What's included in Accounting for Startups in India?

Key takeaways

CA-led Virtual Accounting means a Chartered Accountant team executes bookkeeping, GST, TDS, payroll, income tax, and compliance, while an AI dashboard gives you visibility, tracking, and comfort.
The dashboard is for oversight, not DIY accounting, your CA team handles the work and signs off, you monitor status, documents, and metrics in real time.
A disciplined monthly close under Indian GAAP, or Ind AS, ties your ledgers to GST and TDS returns, payroll, ROC, and audit packs, preventing notices and penalties.
Decision ready MIS, budgeting, and cash projections convert clean books into burn rate, runway, and unit economics, so leadership can plan with confidence.
When done right you get accurate books, timely filings, audit readiness, and consistent compliance with the GST Act, Income Tax Act, and Companies Act.

What are CA-led Virtual Accounting services, and how do AI dashboards fit?

Virtual Accounting, when led by a CA team, is a managed service where qualified accountants handle your bookkeeping, GST, TDS, payroll, income tax, ROC support, and audit readiness under Indian regulations. The AI dashboard is your window into that work, not the workbench. You see status, filings, pending reconciliations, and KPIs in one place, while the CA team performs and reviews the tasks end to end.

Think of the dashboard as flight instruments, not the cockpit controls, your CA team pilots the plane, you monitor trajectory and milestones.

Done right, this model delivers accurate books, timely filings, and decision ready MIS, matching guidance from accounting services for startups India and outsourced accounting helps startups save money.

Scope of accounting services for startups in India

Startups often assume accounting equals data entry, yet in India it also encompasses tax compliance, payroll, and regulatory filings. A complete scope prevents gaps like GST ITC rejections, TDS interest, or audit issues, as summarized in accounting services for startups India and how outsourced accounting helps startups save money.

Bookkeeping with a monthly close aligned to Indian GAAP or Ind AS
GST compliance, registration to returns, with ITC management
TDS and income tax compliance, TAN, quarterly returns, annual ITR
Payroll processing, PF, ESI, Professional Tax where applicable
Financial reporting, profit and loss, balance sheet, cash flow
Audit support, reconciliations, and compliance filings

All tasks align to the GST Act, Income Tax Act, Companies Act, and Indian GAAP or Ind AS, ensuring books support filings and audits.

Core bookkeeping and monthly close

Every return and report pulls from your ledgers, so the monthly close is the backbone. A strong close prevents cash confusion, GST or TDS errors, and audit delays, as noted in the bookkeeping services India guide, and reinforced by accounting and bookkeeping for startups and outsourced accounting for startups.

Transaction capture from bank, UPI, wallets, gateways, with a startup specific chart of accounts
Reconciliations for bank, wallets, and gateways, removing duplicates and misses
Accruals and adjustments for expenses and revenue per Indian GAAP
Monthly trial balance and close notes, creating a usable audit trail

GST compliance tasks

GST has periodic activities and strict matching, missing rules leads to ITC blocks, interest, and notices. Clean GST also needs correct place of supply and export documents. For a deeper view, see GST compliance services India, GST for startups, and account outsourcing can transform your business in India.

GST registration, GST compliant invoicing, checks for e invoicing thresholds, and e way bill needs
Periodic filings like GSTR 1 and GSTR 3B with reconciliation checks
Input tax credit reconciliation with vendor data, mismatch prevention
Place of supply review for inter state and intra state tax
LUT for exports, zero rated supplies, and proper documentation

TDS and direct tax, income tax compliance

Missed or short paid TDS invites interest and penalties, vendors may pause work if certificates lag. Income tax gaps create last minute cash outflows. Reference, TDS and income tax services, plus TDS compliance for startups and outsourced accounting.

TAN application and maintenance, identification of TDS applicable payments
Quarterly TDS deposits and returns in Forms 24Q and 26Q, issuing Form 16 and Form 16A
Advance tax computation during the year, annual income tax filing with required schedules

Payroll processing and statutory dues

Payroll touches tax and labour law, errors trigger PF or ESI notices, or employee disputes. Scope and cadence are outlined in accounting and payroll for startups.

Monthly payroll runs, payslips, salary TDS, correct treatment of reimbursements and benefits
PF, ESI, and Professional Tax computations and filings where applicable
Controls to reduce contractor versus employee misclassification risk

Accounts payable and receivable routines

AP and AR drive cash flow and GST accuracy, disciplined routines prevent duplicate payments, missed credits, and wrong ITC, per startup accounting practices.

Vendor onboarding with PAN and GST checks, bill booking with GST validations, scheduled payment runs
Customer invoicing checks, AR aging, collections tracking, credit note handling
Reconciliations with vendor and customer statements to catch early errors

Financial statements and audit support

Investors, lenders, and regulators rely on your P and L, balance sheet, and cash flow. If they do not tie to schedules and reconciliations, audits get delayed or qualified. Guidance appears in financial reporting and audit support.

Preparation of reporting packs, P and L, balance sheet, cash flow with schedules
Year end adjustments for accruals, provisions, depreciation, and external confirmations
Audit coordination, reconciliations including bank and gateways, audit ready books

Companies Act ROC support driven by accounting data

ROC filings and statutory registers must match your books, mismatches trigger queries and rework, as covered in startup compliance scope.

Maintaining statutory registers aligned to accounting records, preparing data for annual ROC filings like AOC 4
Ensuring accounting classifications and disclosures match secretarial records

Management reporting, MIS, budgeting, and forecasting

Compliance alone does not guide decisions, MIS translates books into burn, runway, and unit economics, enabling hiring and fundraising plans. See startup MIS expectations and outsourced accounting for better decisions.

MIS packs with burn rate, runway, unit economics, revenue cohorts, variance analysis
Budgeting, cash projections, scenario plans, actuals versus budget tracking
Investor and board ready reporting cadence

Pro tip: Pair monthly close notes with a live dashboard, so leadership sees the narrative behind the numbers, not just the numbers.

Asset, inventory, and revenue recognition policies

Policies determine when you book revenue, how you depreciate assets, and value inventory, wrong policies distort profit, tax, and cash. For frameworks, review startups outsource accounting services.

Fixed asset register maintenance, depreciation methods like SLM or WDV
Inventory valuation such as FIFO, and its impact on cost of goods sold
Revenue recognition for SaaS, subscriptions, and marketplaces, with Ind AS considerations

Compliance calendar and filing frequencies

Indian compliances follow a strict calendar, missing dates means interest, penalties, and blocked credits. Reference calendars in startup compliance calendars, outsourcing guides, and account outsourcing in India.

Weekly, transaction reviews and reconciliations as needed
Monthly, bank reconciliations, GSTR 3B, payroll, PF or ESI or PT
Quarterly, GSTR 1 where quarterly, TDS deposits and returns with common due dates like the 7th and 30th, advance tax installments
Annually, income tax returns with a date like Jul 31, GST annual return with a date like Dec 31, ROC filings with a date like Oct 30, statutory audit where turnover thresholds apply such as more than rupees 2 crore

Always check current rules before filing, dates and thresholds can change.

Stage specific emphasis for startups

The scope is stable, the emphasis shifts by stage, aligning focus reduces waste and ensures investor readiness, per startup accounting scope and outsourced accounting for growth.

Pre revenue, registrations, control setup, policy drafting, light bookkeeping
Early scale, process formalization, AP and AR discipline, monthly closes
Fundraise, due diligence ready books, audit trail, tighter MIS
Post fundraise, deeper MIS, budgeting, governance cadence

Industry specific considerations for common startup models

Core accounting remains the same, tax and reporting nuances differ by model. See industry nuances for startups and outsourced accounting nuance.

SaaS and exports, LUT for exports, zero rated GST, foreign receipt documents
Marketplaces, TCS on collections, commission accounting
D2C and e commerce, returns, discounts, GST treatment across revenue and COGS
Fintech, alignment with regulatory reporting needs

Common pitfalls these services prevent

Understanding the risks explains why each task exists, and what breaks if it is ignored. Spot and prevent these issues with your CA team, guided by startup accounting pitfalls and outsourcing pitfalls and fixes.

GST ITC mismatch and wrong place of supply, leading to notices and ITC reversals
TDS default or short deduction, interest like 1.5 percent per month and penalties
Payroll misclassification between contractor and employee, PF or ESI issues
Revenue recognition errors, missing audit schedules, audit qualification risks

Typical deliverables you should expect

Clear outputs help you verify complete scope coverage, and prove filings and records for future audits, echoing deliverables for startup accounting and deliverables in outsourced accounting.

Clean ledgers, reconciliations, monthly trial balance with close packs
Filed returns for GST and TDS with challans and acknowledgements
Form 16 and Form 16A for employees and vendors where applicable
Financial statements with supporting schedules, MIS dashboards, documented accounting policies

In short, accounting services for startups India cover the bookkeeping core, tax and labour compliances, reporting, and audit readiness that a young business needs.

How AI dashboards elevate CA managed work without making it DIY

An AI dashboard sits on top of your CA team’s workflow, it aggregates ledger health, compliance status, and KPIs into one view. Founders gain clarity without taking on execution. For example, services like AI Accountant showcase how AI assisted workflows speed reconciliations and document matching while CAs retain control, see bookkeeping services India guide, GST compliance services India, and TDS and income tax services.

What you see in the dashboard

Close status by month, unresolved reconciliations, and exception counts
GST, TDS, PF and ESI calendars, filed versus pending, challan and acknowledgement links
MIS tiles for burn, runway, cohorts, and AR or AP aging
Audit trail breadcrumbs, tie outs for bank, wallet, gateway, and major schedules

Visibility without workload, that is the promise of a CA led model enhanced by AI dashboards.

FAQ

What does a CA led Virtual Accounting model include for an Indian startup, end to end?

It covers bookkeeping with a monthly close, GST registration and returns like GSTR 1 and GSTR 3B, TDS processes including TAN, 24Q or 26Q and certificates, payroll with PF and ESI where applicable, income tax planning and ITR, ROC data support, MIS and board packs, and audit readiness. This mirrors the scope described in accounting services for startups India and outsourced accounting guides, while the dashboard provides visibility, not DIY execution.

Will the AI dashboard make my founders do the accounting themselves?

No, the CA team performs and reviews all tasks, the dashboard is for visibility, tracking, and comfort. You see statuses, exceptions, and metrics, your CAs handle journal entries, reconciliations, filings, and sign offs.

How does an AI enabled service like AI Accountant fit into CA managed work?

AI Accountant illustrates how AI speeds reconciliations, matches documents, and flags exceptions, while Chartered Accountants control policies, reviews, and filings. That combination reduces errors and cycle time, yet keeps accountability with your CA team.

What compliance items are typically automated or tracked in the dashboard?

GST returns with ITC reconciliation, TDS deposits and returns, payroll runs with PF, ESI, and PT, ROC data packs, and MIS milestones like monthly close. The dashboard surfaces calendars, due dates, filed versus pending, and links to challans or acknowledgements for quick verification.

How do you prevent GST ITC mismatches for a fast moving startup?

By reconciling purchase registers to vendor data monthly, validating place of supply, and fixing master data early. Your CA team applies controls, AI flags anomalies, and you get a clear exception queue. This reduces ITC reversals and notices.

What should my monthly close deliverables look like?

A dated trial balance, bank or wallet or gateway reconciliations, accrual and provision schedules, revenue cut off tests, and close notes explaining material movements. The dashboard should mark the close status, and link to evidence for audit readiness.

How do CA led services handle TDS to avoid interest and penalties?

They maintain TAN, classify payments subject to TDS, perform monthly deposits, and file quarterly returns such as 24Q and 26Q, then issue Form 16 or 16A. AI can alert for missing PANs or rate mismatches, while CAs validate and file on time.

Can we get decision ready MIS like burn, runway, and unit economics each month?

Yes, MIS is a standard output. After the books are closed, the CA team prepares MIS packs, while the AI dashboard exposes tiles for burn, runway, cohorts, and variances, so founders and finance heads can review quickly.

Does this service cover payroll and labour law filings too?

Yes, monthly payroll, payslips, salary TDS, PF, ESI, and PT where applicable. The CA team sets controls to avoid contractor versus employee misclassification, and keeps filings aligned with the books and returns.

How is audit support handled in a Virtual Accounting setup?

Audit readiness is built into the monthly close, with reconciliations, schedules, and confirmations. During the audit, your CA team coordinates with auditors, while the dashboard provides a single view of pending schedules and tie outs.

Is this approach suitable for SaaS, marketplaces, and D2C models?

Yes, with model specific nuances, for SaaS and exports, LUT, zero rated GST, and FIRC documents, for marketplaces, TCS and commission accounting, for D2C, returns, discounts, and GST treatment in revenue and COGS. The CA team sets policies, the dashboard tracks exceptions.

What changes as we scale from seed to post fundraise?

The scope stays stable, the emphasis shifts, stronger AP or AR discipline, tighter monthly closes, diligence ready audit trails, deeper MIS, and governance cadence. AI helps with speed and monitoring, the CA team deepens review and control.