![\"9](\"https:\/\/corientbs.com\/in\/wp-content\/uploads\/2026\/04\/Finance-and-accounting-process-1-1024x576.webp\")
<\/figure>\n\n\n\nStep 1: Build It Around Your Business \u2014 Not Someone Else’s<\/h2>\n\n\n\n
Here is the most common mistake: adopting a standard accounting framework that was designed for a different kind of company.<\/p>\n\n\n\n
A manufacturer’s finance and accounting process needs cost accounting and inventory valuation embedded from the start. A conglomerate with group entities needs intercompany accounting and transfer pricing baked in. A listed company is legally required to apply Ind AS \u2014 and that changes how revenue, leases, and taxes actually appear on the books.<\/p>\n\n\n\n
Before you pick a tool or write a policy, spend time mapping where your process is genuinely under strain. That is the only honest place to begin.<\/p>\n\n\n\n
Step 2: Design a Chart of Accounts That Fits Indian Law<\/h2>\n\n\n\n
Think of the Chart of Accounts as the skeleton of your entire finance and accounting process. Every report, every GST reconciliation, every statutory filing, is only as clean as the structure underneath it.<\/p>\n\n\n\n
<\/p>\n\n\n\n For Indian enterprises, that structure must include:<\/p>\n\n\n\n Getting this right early means your team spends less time fixing errors and more time reading the business.<\/p>\n\n\n\n Your accounting software is the system your enterprise depends on to meet its obligations every single month. It is not a back-office detail.<\/p>\n\n\n\n SAP S\/4HANA and Oracle NetSuite are the right fit for large, complex operations, multi-entity consolidation, real-time analytics, global compliance. TallyPrime is the most trusted choice for Indian regulatory depth, GST, TDS, statutory reporting, without unnecessary complexity.<\/p>\n\n\n\n One thing no platform can be without: e-invoicing integration. Since October 2022, e-invoicing under GST is mandatory for any business with annual turnover above \u20b95 crore. Every B2B invoice must be generated through the GSTN portal<\/a> with a valid IRN and QR code. If you’re not compliant, your buyer loses their ITC claim, and you lose their goodwill.<\/p>\n\n\n\n Bookkeeping is not glamorous. It is also the one thing that prevents your month-end close from becoming a crisis.<\/p>\n\n\n\n Every invoice, payment, transfer, and expense needs to land in the general ledger accurately and on time. For high-volume teams, automation is the only realistic answer, configure your system for bank auto-capture, three-way PO matching, and automatic discrepancy flagging.<\/p>\n\n\n\n Run bank reconciliation every week without exception. Problems caught weekly take minutes to fix. Problems caught at month-end take days.<\/p>\n\n\n\n India’s compliance calendar moves fast. A single missed deadline in your finance and accounting process, one late GSTR-3B, one unpaid TDS instalment, can trigger interest, penalties, or an ITC reversal that takes months to unwind.<\/p>\n\n\n\n GST: File GSTR-1 and GSTR-3B monthly. Reconcile ITC against GSTR-2B every month without fail. Unreconciled ITC is the most consistent reason Indian enterprises receive GST notices.<\/p>\n\n\n\n Pay advance tax on 15 June, 15 September, 15 December, and 15 March. Deduct and remit TDS by the 7th of each following month. Shortfalls and delays attract interest under Sections 234B, 234C, and 201.<\/p>\n\n\n\n Any enterprise with international group transactions must maintain a transfer pricing study and file Form 3CEB, certified by a Chartered Accountant. Transfer pricing disputes are among the most expensive in Indian tax litigation \u2014 robust documentation is the only protection.<\/p>\n\n\n\n The MSMED Act requires payment to MSME-registered suppliers within 45 days. Overdue amounts attract compound interest at three times the RBI bank rate, and the expense is disallowed under Section 43B, which directly increases your taxable income.<\/p>\n\n\n\n Build a compliance calendar. Name an owner for every deadline. Review it at the start of each month.<\/p>\n\n\n\n If your company has a net worth of \u20b9250 crore or more, or is listed on any stock exchange, Ind AS is not optional. But even for companies below the threshold, early adoption signals financial maturity to investors, lenders, and potential acquirers.<\/p>\n\n\n\n The three standards with the biggest day-to-day impact: Ind AS 115 changes when and how revenue is recognised, especially relevant for construction, long-term contracts, and subscription businesses. Ind AS 116 moves operating leases onto the balance sheet, affecting gearing ratios and EBITDA. Ind AS 12 requires deferred tax accounting, which changes how your tax position is disclosed.<\/p>\n\n\n\n Each of these affects reported profitability and covenant compliance. Engage your statutory auditor before implementation, not after you’ve filed incorrectly.<\/p>\n\n\n\n Internal controls are not bureaucracy. They are the mechanism that keeps your finance and accounting process trustworthy \u2014 and your leadership team confident in the numbers it receives.<\/p>\n\n\n\n The essentials:<\/strong> no single person controls a transaction end to end; approval thresholds are tiered by value; audit trails are complete and tamper-proof; balance sheet accounts are reconciled every month.<\/p>\n\n\n\n Beyond internal controls, your MCA obligations have hard deadlines. Annual returns (Form MGT-7) and financial statements (Form AOC-4) must be filed through the MCA21 portal <\/a>every year. Cost audit under Section 148 is mandatory for cement, steel, pharma, and telecom companies above prescribed turnover thresholds. Missing these filings attracts escalating daily penalties, and in serious cases, director disqualification.<\/p>\n\n\n\n Internal audits every quarter. External audit every year. No exceptions.<\/p>\n\n\n\n A profitable business can still run out of cash. According to CRISIL research, working capital mismanagement is among the top three reasons financially healthy Indian companies face liquidity stress. Profitability and liquidity are not the same thing.<\/p>\n\n\n\n Build rolling 13-week cash flow forecasts. Chase receivables systematically<\/a> \u2014 clear payment terms, automated reminders, formal escalation for overdue accounts. Negotiate payment terms with non-MSME vendors<\/a> to preserve working capital without creating compliance exposure. Connect your cash flow model to your budget so stress shows up in a forecast, not a crisis.<\/p>\n\n\n\n Your monthly P&L, Balance Sheet, and Cash Flow Statement are not just compliance documents. They are the clearest signal your business sends to its own leadership.<\/p>\n\n\n\n Review management accounts within five working days of the month-end. Run quarterly budget-versus-actuals reviews with genuine commentary, not just variance tables. Track current ratio, debtor days, and EBITDA margin consistently so trends are visible before they become problems.<\/p>\n\n\n\n The finance function’s real job is not to file on time. It is to tell leadership what is actually happening, and what comes next.<\/p>\n\n\n\n![\"Indian](\"https:\/\/corientbs.com\/in\/wp-content\/uploads\/2026\/04\/Finance-and-accounting-process-2-1024x576.webp\")
<\/figure>\n\n\n\n\n
Step 3: Choose Software You’ll Actually Grow Into<\/h2>\n\n\n\n
Step 4: Respect the Daily Discipline of Bookkeeping<\/h2>\n\n\n\n
Step 5: Your Finance and Accounting Process Needs a Tax Engine \u2014 Not a Last-Minute Scramble<\/h2>\n\n\n\n
Income Tax: <\/h3>\n\n\n\n
Transfer Pricing: <\/h3>\n\n\n\n
MSME Payments: <\/h3>\n\n\n\n
Step 6: Take Ind AS Seriously, Even If It Isn’t Mandatory Yet<\/h2>\n\n\n\n
Step 7: Put Controls in Place Before Something Goes Wrong<\/h2>\n\n\n\n
Step 8: Manage Cash Flow \u2014 Don’t Just Watch It<\/h3>\n\n\n\n
Step 9: Let Financial Reports Do the Work They’re Designed For<\/h2>\n\n\n\n
Get a Free Finance Process Review.
<\/strong>Find out what’s breaking \u2014 before a GST notice, a missed deadline, or a delayed month-end close does.<\/h3>\n\n\n\n