Author Archives: Aristotle Consultancy

Role of a Company Secretary

A company secretary is needed within all types of companies- whether Public Limited Company or Private Limited Company . The role of a company secretary is to carry all administrative functions of a company which includes ensuring board procedures being followed, maintaining all kinds of documents and constantly checking & improving corporate governance policies and enhancing code of business ethics.
A company secretary, therefore, is not considered a cost to the company but has an important role in the working of an organization as a whole. These are:

aristo-blog

Compliances

A company secretary is responsible to be updated with all the company compliances. He is required toensure that the administration of a company is in compliance with statutory and regulatory requirements and that the decisions of the board of directors are being implemented correctly.

Company Law

A company secretary is an expert in corporate laws and thus provides valuable advice to the directors on its key aspects. It helps the organization to take informed decisions.

Company Records

It is necessary for a company to keep a track of all the important company recordstoday to keep working efficiently in future as well.A company secretary, as mentioned before is responsible for maintaining all kinds of documents, whether manual or electronic, which includes company’s statutory registers, minute books and other statutory records.

Benefits to Stakeholder

Every stakeholder has a right to know that the company is being run in compliance to the applicable laws. A company secretary, therefore, is generally the only point of contact for company’s stakeholders. He ensures rights of the stakeholders are protected and also keeps them well informed about the company’s happenings and meetings as well.

Reasons for Outsourcing Company Secretarial Services

Company secretarial services contribute to be one of the most important services an organization needs. It includes ensuring that the organization is in compliance with the administrative requirements. A company secretary ensures that the board procedures are in place and constantly checks& makes improvements to corporate governance policies.

Outsourcing Company Secretarial services were not considered as an equally feasible activity as other functions of business, because organizations always had a fear of sharing their business information with outsiders and believed that it can be managed with the in-house team.

However, majority of companies these days prefer outsourcing company secretarial services because of the following reasons or benefits it offers:

aristo

1.Accurate and Consistent Handling

There is timely and consistent handling of administrative requirements of an organization when these services are outsourced. It enables an organization to have a team of experts who keep a track of records and save the organization from being charged for non-compliance, late document submission or inaccurate reports.

2.Knowledge and Experience

The outsourced team has in-depth knowledge and experience in handling company’s administrative requirements. All the processes are, therefore, done more easily and efficiently with expert knowledge.

3.Cost Effective

Outsourcing company secretarial services save you the cost of hiring and training of in-house team without any compromise on quality. The cost spent on infrastructure, employment taxes and other overhead costs are saved by outsourcing services to third-party. Therefore, money saved can be used to expand the business.

4.Reliability

Having well-trained and experienced team lets you have an expert advice and feedback on how you can improve your business operations. You can rely on them to meet all your requirements without any worry as they will always have solution to your problems.

5.Cut Down Risk Factor

Outsourcing agencies have a team of experts to execute work within stipulated timeframe and help to reduce the penalties and other monetary loss and enhances the goodwill of an organization.

Switching to a New Accounting Firm

Having a good relation of trust and transparency with the accounting firm is very important for an enterprise as they are responsible for assisting in vital financial decision making needs. When that level of understanding or comfort goes away, an enterprise might start considering switchingtheir accounting firm.

However, switching accounting services in the beginning of the year is considered to be beneficial as it avoids the level of complexity in the processes, a business would face if changed in miear.

Reasons for Switching To a New Accounting Firm

Accounting Firm

1. Insufficient Understanding of your Business Basics-

A good understanding of business model of a company is very essential even for an accounting firm to implement accounting processes customized as per business requirement within legal framework. When an accounting firm is not able to grasp the business model or fails to understand your business needs, it results in inefficiency of financial performance.

2. Non-Availability-

Inability to contact with your accounting firm when needed can lead to a lot of frustration and delay in decision making process.

3. Affordability-

When the business feels that they are paying more than the services promised to be offered by the accounting firmor when they feel that they can get same services at much lower cost.

4. Change in Technology –

Industry undergoing changes in terms of technology require latest up-to-date software for their business. Therefore, when the software used by one accounting firm becomes obsolete or outdated, you might want to switch your services with them.

Pros and Cons of Switching Accounting Firms

Pros:

•Save Money –

There are firms which might be providing same services with equal efficiency at much lower cost than your current accounting firm. Therefore, switching to that firm might result in optimum utilization of moneyfor your business.

•New Ways of Performing –

When switching to a new accounting firm, business evaluates and looks for the one who has more knowledge and expertise than the previous ones or uses new methods of technology.Introduction of new accounting firms, therefore, can bring in new way of thinking and new ideas to the organization making it work in a more efficient manner.

•Clear Picture of Work –

One of the major reasons (non-availability), for switching goes away when the new firm understands the required scope of work and ways to be available for the needs of the business at all times.

Cons:

•Full Knowledge of Business –

The current accountant knows everything of your business. All the needs and objectives of the business are already known to the accounting firm. Switching might lead to explaining everything from scratch which can be time consuming.

•Training –

Although switching might result in less upfront cost in the long run, you might face some extra indirect costs initially such as training of new firm and making them understand the business.

•Disturbance in Organization Structure –

Sometimes, handover period creates disturbance in the current working situation because no new projects can be undertaken in that period. It takes time for a new firm to understand the business and its objectives. Also, ongoing projects also get delayed in the process of switching.

•Risk –

There is always a certain level of risk attached to working with any new association which depends entirely on its way of working with the business. It’s arduous to evaluate its actual capability in a couple of months.

GST Regime: Implementation of E-Way Bill

Under the Goods and Service Tax (GST) Regime, the GST council on its 24th meeting decided to implement e-way bill on a voluntary basis from January 16 and compulsorily from February 1. But due to tech glitches, government has decided to extend the trial phase, both for inter and intra-state and make it compulsory from a date to be announced soon.

What is an E-Way Bill?

E-way bill is an electronically generated document required to be generated online for transportation of goods of more than Rs.50,000/-, whether inter-state or intra-state. It replaces the way bill used earlier under the VAT regime as physical document for the movement of goods.

Who is responsible to generate E-way bill?

1. If you are a registered person whether consignor or consignee, you would have to generate the e-way bill in form GST EWB 01 electronically on the common portal after furnishing information in Part B of form GST EWB 01.

2. If the registered person hands over goods to the transporter without generating e-way bill, it would become responsibility of the transporter to do so.

3. If you are not registered under GST, then you would be required to generate the e-way bill yourself or through the transporter who is transporting goods through the same form GST EWB 01.

4. Whereas, if you are unregistered and supplies goods to a registered person, and the same is known to both the parties at the time of commencement of goods, then it would be deemed as movement of goods by the registered person and the receiver will be required to ensure that all the compliances are met as applicable to the supplier.

E-Way Bill

Note: Part B of e way bill is not required to be filed where the distance between the consigner or consignee and the transporter is less than 10 km and the transport is within the same state.

Documents/Details required to generate E-way bill

a) Invoice/Bill of Supply/Challan related to the consignment of goods.
b) If goods are transported by road, then transporter id or vehicle number is required.
c) If goods are transported by rail, air or ship, then transporter id, transport documentation number and document date is required.

When is e-way bill not required to be generated

E-way bill is not required to be generated in following cases:

a) The mode of transport is non-motor vehicle.
b) Goods transported from port, airport, air cargo complex or land customs station to inland container deport (ICD) or Container freight station (CFS) for clearance by customs.
c) Transportation of goods specified as exempted from time to time.

Validity of E-way bill

E-way bill is valid for a period based on distance travelled by goods. Validity is calculated from the date and time of generation of e-way bill-

Distance Validity of E-Way bill
Less than 100 km. 1 day
For any additional 100 km. or part thereof Additional 1 day

In circumstances of exceptional nature, where the goods cannot be transported within the validity period of the e-way bill, the transporter may generate another e-way bill after updating the details in part B of Form GST EWB 01.

Transporter Responsibilities

a) Transporter will be required to generate e-way bill based on invoice or delivery challan, if consigner or consignee has not generated the e-way bill and the value of consignment is more than Rs. 50,000/-.

b) Any transporter transferring goods from one conveyance to another in the course of transit shall before such transfer and further movement of goods, update the detail of the conveyance in the e-way bill on GST portal.

c) In case multiple consignments are transported in one conveyance, transporter shall indicate the serial number of each individually generated e-way bill in respect of each such consignment and a consolidated e-way bill in form GST EWB 02 may be generated by him on GST portal before movement of goods.

FORM GST EWB-02
(See Rule 138)
Consolidated E-Way bill

Number of E-Way Bills

E-Way Bill Number

Benefits of E-way Bill

1. It is believed that e-way bill will eventually boost GST compliance as through this technology government will get to know who hasn’t filed a GST return after moving goods from one place to another. They want to make e-way filing a habit to be adopted by every concerned person with movement of goods.Through this every trader will have account for purchase and sale which will help make a more credible GDP figure.

2. It is also believed that e-way bill system will result in ‘no’ inspector-raj as the vehicles carrying goods would be stopped only once en route to check if goods being transported are accompanied by e-way bill or not. Also, once it is stopped it will not face any further inspections along the rest of its route, even if it is traversed multiple states. This will significantly speed up the time for transport operators.

3. The number of exemptions associated with the requirement of e-way bill is also extensive, including about 50% of the CPI (Consumer Price Index) basket of goods. The states who had already implemented way bills similar to e-way bills under VAT regime saw a relevant jump in their revenue after implementing it.

We offer e-way bill generation services to our clients along with accounting outsourcing services . The team manages their accounts as well as their e-way bills to help them work smoothly and efficiently.

Challenges Faced During Lead Generation

Lead Generation is considered one of the most important aspects of business growth, which cannot be avoided, especially, if you are a small business enterprise.

It is a marketing process that helps in stimulating and capturing interest in a product or service for the purpose of developing sales pipeline.

Being one of the most important aspects, it is equally daunting and complicating task to carry. And if not carried properly it can lead to various difficulties for your business. Therefore, this process needs a good amount of planning and strategizing.

With increasing competition in markets and interests of consumers, it has become more important to invest in B2B lead generation processes. It is,therefore,a task to choose the appropriate channel for lead generation out of a large number of channels available and focus on it with full efficiency.

Some of the common challenges faced during lead generation are

1. Lack of Insight

Lack of insight leads to not finding the right strategy. Also, a very good strategy for generating business can go in vain if all important information relating to your target customer is not collected diligently. This might also happen if you do not have a good marketing team or a team with less experience and expertise in this field. Therefore, it is necessary to do all the market researches efficiently before coming to any strategy.

2. Lack of Knowledge

Before investing in any lead generation campaign it is important to know how to track or check the effectiveness of a campaign. Without having required knowledge, the whole campaign goes waste. Therefore, objectives must be clear before making any decision.
Also, if you do not have enough resources or capabilities to analyse the progress of a campaign, it must be outsourced to the respective service provider. For example:

3. Lack of Resources

Not having enough resources to be able to answer to all the queries asked by leads during the process of lead generation can cause the business to lose target customers which in turn hampers the image of your business in front of other clients.

4. Ineffective Lead Generation Campaign

Running a campaign similar to that of your competitors may not always turn out to be effective. Every business has different requirements and what works for one business does not always mean that it will work for your business too.

Therefore, utilizing good amount of time in planning and strategizing your campaign according to the needs of your business is considered to be an effective process.

5. Lack of Data or Expertise

Neither having too much data nor having very little data is desirable. But because of increase in digitalization, you mightget access to a lot of data which then should be used appropriately by the team. For this, you should have the expertise to convert raw data into something which can be used for lead generation. But this gets difficult as small business does not have enough in-house resources, to solve this problem you should hire services of lead generation expert.

Therefore, you should keep in mind these few steps for the having a successful lead generation: start simple, focus on few, document and record, analyse progress and repeat.