds Rs 4,000,000 but does not exceed Rs 7,000,000, tax rate would be Rs 597,000 + 27.5 percent of the amount exceeding Rs 4,000,000; where the taxable income exceeds Rs 7,000,000, tax rate would be Rs 1,422,000 + 30 percent of the amount exceeding Rs 7,000,000.

what are key reports in Business to see on daily basis

following are the main important reports to arrange fund in company/ business
at the beginning of the day you should know as businessman that what are yours
Account receiveable
finish Goods stock
cash and Bank Positions
cheque deposit but in transit
Goods Purchased in cash but in transit
store and spare Positions

total Fund available

creditor OD balances if any and others payable
accrued expenses
cheques issued but in transit
sales in cash but goods are not issued
A financial statement is a formal record of the financial activities of a business. Financial statements are usually prepared at the end of a quarter (quarterly report) and also at the end of the year (annual report).
object of financial statement is to provide people with information about the business so that right decisions can be taken at the right time. These people include investors, creditors, debtors as well as the management. Unlike popular perception, it is not just the stakeholders who do a financial analysis using the statements; the management also indulges in such an exercise. This is done so that important business decisions can be taken for better growth and operations. Also, companies seeking to be listed on the stock exchange are required to share financial statements that are based on the accounting principles adopted by the country (for instance, NASDAQ requires financial statements that are compliant with US GAAP).

we have 5 important financial statements:
Income Statement

Basic Information from business
1 Balance Sheet
Statement of Stockholders’ Equity
Cash Flow Statement
Statement of Comprehensive Income
The value of these important financial statements and why a business of any size requires them is explained below:
1. Income Statement:
This is basic statement used to calculate the progress of any business. This statement shows both the growth in ‘top ’ as well as the ‘bottom ’: the former being the sales or revenue and the latter is the net income or net earnings of the firm. Net income is generally used as a calculation to see how successfully the company made money during the period for which the statement was prepared. Another important element that is part of the statement is the expenses made by the firm to generate the income.

On the income statement, the management should compare sales and expenses from one period to the previous period and should check if there are any big changes. For instance, if administrative costs have gone up significantly without any improvement in sales, the income statement will reveal the same and the management can look at ways to reduce expenses.

Other notable expenses that are part of the income statement are those of research and development and the interest paid on borrowed funds. If the latter is high, the company could look at other cheaper sources for funds. In this manner, the income statement can reveal trends in both sales and expenses so that the business can take decisions for better operation and growth.

2. Balance Sheet:
This statement is also known as the Statement of Financial Position as it supplies information about the assets, liabilities, and owners’ equity of the organization. While the income statement is generated for a particular period, the balance sheet is prepared as on a particular date (usually at the end of an accounting year). Hence, the balance sheet is like a financial snapshot of the firm at a particular point in time.

The elements in the statement – assets, liabilities and equities – reveal the resources the company owns and how those resources are financed. The management should compare the statement with the previous periods and check for major ups and downs in the elements. For instance, on the assets side, if inventories are growing faster than sales, the management could look for ways in which inventories can be converted into sales more quickly. In this way, the balance sheet can reveal aspects that can help better the financial position of the firm.

3. Cash Flow Statement:
This statement is also known as the Statement of Cash Flows. It provides information about the cash inflows and outflows of an organization during a period.

Cash flow could be of three different types:

Operating cash flows indicate the cash flows related to revenues and expenses of the firm.
Investing cash flows are the investments made in long-term assets
Financing cash flows are related to stockholders’ equity like payment of dividends.
Cash flows are helpful in determining money available to pay creditors. Usually an increasing cash flow from operating activities would indicate a healthy cash flow situation for the company.

4. Statement of Stockholders’ Equity:
This statement provides information about stockholders’ equity balances as listed on the balance sheet, with explanations on why these items changed. Changes in the statement usually happen due to distribution of dividends, new issuances of stock and repurchases of treasury stock. The management should keep reviewing dividend payments and retained earnings. If retained earnings are decreasing, the management should check whether it has sufficient funds for paying off its liabilities.

5. Statement of Comprehensive Income:
This statement provides information about comprehensive income which cannot be included in the income statement. Items such as unrealized gains/losses, pension, investments and foreign currency transactions are part of this statement. This statement would help the management determine possible sources of cash in future.

As is evident from the above article, accurate financial statements and financial reporting can give management a number of insights for improving operations, increasing income, reducing expenses, and ensuring compliance. Management should make an effort to note trends in sales, expenses and other important aspects in order to improve operations and set the business on the path to profitability.

what is the financial Management

what is the Financial Management

Financial management related with the acquisition, financing , and management of assets with some overall goal in planing so that the decision step of financial management can be divided into three highlighted areas ,
investment financing and asset management decision.from the book ” Fundamental of Financial Management”