Outsourcing GST and Accounting work in Faridabad , Gurgaon, NCR Delhi

Ideas in Agreement for Outsourcing of Accounting Department work

• Benefits expected to CUSTOMER
  1. Much Higher level of Reliability –
     1. Reliability of Reports
     2. Reliability of Purchase bill passing

• Ontime payment of all telephone bills , credit card bills, insurance payments

1. Reliability of Purchase bill passing,
2. Daily MIS reports on sales, collection, payments,
3. Daily bank reconciliations
4. Better quality of integrated accounting, with all locks as possible in FINSYS ERP

• Special Benefit of this assignment and business method
  1. Monthly top level meetings at Factory / Customer HO
  2. Over powerpoint presentations
  3. Reviewing,
     1. What was done ?
     2. What was not done ?
     3. Where are we ?
     4. Where are we going , (direction ) ?

• Companies included
  1. One company and one factory of CUSTOMER only

Scope of Work : Inclusions

• Inclusions : Scope of work  :
  1. Data Entry for Financial Accounting of the day to day vouchers into FINSYS software – Accounting Module. As per details in next para.
  2. Preparation of the Annual Profit and Loss Statement and the Balance Sheet, commencing with the financial year 2019-20.
  3. Preparation of the regular Monthly MIS reports for the Financial Accounts, including short Profit and Loss Statement.
  4. Preparation of TDS returns
  5. Preparation of calculations for TDS monthly payments challans.
  6. Preparation of GST returns GSTR1
  7. Preparation of GST returns GSTR-3B
  8. Bank Reconciliation on regular basis.
  9. Cheque preparation ( if NEFT / RTGS is not in place)
  10. Online payments to be done by CUSTOMER commercial team.
  11. Finsys shall do the preparation for the NEFT / RTGS online request. However, “checker” / “approver” on the bank website/software will be responsibility of CUSTOMER
  12. When requested, advising staff on the maintenance of the proper supporting and better ERP utilisation in materials and purchase dept also … as far as it related to better vendor bill passing + controls.
  13. General tax consultancy and Advice as requested from time to time.

• Note regarding Purchase Bill passing
  1. Finsys work include Purchase, Journal Vouchers, Imprest Vouchers, Cash, Bank, Debit Notes, and Credit Notes. Basically, all financial vouchers.
  2. Note : All Purchase bills shall be passed by Finsys team based on the “Commercial passing” by the CUSTOMER Team
  3. CUSTOMER team shall do this passing by its internal system of “approved” PO and “approved” MRR. Further they must be QC passed. Only then the bill will be passed in Accounts by Finsys Team. In case of problem, the Finsys team will raise the Query to the Commercial Dept. …
  4. All these processes are inbuilt in Finsys ERP. Finsys team will obey the process and shall help CUSTOMER team follow this strong process. This is the way any organized process Driven MNC works.

• Note regarding Sales Bill / Invoices
  1. They are created automatically in the FINSYS ERP package based on the Invoices made by the Despatch team.
  2. Hence no requirement
  3. However Finsys TEAM shall do a proper audit of each bill
  4. Physical copy vs online record…. To highlight variation if any ( rare, but possibility is there due to user editing. Hence this is a internal audit process Finsys follows )

• Note regarding Indirect Expenses / Overheads Bill passing
  1. The CUSTOMER commercial dept will “pass/sanction” these bills, and give to Finsys team.
  2. Responsibility of Finsys team shall be limited only to “data entry” of these.
  3. Example: Telephones, staff imprest vouchers, staff conveyance, credit card statements, petrol bills, business promotion, foreign travel, electricity, water, staff welfare.

• Note regarding onsite accountant
  1. As of now
     1. Nil, ( Excluded ) ( can be arranged on extra basis )
     2. Cash payments, and emergency cheques will be prepared by the CUSTOMER Commercial department.
  2. Suppose person is added onsite.
     1. In case he is on Finsys Rolls, his scope of work will be emergency cheques preparation, arranging the information to the other departments, that is required then and there. Helping in customer account reconciliation / vendor account reconciliation / staff advances / staff imprest bill passing etc
     2. If work is more than time available for a normal person’s work, then additional manpower can also be deputed onsite, extra basis.

• Note regarding MIS Reports
  1. Finsys team shall provide the pre-agreed reports on a daily / weekly / monthly basis.
  2. Some of these reports are based on the data that is currently not available. And this may take time. Hence some reports will start in the first month, some in second month, and other reports over a period of time.

Scope of Work / Sharing of Work :

Relationship with Other Departments

• GST dept activities
  1. Preparation of GST return 3B = Finsys
  2. Preparation of GST return R1 = Finsys
  3. Preparation / calculation of GST Challans = Finsys
  4. But going to Department for any Forms / Physical meetings / On road Challan due to any vehicle being caught = in CUSTOMER Scope
  5. E Way bill will be generated by CUSTOMER Team.

• Work by Banking team
  1. Accounting by Finsys
  2. Reconciliations by Finsys
  3. Funds allocation internal with CUSTOMER
  4. Cheque making + printing + cellotape by Finsys ( for safety from frauds )
  5. Cheque release planning by CUSTOMER
  6. Bank meetings and renewals and negotiations, by CUSTOMER

• Exclusions : Materials Inwards / Outwards / Issue entries / stocks
  1. The Stores / Purchase / Sales departments shall do their own respective work, and Stores accounting is not included

• Exclusion : Commercial Department
  1. Finsys team shall be dependent on the commercial CUSTOMER dept for the following
     1. Work of Cashier.
     2. Day to day going to Bank / Deposit of Telephone bills, Electricity, Credit cards etc.
     3. Day to day going to Customer / Vendors / service providers.
     4. Customer Account Reconciliation / Vendor Account reconciliation.
     5. Courier / Person who will take documents to Finsys office on daily basis.
     6. Day to day meetings with customers or vendors for any purpose whatsoever.

• Work of Payroll / Salary Dept
  1. Model A
     1. Inclusion with Finsys
        1. The important task of TDS on salaries by Finsys, is a part of accounts department outsourced to Finsys
     2. Exclusions
        1. All other work in HR Domain by CUSTOMER team
     3. Model B
        1. All activities in Model A plus the following
        2. Usually every company has an internal HR department, so these tasks as done by them. However, in case that is required, then as a separate assignment, we can add the following inclusions too.

• Inclusion with Finsys in model B
  1. Salary Preparation, by Finsys
  2. Letter to Bank for Salary Transfer. Finsys
  3. ESI, EPF, welfare fund returns by Finsys
  4. TDS on Salaries by Finsys

1. Exclusions
   1. Time office
   2. Appointment letters, increment letters, HR procedures, penalties.
   3. KRA / Job Descriptions , job monitoring, admin duties of any kind.
   4. And all other work
   5. Current plan is for Model A
   6. For knowledge, the Finsys team can work on Model B, with an extra financial contract. So, excluded for time being

• Other Exclusions :
  1. These jobs are currently excluded for this contract. However, Finsys team can help organize professionals directly/indirectly to handle the same on extra basis.
     1. Going to GST / income tax offices for scrutiny or any work that is currently being handled by other consultants.
     2. Work of other departments like Procurement Planning, Purchase, Sales, Stores, Despatch, Quality, etc. These departments shall continue their duties.
     3. ROC Minutes book, detailed shareholders registers, and all ROC Records.
     4. Cost Accounting books, all Cost Accounting Records and Cost Audit.
     5. Fixed Asset Registers.
     6. Personal accounting & Personal Balance Sheet / Income tax returns, of the Directors family members.
     7. Any other matters not in scope para.
     8. All out of pocket expenses are on CUSTOMER account ( if any ).

• Statutory Auditors / Tax Auditors
  1. Existing CA’s may continue as it is
  2. Finsys shall submit all required accounting information as required in normal statutory audit and normal tax audit as in previous years.

Contract Period

 Contract Effective Date

• 1. This contract will come into force, w.e.f. ____ ( date shall be filled in this template )
• Contract period
  1. Tentatively, the contract are with a horizon of 12 months. (One year ).
  2. It may be extended by mutual consent, on year to year basis.
  3. It may also be terminated at any time by either party with 3 month notice.

Exit procedure –

• in case of Notice to Finsys team to exit the contract
  1. During the Notice period, following process is to be done.
  2. Responsibilities of Finsys Team
     1. Finsys shall hand over all documents, vouchers, files, and soft copies of the required files to the new accounting firm / internal CUSTOMER team. This may include parallel handholding for this Transition period.
     2. Finsys shall give the suggested SOP’s to the new team.
  3. Responsibilities of CUSTOMER Team
     1. CUSTOMER shall create a capable team to take the handover.
     2. CUSTOMER shall clear all financial dues of the Finsys team, upto the notice date and for the Transition period.

Locations and Visits

• Locations of Accounting work
  1. Work to be done usually, at the office of the Finsys
  2. Meetings may usually be done at Customer office as per mutual convenience from time to time.
• Locations of Storage of Documents
  1. Voucher Files shall come back to CUSTOMER office at regular intervals, The CUSTOMER shall keep them safely in a proper commercial Warehouse for future safety.
  2. Usually vouchers will be returned after its relevant Quarter ending / Half year ending returns have been filed.
• Locations – onsite Deputed Accountant
  1. Not applicable / may be discussed.
  2. Customer will continue to retain at least one commercial accountant on site for the commercial activities as discussed.

for Commercials and other info, contact us

What things Finsys team can do and how ?