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Key takeaways
- Virtual Accounting that works is CA led, the team runs your books and compliance every month, the AI dashboard is for visibility and comfort, not a do it yourself tool for founders.
- Managed accounting is proactive and accountable, outsourced tasks are reactive, bookkeeping alone does not close the month or file returns.
- The scope covers bookkeeping, GST, TDS, income tax, payroll where agreed, and a monthly close with MIS and reconciliations, all delivered on a schedule.
- Controls such as maker checker, reconciliations, and an audit trail keep accuracy high and year end audit smooth.
- The dashboard surfaces status, exceptions, pending items, and SLA clocks, while the CA team prepares workings, takes approvals, and files on time.
- Clear roles avoid delays, the provider prepares and reconciles, the business supplies documents and approves filings, all tracked in the portal.
- Deliverables include trial balance, profit and loss, balance sheet, cash flow, MIS, challans, e filing receipts, and ledgers, month after month.
Table of contents
What exactly are managed accounting services in India
Managed accounting services in India means a CA led team operates your day to day accounting and ongoing compliance, then returns reconciled books, MIS, challans, and e filing receipts to you on a set schedule. It is continuous service, not a one time assignment.
Industry explanations consistently describe managed accounting as ongoing operations delivered by specialists, with regular deliverables back to the business. For a primer on how the model is structured, see what are managed services in accounting, managed accounting services, and setting up accounting services in India guide.
In a modern virtual setup, your team shares documents through a secure portal, the CA team processes and reconciles, and an AI dashboard gives you real time status, exceptions, and approvals, without asking your founders to post entries or compute returns.
Managed accounting, one clear statement
Managed accounting services in India is an end to end accounting and ongoing compliance model where a CA led team operates your bookkeeping, reconciliations, GST, TDS, payroll, and income tax cycles every month and quarter, see Managed accounting services in India for a detailed view. The team maintains controls, prepares returns, takes approvals, files on time, and hands back reconciled books, MIS packs, challans, and e filing receipts, with accountability measured through periodic deliverables.
Managed vs outsourced vs bookkeeping
- Managed accounting is proactive, it owns the full cycle, including books, reconciliations, compliance, and monthly close with insights. It runs on controls and SLAs.
- Outsourced accounting in a task sense is reactive, it takes narrow assignments such as only payroll or a single filing, it does not own the process or the MIS output. See outsourcing vs managed accounting services for a helpful comparison.
- Bookkeeping records transactions, it does not run compliance or the monthly close, and does not produce MIS. A discussion of cost and scope differences is here, cost accounting vs managed accounting.
Bottom line, managed accounting adds ownership of outcomes, not just activities.
Typical scope, what is included
The scope translates the idea into weekly, monthly, and quarterly work, so you always know what gets done and when.
- Bookkeeping and general ledger
- Vendor and customer ledgers
- Bank reconciliation and cash reconciliation
- Fixed asset accounting and depreciation
- GST compliance
- GSTR 1 and GSTR 3B preparation and filing
- GSTR 2B reconciliation with books
- Input tax credit checks and reversals where needed
- TDS filing
- Computation and challans
- Quarterly returns for 24Q for salaries and 26Q for others
- Income tax
- Advance tax workings and payments
- ITR filing coordination, and tax audit support where it applies
- Monthly close and MIS
- Trial balance, profit and loss, balance sheet
- Cash flow and variance views for spend and revenue
- Payroll and statutory submissions where agreed
- PF, ESI, Professional Tax filings
These inclusions are standard across managed models in India. For context, review what are managed services in accounting, setting up accounting services in India guide, and outsourcing accounting services in India.
Out of scope, what is not included
Clarity on exclusions prevents misaligned expectations.
- Company secretarial and MCA filings
- Litigation and complex dispute handling
- Advanced international tax or transfer pricing
- ERP implementation or large system projects
- Inventory operations and stock control
- High level CFO strategy unless specifically contracted
See the setting up accounting services in India guide for how providers typically document scope and exclusions.
How the engagement runs, onboarding to filings
Onboarding
- Set data access for GSTIN and TAN
- Collect prior records, opening balances, vendor and customer masters
- Map the chart of accounts to your reporting needs
Document flow
- Share invoices and receipts through secure portals
- Use maker checker workflows so one person posts and another reviews
- Maintain an audit trail for entries and filings
Processing cycles
- Monthly bookkeeping and monthly close
- Monthly or quarterly GST filings with approvals
- Quarterly TDS filings with approvals
- Monthly PF, ESI, Professional Tax
- Annual ITR and audit coordination
Communication
- A single point of contact for queries and approvals
- Status dashboards or portals for progress and pending items
- Periodic review calls and alerts for cut offs
The AI dashboard shows what is pending, what is cleared, and what is due next, while the CA team does the work behind the scenes.
Roles and responsibilities split
- Provider
- Records transactions from source documents
- Performs reconciliations for bank, GST, and TDS
- Prepares and files compliance after approval
- Compiles MIS and closes the month
- Business
- Supplies source documents on schedule
- Gives statutory sign off for returns and ITR
- Sets policies for revenue, expense, credit, and approvals
- Supports notice responses with facts and context
Approval checkpoints should be defined early, and evidence retained for audit and reviews. See what are managed services in accounting and outsourcing vs managed accounting services for operating model references.
Compliance calendar alignment in India
The service follows India deadlines and adjusts to notified changes.
- GST
- GSTR 1 is generally due by the 11th of the following month
- GSTR 3B is due on the 20th, 22nd, or 24th by state and category
- Monthly or quarterly options apply under the regime
- TDS due dates
- Quarterly returns by 31st of April, July, October, and January
- PF, ESI, Professional Tax
- Deposits and filings typically by the 15th of the following month
- Income tax
- Advance tax on quarterly dates
- ITR due dates by category
- Audit due dates for companies and other classes
Consult roundups such as setting up accounting services in India guide and outsourcing accounting services in India for calendar context.
Quality controls and audit readiness
- Maker checker review for entries and filings
- Automated reconciliations for bank, GST, and TDS with variance review
- Document retention with a clear audit trail
- Cloud security practices for access and backups
- Periodic internal reviews so year end audit is smooth
These practices are core to managed models, see what are managed services in accounting and outsourcing vs managed accounting services for deeper notes on controls.
Expected outputs and deliverables
You should expect clear, repeatable outputs that leadership can rely on.
- Periodic deliverables
- Trial balance
- Profit and loss
- Balance sheet
- Cash flow statements
- MIS pack with variance analysis
- Compliance evidence
- Challans and e filing receipt for GST, TDS, PF, ESI, PT, and ITR
- Reconciliations
- Bank reconciliation
- Vendor and customer ledgers
- GST 2B reconciliation with books
- TDS ledgers
- Year end support
- Year end schedules for audit and ITR
For deliverable expectations and scope framing, refer to cost accounting vs managed accounting, what are managed services in accounting, and setting up accounting services in India guide.
AI dashboards for visibility, not DIY accounting
The AI dashboard is your window into progress and accuracy, not a replacement for a CA. It shows what is pending, what is cleared, the health of reconciliations, next due dates, and any exceptions that need your attention. Your CA team still prepares workings, validates GST 2B, computes TDS, reconciles bank and ledgers, drafts returns, and files only after your approval.
This keeps control with professionals, while giving founders comfort and transparency without adding workload.
FAQ
What does a CA led Virtual Accounting model actually do for me every month
A CA led model records transactions from your source documents, reconciles bank, vendor, customer, GST and TDS, prepares and files GST and TDS returns after your approval, closes the month with trial balance, profit and loss, balance sheet, and issues an MIS pack with cash flow views. You receive challans and e filing receipts as evidence, along with reconciled ledgers.
Is this different from hiring a bookkeeper or outsourcing only GST filing
Yes, managed accounting owns the full monthly and quarterly cycle and the outcomes, while a bookkeeper records entries and a narrow outsourcing arrangement files a single return. Managed service delivers reconciled books, MIS, and compliance proofs on a schedule.
What part does the AI dashboard play, and will my founders need to post entries
The AI dashboard shows status, exceptions, and due dates, and it tracks approvals and SLAs. Your founders do not post entries or compute taxes, the CA team does the work and uses the dashboard to keep you informed and in control.
Can the AI dashboard help with cash flow visibility and runway planning
Yes, the dashboard summarizes collections, payables, and burn, and ties back to reconciled books. Many services also offer views similar to a cash flow dashboard and liquidity runway pack, while ensuring numbers are grounded in the monthly close.
How do approvals work so I stay compliant but also in control
The service defines approval checkpoints for GST and TDS filings, along with monthly close sign off. You review summaries and workings via the portal, approve, and the CA team files and archives challans and receipts. This keeps statutory responsibility with you, while the provider does the heavy lifting.
Will the team respond to GST notices or only keep books current
The managed scope usually keeps books and filings current, and supports routine notice responses with facts and reconciliation evidence. Complex litigation or representation is typically out of scope unless contracted separately.
How does an AI enabled Virtual Accounting service like AI Accountant fit into a startup stack
An AI enabled service such as AI Accountant pairs a CA run engine for bookkeeping and compliance with a dashboard that surfaces document requests, reconciliation status, and next due dates. This combination reduces uncertainty for founders, while ensuring a CA signs off before any filing.
What are typical timelines for GST and TDS in a managed setup
GSTR 1 is generally due by the 11th of the following month, GSTR 3B by the 20th, 22nd, or 24th depending on state and category, and TDS quarterly returns by the 31st of April, July, October, and January. The provider sets document cut offs and approval windows to meet these dates.
What controls protect accuracy and audit readiness
Maker checker workflows, automated reconciliations for bank, GST, and TDS, documented trails of filings and approvals, and periodic internal reviews. These controls reduce errors and make year end audits smoother and faster.
Which activities are normally out of scope in managed accounting
Company secretarial and MCA filings, complex litigation and representation, transfer pricing and advanced international tax, ERP implementations and large system projects, inventory operations, and high level CFO strategy unless specifically agreed.
What do I get as evidence and MIS, month after month
You get a trial balance, profit and loss, balance sheet, cash flow statements, an MIS pack with variance views, reconciled ledgers for vendors and customers, bank reconciliation, GST 2B reconciliation, TDS ledgers, and compliance proofs such as challans and e filing receipts.
How is this priced, and how do I evaluate value versus an in house accountant
Pricing usually anchors to monthly transaction volume, number of statutory registrations, and complexity of payroll and MIS. Evaluate the value by looking at SLA adherence, accuracy of reconciliations, timeliness of filings, audit readiness, and the clarity of the MIS. An AI supported CA team often delivers more predictability than a small in house setup.
Can the service integrate with my billing or bank feeds without me granting risky access
Providers typically use controlled data access such as read only statements, secure document portals, and token based connections where applicable. The CA team documents access, logs activity, and retains evidence of every filing to maintain a compliant audit trail.
What happens during onboarding, and how quickly can we get to a clean monthly close
Onboarding covers access to GSTIN and TAN, collection of opening balances and masters, and mapping the chart of accounts to reporting needs. With timely data, most businesses reach a first clean close within one to two cycles, after which MIS and dashboards reflect steady state performance.
