Accounting Manual

NEUSOURCE AUDIT MANUAL


1 | P a g e c o p y r i g h t 2 0 1 3 © w w w . n e u s o u r c e i n d i a . c o m

NeuSource Accounting Manual

(Volume 1)

A Comprehensive Set of Procedure Manual

To guide Neusource Account Executives

To carry out accounting of clients in

Planned manner and delivering

Quality Output

Compiled by: Team Neusource



Preface

The Neusource Accounting Manual is a comprehensive set of the policies and procedures

for carrying out different assignments and activities made with an intent to execute by

neusource executives deputed to perform accounting assignments of neusource clients.

These financial policy and procedure are expected to be followed by all staffs without

default. It also provides guidelines that neusource will use to administer the output of clients

assignments, hence each staff should try to get versed with the correct procedure to follow.

Required content of these policies can also be found uploaded and attached at neusource

workflow with each activity assigned; therefore all executive staffs are expected to perform

the assigned activity in accordance with written procedure & guidelines.

Neusource management will keep all financial policies current and relevant. From time to

time it will be necessary to modify and amend some sections of the policies and procedures,

or to add new procedures.

Any suggestions, recommendations or feedback on the policies and procedures in this

manual are welcome. You can mail all your feedback & suggestions to

[email protected]; for better understanding or clearing your doubts you can ask your

immediate manager, and if your query is unsolved or you are having any problem with

regard to getting proper support from your manager; you may freely write to

[email protected]. Your every communication shall be counted for assessment

of your performance.

HR Department at neusource is also closely involved in administering the usage of these

procedures and also a separate ‘Quality Control Team’ is rechecking the closed activities for

their proper execution. As an administrative setup we have the following authorities working

on the manual.

Sl. No. Name of Person-in-

charge

Admin Resp. Contact id

1 Jai Sethi Content [email protected]

mailto:[email protected]





2 Hemant Gupta Co-ordination [email protected]

3 Neha Sinha Complaint [email protected]

4 Rakesh Kumar Training [email protected]

These policies and procedures apply to all employees. Also note that enclosures are part

of SOPs to which they are attached.

Client •Handovers the

Accountancy Project to Neusource

Sr. Manager

•Create Assignment

Manger •Create Activity

Executive •Execute the

Activity According to these SOPs

Quality Control

•Execute QC process According to these SOPs

Work flow Diagram






Index

Sl. No. Content Page No.

1 Assignment Summary 6

2 Detailed SOPs 8

3 Review Procedure 795

4 Epilogue 797



Assignment Summary

Sl.

No.

Assignment Category Assignment Particulars Assignment

Code

Count of

Activities

1 Initial Setup Client Start-up Activities NSOP/IS/1 10

2 Initial Setup Software setup NSOP/IS/2 23

3 Initial Setup Master Creation & Setup NSOP/IS/3 9

4 Treasury Cash Management NSOP/TS/1 6

5 Treasury Bank Management NSOP/TS/2 34

6 Accounts Payable Data Entry AP NSOP/AP/1 77

7 Accounts Payable Creditors Management NSOP/AP/2 6

8 Accounts Payable TDS Compliances NSOP/AP/3 10

9 Accounts Payable PF Compliances NSOP/AP/4 7

10 Accounts Payable ESI Compliances NSOP/AP/5 7

11 Accounts Receivable Inter Company Transfers NSOP/AR/1 2

12 Accounts Receivable Data Entry AR NSOP/AR/2 30

13 Accounts Receivable Debtors Management NSOP/AR/3 5

14 Accounts Receivable Excise Compliances NSOP/AR/4 13

15 Accounts Receivable Service Tax Compliances NSOP/AR/5 8

16 Accounts Receivable VAT Compliances NSOP/AR/6 22



17 Accounts Receivable TCS Compliances NSOP/AR/7 8

18 Closing Monthly MIS NSOP/CL/1 1

19 Closing Annual Book Closure NSOP/CL/2 1

20 Inventory Management Inventory Entries NSOP/IM/1 17

21 Secretarial Compliances Maintenance of Statutory Records (Company) NSOP/SC/1 1

22 System Maintenance Tally Maintenance NSOP/SM/1 7

23 System Maintenance Miscellaneous Jobs assigned by client NSOP/SM/2 5

24 System Maintenance Miscellaneous Jobs assigned by Neusource NSOP/SM/3 0

25 System Maintenance Order Processing NSOP/SM/4 8

26 Visits Client Visit NSOP/VS/1 1

27 Income Tax Income Tax Notice Reply NSOP/IT/1 1

28 Income Tax Income Tax Scrutiny Case Preparation NSOP/IT/2 1

29 Income Tax Income Tax Audit Preparation NSOP/IT/3 1

30 Income Tax Filing of ITR-1 NSOP/IT/4 1







37 Income Tax Filing of ITR-4S NSOP/IT/11 1



38 Income Tax Income Tax Apeal NSOP/IT/12 1

39 Income Tax Income Tax ITAT NSOP/IT/13 1

40 Income Tax Income Tax Refund NSOP/IT/14 1

41 Income Tax 15 CA/CB NSOP/IT/15 1

42 Income Tax Computation Of Advance tax NSOP/IT/16 1

43 Income Tax Revision of ITR NSOP/IT/17 1

44 Income Tax PAN Surrender NSOP/IT/18 1

45 Income Tax Certification NSOP/IT/19 0

46 Income Tax Tax Audit Report NSOP/IT/20 1

47 Registration Partnership Registration NSOP/RG/1 1

48 Registration Company Registration NSOP/RG/2 1

49 Registration TAN Registration NSOP/RG/3 1

50 Registration PAN Registration NSOP/RG/4 1

51 Registration 80 G Registration NSOP/RG/5 1

52 Registration Service Tax Registration NSOP/RG/6 1

53 Registration Luxury Tax Registration NSOP/RG/7 1

54 Registration Trust Registration NSOP/RG/8 1

55 Registration Society Registration NSOP/RG/9 1

56 Registration HUF Formation NSOP/RG/10 1

57 Registration DIN Registration NSOP/RG/11 1

58 Registration Trade mark Registration NSOP/RG/12 1



59 Registration Excise Registration NSOP/RG/13 1

60 Registration Partnership dissolution NSOP/RG/14 1

61 Registration Supplementary Deed for change of Partner NSOP/RG/15 1

62 Registration IEC Code Registration NSOP/RG/16 1

63 Registration Shop & Establishment Registration NSOP/RG/17 1

64 Registration PF Registration NSOP/RG/18 1

65 Registration ESI Registration NSOP/RG/19 1

66 ROC Share Transfer NSOP/RC/1 1

67 ROC State Change in ROC NSOP/RC/2 1

68 ROC Address Change In ROC NSOP/RC/3 1

69 ROC Increase in Authorised Capital NSOP/RC/4 1

70 ROC Allotment of Shares NSOP/RC/5 1

71 ROC Change in MOA NSOP/RC/6 1

72 ROC Change of Director NSOP/RC/7 1

73 ROC Closer of Company NSOP/RC/8 1

74 ROC ROC refund NSOP/RC/9 1

75 ROC Form 23 B filing NSOP/RC/10 1

76 ROC ROC Filing NSOP/RC/11 1

77 ROC Company Audit Report NSOP/RC/12 1

Total Activity Counts 368



Detailed SOPs

Category: Initial Setup

Assignment: Client Start-up Activities

Assignment Code: NSOP/IS/1

Sl. No. Activities SOP No.

1 Preparation of Fixed Expenses Chart & Display NSOP/IS/1 # 01

2 Preparation of Statutory Chart & Display NSOP/IS/1 # 02

3 Preparation of File Index & Display NSOP/IS/1 # 03

4 Preparation of list of Register maintained & Display NSOP/IS/1 # 04

5 Preparation of Organogram & Display NSOP/IS/1 # 05

6 Preparation of list of Previous pending Jobs NSOP/IS/1 # 06

7 Preparation of input & Output Documents lists & Display NSOP/IS/1 # 07

8 Client Start-up Kit Delivery & Implementation NSOP/IS/1 # 08

9 Preparation of Critical Point of Control & Display NSOP/IS/1 # 09

10 Preparation of Other Important Details NSOP/IS/1 # 10



Activity Title Initial Setup

SOP Title Preparation of Fixed Expenses Chart & Display

SOP No. NSOP/IS/1 # 01

Version # 1

Definition: In the operations of business fixed expenses are those expenses which do

not fluctuate with changes in the production activity level or sales level and have to be

paid regularly in a business. Some examples of fixed expenses are rent or lease, loan

EMIs, insurance premiums, staff salary, various taxes, telephone, electricity bills and

other monthly bills.

Objective: The basic objective of doing this activity is to avoid the delay in

payment by missing the date of payment and thereby avoiding the consequences

of late payment, interests, penalty & disruption of business entity.

Procedure:

To perform this activity Executive is suggested to gather information from the

financial statements of previous periods and may collect the information & data

from available accounting files, account books & all other possible sources.

Chart of fixed expenses shall be prepared in the format given hereunder as

enclosure 1 of this SOP.

Chart once prepared must be cross signed by Assigned Relationship Manager

and Client/ owner.

A copy of the same chart must be displayed prominently near the seat of

Executive.

This chart must be kept in a separate file named as “Master Documents”.



Impact of Non Compliance on person responsible:

The Executive is suggested to intimate to the Relationship Manager about the

performance of activity and in case of failure on the part of Executive to identify

or notify the Relationship Manager an adverse entry for continuously 1 month or

7 days in case the error notified by client, shall be marked by HR in his/her file

noting; if reported by Relationship Manager in his visit report.

Relationship Manager shall at each visit mark in the visit diary <kept with the

Executive to monitor the progress in each visit> that chart activities cross

checked and no new activity found as missing.

In case of any new fixed expense identified to be added in the chart the

Executive shall notify the detail to assigned Relationship Manager. For any

future change this activity shall not be created next time, hence the Relationship

Manager shall during his next visit shall review the activity and take a note of

this activity in his visit report.

In case of failure on the part of Relationship Manager for not reviewing the

activity for 2 consecutive visits after due intimation and case reported or brought

to notice by any means, Relationship Manager shall get adverse entry marked

by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the

activity as a proof of closure of activity.

Enclosure - 1

Format of Chart

Heading Sub Heading Account No. Amount Day APR To MAR

Credit Cards HDFC

Citi Bank

ICICI

Kotak



SBI

Loan-EMIs Personal Loan EMI

Auto Loan EMI

Term Loan EMI

Rent or lease Factory Rent

Office Rent

Godown Rent

Guest House Rent

Telephone Telephone No.1

Telephone No.2

Telephone No.3

Telephone No.4

Telephone No.5

Telephone No.6

Electricity Factory Electricity

Office Electricity

Godown Electricity

Guest House

Electricity

Insurance LIC of Directors

Factory Insurance



Health Insurance

Vehicle Insurance

ESI

Taxes VAT

Service Tax

Excise

Income Tax

TDS

TCS

PF

Fixed Monthly

Bill

Consultant Fees

Security Bill

Water Bill

Courier Bill

Fright Bill

Fuel bill

Staff Salaries Managers

Executives

---- End of Document (NSOP/IS/1 # 01) ----




SOP Title Preparation of Statutory Chart & Display


Version # 1

Definition: Statutory compliances are those procedures which are mandatory to follow

or those compliances which are required to be fulfilled, mentioned in any statue, law or

regulation. Statutory Compliances shall cover all informative filings/reporting, bank

reporting responsibility, tax payment & periodical returns etc.

Objective: The basic objective of doing this activity is to avoid the non-compliance of

legal requirements and will result in elimination of consequences of non-compliance.

Further this activity will assist to remind the due dates of government dues which will

eliminates non-payment by missing the due date of payment and thereby avoiding the

consequences of late payment, interests, penalty, notices and other proceedings.

Procedure:

To perform this activity Executive is suggested to gather information from the

financial statements of previous periods and may collect the information & data from

available accounting files, account books & all other possible sources.

Chart of statutory compliances shall be prepared in the format given hereunder as

enclosure 1 of this SOP.

Chart once prepared must be cross signed by Assigned Relationship Manager and

client/owner.

A copy of the same chart must be displayed prominently near the seat of Executive.

This chart must be kept in a separate file named as “Master Documents”.





performance of activity and in case of failure on the part of Executive to identify or

notify the Manager an adverse entry for continuously 1 month or 7 days in case the

error notified by client, shall be marked by HR in his/her file noting; if reported by

manager in his visit report.

Manager shall at each visit mark in the visit diary <kept with the Executive to monitor

the progress in each visit> that chart activities cross checked and no new activity

found as missing.

In case of any new fixed expense identified to be added in the chart the Executive

shall notify the detail to assigned Manager. For any future change this activity shall

not be created next time, hence the Manager shall during his next visit shall review

the activity and take a note of this activity in his visit report.

In case of failure on the part of Manager for not reviewing the activity for 2

consecutive visits after due intimation and case reported or brought to notice by any

means, Manager shall get adverse entry marked by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the

activity as a proof of closure of activity.

Enclosure - 1

Format of Chart

Particular Dept. Due Date and

frequency

Preceding

F. Y. Status

April (Actual Date)

IND

IREC

T TA

XES

Sales Tax Payment Challan

Sales Tax Return

Excise Duty Challan/

Deposited in PLA

Excise Duty Return



Custom Duty Payment

Challan

Custom Duty

Return(BOE/BOL)

Service Tax Challan

Service Tax Return

DIR

ECT

TAX

ES

Income Tax Challan

Income Tax Return

TDS Challan (Other than

Salary)

TDS Challan (Salary)

TDS Return

(Other than Salary)

TDS Return (Salary)

TCS Return

Advance Tax 15June, 15Sept,

15Dec, 15March

Wealth Tax

---- End of Document (NSOP/IS/1 # 02) ----




SOP Title Preparation of File Index & Display


Version # 1

Definition: Filing is retention and arrangement of necessary documents and records of

business entity in a logical manner which assists in efficient and timely access to the

required business document.

Objective: The basic objective of doing this activity is to avoid individual desk file, reduce

duplicity, unnecessary record retention and to draft a method for filing, retaining and

disposing of business records, which will assist in efficient access of business documents.

Procedure:

All file cabinets, file boxes and files should follow logical order such as left to right,

top to bottom, newest to oldest and their names/numbers should be in standard

format.

Files relating to common category should be placed in same cabinet/rack and the

category and cabinet name/number should also be mentioned on every file. And

files relating to particular category can be differentiated by file colour also.

Name and/or number of files, file boxes and file cabinets should always be

mentioned on front side.

Extra care should be used sensitive or secret information and should be kept in

secure area.

Access of all files should be limited to those who has need to know that particular

information.



Files are suggested to be categorised in:

Super Master Files: Those files which contains documents relating to non-recurring

issues like registration of company, registration with various government/tax

authorities.

Master Files: Those files which contains master document relating to periodical

issues like return filed with various tax authorities, periodical financial statements,

monthly/quarterly reports etc.

Voucher Files: Those files which contain documents as per voucher type.

Summary of documentation shall be prepared as chart in the format given

hereunder as enclosure 1 of this SOP.

Chart once prepared must be cross signed by Assigned Relationship Manager

and Client/ owner.

This chart must be kept in a separate file named as “Master Documents”. A

copy of the same chart must be displayed prominently near the seat of

Executive.



performance of activity and in case of failure on the part of Executive to identify or

notify the Manager an adverse entry for continuously 1 month or 7 days in case the

error notified by client, shall be marked by HR in his/her file noting; if reported by

manager in his visit report.

Manager shall at each visit mark in the visit diary <kept with the Executive to monitor

the progress in each visit> that chart activities cross checked and no new activity

found as missing.

For any future change this activity shall not be created next time, hence the Manager

shall during his next visit shall review the activity and take a note of this activity in his

visit report.

In case of failure on the part of Manager for not reviewing the activity for 2

consecutive visits after due intimation and case reported or brought to notice by any

means, Manager shall get adverse entry marked by HR in his file noting.

Closure of Activity: Scan of signed copy of the chart shall be attached with the activity

as a proof of closure of activity.



Enclosure - 1

Format of Chart

SUPER MASTER FILES

File Name & No. Rack No. Location Department Concern Access Authority

MASTER FILES

File Name & No. Rack No. Location

Period Covered

Access Authority From To

VOUCHER FILES

Voucher

Type

File Name &

No. Rack No. Location

Period Covered

Access Authority From To

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