Cash & Accounts Administration
(The "If You Mess This Up, You're Jailed" List)
3.1 Bookkeeping Basics
(Or: "How to sleep at night without fearing a midnight tax raid.")
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3.1.1 Voucher Entry
The Spinal Cord of Your Business
"No vouchers = No proof = GST officer's playground."
💡 Battle-Tested Rules:
• The 24-Hour Rule: Record every transaction within one business day
• Golden Trio: Every voucher must have:
1. Dated receipt/bill
2. Payment method (Cash/UPI/Cheque No.)
3. Category tag (Marketing/Rent/Inventory)
• Horror Story: A Kanpur trader couldn't claim ₹18L in expenses during audit because his "vouchers" were WhatsApp messages.
Self-Assessment:
✅ All cash transactions recorded same day?
✅ Digital backup of physical receipts?
✅ Separate personal & business expenses?
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3.1.2 Invoice Generation
(Where Most Startups Get Slaughtered)
GST Invoice Checklist:
Field Cost of Missing It
GSTIN of recipient 100% penalty on tax credit
HSN Code ₹50,000 fine per invoice
Place of Supply Wrong IGST/CGST = Double tax
🔥 Bloodbath Case:
A Ludhiana manufacturer auto-generated invoices without HSN codes - got slapped with ₹7.2L in penalties for just 48 invoices.
Pro Tools:
• Zoho Invoice (Free for <5 users)
• Tally Prime (Gold standard)
• ClearTax (For GST newbies)
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3.1.3 Receipt Tracking
(The Art of Not Losing Money)
Payment Method Risks:
Type Danger Safety Net
Cash "Disappears" easily Signed vouchers + CCTV
Cheque Bounce risk (Section 138 NI Act) Always take post-dated cheque photos
UPI No paper trail Screenshot + reconcile daily
💀 Nightmare Scenario:
A Hyderabad startup's accountant pocketed ₹8K/day for months by deleting UPI payment notifications.
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🛡️ Bookkeeping Health Check
"How bulletproof are you?"
Component 😱 Jail Time 🛠️ Survivable 🛡️ Audit-Proof
Vouchers Shoebox full of crumpled bills Excel sheets Cloud accounting software
Invoices Handwritten on notepad GST-compliant but manual Auto-generated with HSN
Receipts "Trust me bro" system Some UPI screenshots Digital archive + backups
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🚨 Crisis Protocols
"When the taxman cometh:"
Disaster Emergency Fix Prevention
Missing purchase bills Get duplicate from vendor + affidavit Implement bill approval workflow
Wrong GST charged Issue credit note within time limit Use invoice validation tools
Cash shortage Document every paisa movement Go cashless wherever possible
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📌 Pro Tips for Founders
1. The 7-Year Rule: Maintain records for 7 years (Income Tax Act requirement)
2. Three-Person Rule: No single person should handle recording, approval & payment
3. Monthly Ritual: Every 30th, print bank statements and match with books
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🎯 Final Thought
"Your books aren't just for taxes—they're the pulse of your business. No pulse = Dead company walking."
