Karnataka has once again taken a forward-looking step with the Karnataka Global Capability Centre, GCC Policy 2024 to 2029. The policy is aimed at strengthening Karnataka’s position as one of the most preferred destinations for global companies looking to set up or expand their capability centres in India.

Over the last two decades, GCCs have moved far beyond the earlier concept of back office support centres. Today, they handle technology, research, finance, analytics, product development, artificial intelligence, cybersecurity, global operations and strategic functions for multinational companies. This shift makes GCCs an important part of India’s services and innovation economy.

Karnataka, particularly Bengaluru, already enjoys a strong advantage in this space. The State has a deep talent pool, strong startup ecosystem, technology focused culture, international connectivity, commercial real estate and a mature professional services environment. As per the policy, Karnataka is already home to more than 875 GCC units and accounts for a significant share of India’s GCC workforce.

The new policy seeks to build on this foundation. Its targets include attracting 500 new GCCs, taking the total number of GCCs in Karnataka to 1,200 by 2029, creating 3.5 lakh new jobs and generating US$50 billion economic output through GCCs.

For global companies, this is not merely an incentive policy. It is an opportunity to evaluate Karnataka as a strategic base for technology, finance, compliance, analytics, R&D and global business operations.

However, setting up a GCC requires careful planning around entity structure, tax, transfer pricing, FEMA, employment laws, accounting, payroll, statutory compliance and ongoing governance.

For more details including registration of GCC, you can reach out to prasad@balakrishnaandco.com or WhatsApp to CA Kumar Prasad on 9187480260.

The Karnataka GCC Policy 2024 to 2029 is a welcome development for multinational companies planning to set up or expand their operations in India. It recognises the growing role of Global Capability Centres (GCC), in driving innovation, employment, digital transformation and high value business services.

A GCC is no longer only a cost saving centre. Many global companies now use their India centres for technology development, finance and accounting, product engineering, research, data analytics, compliance support, artificial intelligence, customer operations and global shared services. This makes the choice of location, structure and compliance framework very important.

Karnataka has positioned itself strongly for this opportunity. The policy speaks about talent development, collaboration with the local innovation ecosystem, infrastructure support, incentives, regulatory easing, global innovation districts, an innovation fund, AI centre of excellence, internship support and a Beyond Bengaluru package. These measures are intended to support both large global companies and emerging GCC models.

For a foreign company, the first question is usually whether to establish a subsidiary, branch office, liaison office, LLP or another form of presence in India. In most GCC cases, a private limited company is usually preferred because it provides a clear legal structure for hiring employees, entering into contracts, raising invoices, receiving funds from the parent entity and complying with Indian laws.

The second important area is Transfer Pricing. Since the Indian entity generally provides services to its foreign parent or group entities, the pricing model, mark up, inter company agreement and documentation should be designed carefully from the beginning.

Apart from this, companies should plan for payroll, GST, TDS, FEMA reporting, statutory audit, ROC filings, employment law compliances, accounting systems and internal controls.

A well-structured GCC can become a long term strategic asset for the global group.

For more details including registration of GCC, you can reach out to prasad@balakrishnaandco.com or WhatsApp to CA Kumar Prasad on 9187480260.

Balakrishna & Co., Chartered Accountants — 37+ Years of Experience in Complex Tax & Compliance Matters

Wilson Garden, Bangalore | prakasha@balakrishnaandco.com | +91 86182 59712

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Is Your Business Stuck with Messy Books, Missed Deadlines, or a Finance Function That Has Fallen Apart?

Many businesses — startups, private limited companies, LLPs, and SMEs — reach a point where their accounting and compliance situation becomes a serious problem:

• Books of accounts not updated for months or even years
• GST returns filed late, accumulated interest and late fees
• TDS not deducted or deposited, leading to notices from the Income Tax Department
• EPF, ESI or Professional Tax payments missed, risking penalties and prosecution
• Accounts maintained informally by an in-house bookkeeper with no CA oversight
• No MIS reports or financial dashboards — management is flying blind
• Statutory audit overdue because books are not ready
• A previous CA or accountant has left and records are incomplete or in a mess

If any of this describes your current situation, you are not alone. And the good news is — it is entirely fixable.

At Balakrishna & Co., Chartered Accountants, we specialise in stepping into exactly these situations. We assess, clean up, and take over your complete accounting and compliance function — then maintain it to a professional standard going forward. 

 

Virtual CFO Services for Startup

Startups often reach a stage where founders need professional financial oversight but are not yet ready to hire a full-time Chief Financial Officer. A Virtual CFO provides the expertise of an experienced finance leader at a fraction of the cost of a full-time CFO. Whether you are an early-stage startup, venture-funded company, SaaS business, technology startup, consulting firm, or ecommerce business, our Virtual CFO service provides the financial leadership required to support sustainable growth while ensuring complete statutory compliance. 

 

Virtual CFO Services for Foreign-Owned Companies and Overseas Promoters

Foreign promoters establishing or operating businesses in India often face significant challenges in understanding and monitoring India's complex compliance framework. GST, TDS, payroll compliance, ROC filings, income tax obligations, FEMA regulations, and banking compliance can be difficult to supervise remotely.

Balakrishna & Co. acts as a trusted compliance and finance partner for foreign-owned companies operating in India. We provide a fully outsourced finance function that allows overseas promoters to focus on business operations while we manage accounting, taxation, payroll, statutory compliance, and financial reporting.

Clients from the United States, United Kingdom, Singapore, UAE, Australia, Canada, and Europe rely on us to manage their India compliance requirements with transparency, accountability, and professional oversight.

 

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What Is a Virtual CFO and Accounting Outsourcing Service?

A Virtual CFO (Chief Financial Officer) is a qualified Chartered Accountant who delivers CFO-level financial oversight, strategic guidance, and end-to-end compliance management for your business — without the cost of a full-time hire.

Accounting outsourcing means your complete bookkeeping, financial reporting, payroll processing, and statutory compliance is handled by a dedicated CA firm, not an in-house bookkeeper working without supervision.

When you engage Balakrishna & Co. as your Virtual CFO and compliance partner, you gain:

• A CA-supervised accounting team managing your entire finance function
• Cloud-based and desktop accounting on Tally or Zoho Books, as per your preference
• AI-assisted accounting workflows that streamline routine processes and improve accuracy
• Managed banking operations with maker-checker facility — we handle payment uploads, you authorise
• End-to-end statutory compliance — GST, TDS, EPF, ESI, Professional Tax, ROC, Income Tax
• MIS reports and financial dashboards for informed management decisions
• Audit-ready and investor-ready books, maintained at all times

You provide the invoices, bills, and bank statements. We handle everything else.

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Our Technology Platform — Tally, Zoho Books & AI-Powered Accounting

One of the most common questions business owners ask is: "Which accounting software do you use?"

We are not locked into a single platform. We work with the tools that best suit your business needs and existing setup.

 

Tally (Desktop Version)

For businesses that prefer Tally Prime or Tally ERP 9 — the most widely used accounting software in India — we maintain your books on the desktop version at your office or on a shared/remote server. Tally is ideal for businesses that:

• Already have a Tally licence and want to continue on the same platform
• Require GST-ready invoicing, manufacturing, or inventory management features
• Need multi-branch or multi-company books managed in a single environment
• Prefer a trusted, India-specific platform for statutory compliance and audit

Our team manages your Tally data files, maintains regular backups, and ensures every statutory report — GST, TDS, payroll — is generated accurately from properly maintained books.

 

Zoho Books (Online Cloud Accounting)

For businesses that prefer a cloud-based, always-accessible accounting platform, we use Zoho Books — one of India's leading online accounting solutions. Zoho Books is ideal for businesses that:

• Want real-time visibility into financials from anywhere
• Have remote teams, multiple locations, or a distributed management setup
• Prefer automated bank feeds, digital invoice management, and online collaboration
• Need seamless integration with GST portal, payroll, and other Zoho suite products

With Zoho Books, you can log in at any time and see your current financial position, outstanding receivables, and compliance status — while our team handles all the data entry, reconciliation, and filings in the background.

 

AI-Powered Accounting — Streamlining Routine Processes

We have integrated AI accounting tools into our workflow to reduce manual errors, eliminate repetitive data entry, and speed up routine processes. This includes:

• Automated invoice capture and data extraction — vendor bills and sales invoices are digitally processed, reducing manual keying errors
• Bank statement reconciliation powered by intelligent matching algorithms — reducing the time for monthly reconciliation from days to hours
• AI-assisted GST ITC reconciliation — automatically matching GSTR-2B data with purchase records to identify mismatches early
• Automated TDS applicability checks on vendor payments — flagging transactions where TDS should be deducted
• Smart compliance reminders and due date tracking — ensuring no filing deadline is ever missed
• Automated customer outstanding reminders — the system tracks your debtor ageing and automatically sends periodic reminders to customers with overdue balances, reducing the time your management spends chasing receivables and improving cash flow without any manual follow-up
• Rule-based transaction categorisation and auto-entry passing — we configure accounting rules so that recurring transactions (bank charges, salary credits, vendor payments, statutory dues) are automatically categorised and journal entries are passed without manual intervention, ensuring consistency and speed in bookkeeping
• Audit software exception reports — we use dedicated audit review software to periodically generate exception reports that flag unusual transactions, duplicate entries, ledger anomalies, and policy deviations. Our CA team reviews these reports and takes timely corrective action, providing an internal audit layer within the routine accounting process
• Payroll software automation — payroll processing is automated through GreatHR, Razorpay Payroll, or Zoho Payroll (depending on your requirement), handling attendance data, leave balances, salary computation, payslip generation, and statutory deduction calculation — reducing payroll processing time and eliminating spreadsheet errors

The result: faster turnaround, fewer errors, and a more responsive accounting team — without compromising on CA-level review and oversight. Every AI-assisted output is reviewed and approved by a qualified Chartered Accountant before any filing or report is finalised.

 

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Managed Banking Operations — Maker-Checker Facility

For businesses that want to go one step further in delegating their finance function, we offer managed banking operations using your bank's Maker-Checker facility.

What Is Maker-Checker in Banking?

The Maker-Checker facility is a dual-authorisation payment workflow offered by most corporate internet banking platforms (HDFC, ICICI, Axis, SBI, Kotak, Yes Bank, and others). It works as follows:

• A Maker (in this case, our team) logs into the company's banking portal and creates/uploads payment instructions — vendor payments, statutory dues, salary transfers, TDS challans, EPF/ESI payments, etc.
• A Checker/Authoriser (a designated director, owner, or finance head from your side) reviews the uploaded payments and approves or rejects each transaction independently
• The actual debit from your account happens only after the authorised person approves — our team never has any authority to execute or release funds

 

How We Handle It

When you enable Maker-Checker access for our firm:

1. We receive all relevant documents — vendor invoices, salary sheets, statutory payment challans, and payment advice
2. We review each document — verifying vendor details, amounts, TDS applicability, GST compliance, and payment terms
3. We upload the payment instructions on your internet banking portal as the Maker
4. We send you a summary of all pending payments with supporting documents for your review
5. Your authorised signatory reviews and approves each payment — with full visibility into what is being paid and why
6. After approval, the bank processes the payment automatically

 

Why This Matters for Business Owners

This arrangement gives you the best of both worlds — complete delegation of the preparation, verification, and uploading of payments, while retaining absolute control over fund release. Your money never moves without your explicit approval.

It is particularly valuable for:

• Founders and directors who are travelling or busy but need payments processed on time
• Businesses with multiple payment obligations every month — vendors, salaries, TDS, EPF, GST — that are time-sensitive
• Companies where the previous bookkeeper or accountant had unchecked banking access and management wants tighter controls
• Businesses where statutory payment defaults (late TDS deposit, late EPF, late GST payment) have been a recurring problem

This facility brings process discipline, transparency, and accountability into your banking operations — managed by a CA firm, not an unsupervised employee.

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Complete Scope of Services

1. Books Cleanup & Catch-Up Accounting

If your books are not updated — whether for a few months or a few years — we begin with a structured cleanup:

• Assessment of existing books, identification of gaps, errors, and missing entries
• Catch-up accounting for all pending periods — entering all transactions from source documents
• Bank reconciliation for all prior periods to establish a clean opening balance
• Correction of incorrectly booked entries, duplicate entries, and ledger misclassifications
• Reconstruction of books where records are incomplete, using bank statements and available documents
• Preparation of a reconciled Balance Sheet and P&L before going live on a regular maintenance cycle

This cleanup is done as a one-time engagement priced separately, after which regular monthly maintenance begins.

 

2. Bookkeeping, Accounting & Financial Reporting

Once books are in order, we maintain them on a continuous basis:

• Recording of all business transactions — purchases, sales, receipts, and payments — based on documents provided
• Maintenance of books in Tally (desktop) or Zoho Books (cloud), as mutually agreed
• Monthly bank reconciliation for all bank accounts
• Reconciliation of debtors and creditors ledgers
• Fixed asset register and depreciation schedules as per the Companies Act and Income Tax Act
• Monthly Profit & Loss Account, Balance Sheet, and Trial Balance
• Quarterly cash flow and fund flow statements
• Revenue vs. expense analysis with management commentary
• Year-end financial statement finalisation and statutory audit support

 

3. Payroll Processing, Salary Structuring & Statutory Compliance

Payroll is one of the most misunderstood services in the finance outsourcing space. Many business owners assume payroll processing simply means calculating salaries based on attendance and transferring money to employee bank accounts at the end of the month. In reality, payroll management is a complex, multi-step compliance function that spans the entire financial year — from salary design at the time of hiring, through monthly TDS deductions, to year-end investment verification and Form 16 issuance.

We manage the complete payroll lifecycle using dedicated payroll software — GreatHR, Razorpay Payroll, or Zoho Payroll — depending on your existing setup and business preference. All three platforms automate routine payroll processes, reduce errors, and give employees self-service access to their own payroll information. We recommend the right platform based on your headcount, existing software ecosystem, and banking arrangements. Here is what our full payroll service covers:

 

Salary Structure Design and Tax Optimisation

Before processing even a single month's payroll, we design a tax-efficient salary structure for each employee grade. A well-structured salary reduces the employee's income tax liability through exempt components (HRA, Leave Travel Allowance, meal coupons, standard deduction) and keeps the employer's cost of employment efficient. We also advise each employee individually on whether the new tax regime or the old tax regime is more beneficial based on their specific income, deductions, and investment profile.

 

Appointment Letters and HR Documentation

Using the payroll platform in use for your account, we issue digitally formatted appointment letters, offer letters, confirmation letters, increment letters, and Full & Final settlement letters — ensuring every employment event is properly documented and on record.

 

Beginning-of-Year Income Tax Declaration

At the start of each financial year (April), we collect income tax declarations from every employee through GreatHR's employee self-service portal. Each employee declares their proposed investments (under Section 80C, 80D, HRA, etc.) and the applicable tax regime. Based on these declarations, we compute the estimated annual TDS liability for each employee and determine the monthly TDS amount to be deducted under Section 192 of the Income Tax Act.

 

Monthly Payroll Processing

Each month, we process payroll on GreatHR based on attendance data, approved leave records, arrears, and any salary revisions. The software computes:

• Gross salary, applicable allowances, and deductions
• TDS under Section 192 based on the year-to-date income and remaining months
• EPF and ESI contributions (employee and employer share)
• Professional Tax deduction (Karnataka)
• Net pay after all deductions

Digitally formatted payslips are generated automatically and employees can log in to their GreatHR portal to download their payslip, view their tax computation, and track their year-to-date deductions — without needing to email HR or the accounts team for basic payroll information.

 

Monthly TDS Payment

The TDS deducted from salaries is paid to the government by the 7th of the following month through challan payment coordination. This is tracked and managed as part of our compliance calendar without any manual reminder required from your side.

 

End-of-Year Investment Proof Collection and TDS Recalculation

Before the end of the financial year (typically January–February), we collect actual investment proofs from all employees through the GreatHR portal — including LIC premium receipts, home loan certificates, rent receipts, mutual fund statements, and medical insurance premium receipts. We then recalculate the actual TDS liability for the year for each employee, comparing it against the TDS already deducted. Any shortfall is adjusted in the remaining months' salary; any excess is adjusted or refunded through the year-end salary.

 

Quarterly eTDS Return Filing (Form 24Q)

Salary TDS is reported to the Income Tax Department through Form 24Q, filed every quarter (July, October, January, and May). This return maps every employee's salary, TDS deducted, and PAN. Accurate quarterly filing is critical — it is the basis on which TDS credit appears in each employee's Form 26AS and AIS, and without which Form 16 cannot be generated.

 

Form 16 Issuance

At the end of the financial year, we prepare and issue Form 16 (Part A and Part B) to all employees. Part A is downloaded from the TRACES portal and reflects the TDS deposited. Part B is prepared by us and details the salary breakup, exemptions, deductions, and final tax computation. Employees rely on Form 16 for their personal ITR filing — making this one of the most important year-end deliverables.

 

Full & Final Settlement

For employees who resign or are terminated, we process Full & Final settlement — computing pending salary, notice pay recovery or payment, leave encashment, gratuity (if applicable), and final TDS on settlement amount — and issue the settlement statement and Form 16 / Form 12B as applicable.

 

EPF, ESI, and Professional Tax

• Monthly EPF computation and ECR (Electronic Challan cum Return) filing on the EPFO portal, covering both employee and employer contributions
• Monthly ESI computation and return filing on the ESIC portal
• Monthly Professional Tax deduction from salary, payment, and return filing (Karnataka)

This end-to-end payroll management — from salary design to TDS filing to Form 16 — is what professional payroll outsourcing to a CA firm actually means. It is far beyond merely transferring salaries.

 

4. GST Compliance

Our GST services cover the full compliance cycle — registration to annual return:

• GST registration and setup, including multi-state registrations
• E-invoicing compliance — businesses with aggregate turnover exceeding the notified threshold are required to generate e-invoices through the Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN) and QR code for every B2B invoice. We set up and manage your e-invoicing process, integrate it with your accounting system (Tally or Zoho Books), and ensure every invoice is IRP-validated before dispatch to customers. Non-compliance with e-invoicing requirements renders invoices invalid for ITC purposes for your buyers and exposes you to penalties under the GST law
• Monthly/quarterly GSTR-1 (outward supplies) and GSTR-3B (summary return) filing
• Monthly ITC reconciliation with GSTR-2B and purchase register — this is one of the most financially significant reconciliation exercises in GST compliance. When ITC appearing in GSTR-2B falls short of what is in your purchase register, it means one or more of your vendors have not uploaded their invoices or have not filed their returns. We identify these gaps vendor-by-vendor, follow up with your procurement team to chase non-compliant vendors, and ensure you are not losing GST credit that is rightfully yours. Recovering ITC that would otherwise lapse translates directly into savings in your GST cash outflow
• GSTR-9 (Annual Return) and GSTR-9C (Reconciliation Statement) filing
• Advisory on e-way bill compliance, place of supply rules, and reverse charge mechanism
• Periodic GST compliance health checks to identify risks and optimisation opportunities

 

5. TDS Compliance

We manage TDS obligations across all applicable sections of the Income Tax Act, 1961:

• TDS computation on salary (Sec 192), contractor payments (Sec 194C), professional fees (Sec 194J), rent (Sec 194I), and all other applicable sections
• Challan generation and payment coordination by the 7th of each subsequent month
• Quarterly TDS return filing — Form 24Q (salary) and Form 26Q (non-salary)
• Issuance of TDS certificates — Form 16 and Form 16A
• Quarterly reconciliation of TDS with Form 26AS and AIS
• Correction filings for TDS return revisions

 

6. Income Tax Return & Tax Audit

• Filing of the company's Income Tax Return (ITR-6) for the relevant Assessment Year
• Tax Audit Report (Form 3CA-3CD / 3CB-3CD), if applicable
• Quarterly advance tax computation and payment coordination
• TDS reconciliation with Form 26AS and AIS before filing
• Lower TDS Certificate (Form 13) assistance, where applicable

 

7. MIS Reporting & Management Dashboards

We prepare structured monthly and quarterly MIS packs for management review:

• Profit & Loss, Balance Sheet, Cash Flow, and key financial ratios
• Revenue metrics, expense analytics, and cash position dashboards
• Budget vs. actuals analysis with variance commentary
• Working capital analysis and cash runway reporting
• Customised department-wise or project-wise cost tracking

 

8. Secretarial & ROC Compliance

Good corporate governance requires not just filing returns but maintaining the underlying records that support those filings. Our secretarial compliance service covers:

• Maintenance of Minutes of Board Meetings and General Meetings — every Board Meeting and General Meeting must be documented in properly structured minutes, signed by the Chairperson, and entered in the Minutes Book within 30 days of the meeting (Companies Act, 2013). We draft the minutes, circulate them for approval, and maintain the physical and digital Minutes Book — a record that is invariably called for during statutory audits, due diligence, and regulatory inspections
• Maintenance of all statutory registers under the Companies Act, 2013 — Register of Members, Register of Directors, Register of Charges, and others
• Filing of MCA/ROC annual returns — Form AOC-4 (Financial Statements) and Form MGT-7 (Annual Return)
• Event-based filings — change of directors, registered office, share allotment, charge creation, and other corporate events
• Board Meeting support — agenda preparation, financial and compliance presentation packs, draft resolutions
• Director's Report and annexures preparation

 

9. Agreements, Policies & HR Documentation

• Employment agreements, NDA templates, offer and appointment letters
• Vendor service agreements, MoUs, and Master Service Agreements (MSA)
• HR policy setup — Leave Policy, WFH Policy, POSH Policy, Code of Conduct, Expense Reimbursement Policy
• Employee Handbook, IT Policy, and DPDP Act-aligned Data Protection Policy

 

10. Ongoing Tax Advisory & Strategic Guidance

• Direct tax and GST implications of business decisions — new contracts, consultant hires, vendor payments, overseas transactions
• Advance tax planning and optimisation
• Withholding tax applicability on vendor and service provider payments
• Tax briefings on key Budget changes and their business impact
• Representation before tax authorities (scrutiny/faceless assessments) available as an add-on

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Why Choose Balakrishna & Co.?

37+ Years of Experience — Our firm has been handling complex tax and compliance matters for businesses across Bangalore for over three decades. We bring depth, judgment, and institutional knowledge that a junior bookkeeper simply cannot.

CA-Led Oversight on Every File — Your account is managed by qualified Chartered Accountants. Every return, every report, every advice note carries CA-level review — not just data entry by untrained staff.

Specialised in Taxation — We are a taxation-first firm. Your books are not just maintained — they are maintained with GST compliance, TDS accuracy, and income tax audit-readiness built in from day one.

Technology-Enabled Practice — We use Tally, Zoho Books, and AI-assisted accounting workflows to deliver faster turnarounds and fewer errors, without compromising on CA oversight.

Managed Banking with Full Owner Control — Our maker-checker banking service gives you complete delegation without giving up control. Every payment is prepared by us, authorised by you.

No Missed Deadlines — We maintain a structured compliance calendar covering every due date under every applicable law. You will never incur a preventable late fee or notice again.

Scrutiny & Notice Representation — For income tax scrutiny notices, faceless assessments, and Section 142(1) or 143(2) proceedings, our firm's specialised expertise is available to defend your interests.

 

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Who Should Use This Service?

This service is designed for:

• Startups and early-stage companies that need CA-backed financial management without a full-time team
• Private limited companies and LLPs that want seamless monthly compliance without gaps or defaults
• SMEs with messy or outdated books that need a structured cleanup and fresh start
• Businesses whose in-house accountant has left, leaving behind incomplete or unreliable records
• Companies that have accumulated GST, TDS, or EPF defaults and need to regularise their position
• Founder-led businesses that want to delegate the entire finance function to a trusted CA firm
• Companies preparing for fundraising or audit, who need clean, investor-ready books and a compliance track record
• Foreign promoters and overseas investors setting up or operating in India — this is a segment we serve with particular depth. A foreign promoter — whether from the US, UK, Singapore, UAE, or elsewhere — typically does not have working knowledge of India's layered tax and compliance framework: GST, TDS, EPF, ROC filings, FEMA, and income tax. Relying on a local in-house accountant for this is risky, because the promoter has no way to verify whether compliance is being done correctly or completely. A regulated CA firm, bound by the professional code of conduct of the Institute of Chartered Accountants of India (ICAI), provides the accountability and assurance that an in-house employee simply cannot. By outsourcing to Balakrishna & Co., foreign promoters can place full trust in a regulated professional to manage their Indian statutory obligations — freeing them to focus entirely on their business, without the distraction and anxiety of navigating unfamiliar compliance requirements from thousands of kilometres away

 

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Frequently Asked Questions (FAQ)

General — About the Service

Q: What exactly does "accounting outsourcing" mean? Will I lose control of my finances?

No — outsourcing your accounting does not mean losing control. It means transferring the execution of accounting, compliance, and financial management to a qualified CA firm, while you retain full oversight and decision-making authority. You will have access to your books at all times, receive regular MIS reports, and can request any financial information whenever needed. Think of it as hiring a dedicated finance team — except it is a CA firm, not an employee.

 

Q: We are a small private limited company. Is a Virtual CFO service relevant for us?

Absolutely. In fact, small private limited companies benefit the most from Virtual CFO services. A small company cannot afford a full-time CFO, yet it faces the same statutory compliance obligations as a large company — GST, TDS, EPF, ROC filings, income tax returns, and audit. A Virtual CFO service gives you CA-level financial management at a fraction of the cost of a salaried hire.

 

Q: Why Outsource Accounting to a Chartered Accountant Firm Instead of Hiring an Accountant?

Many businesses initially hire an in-house accountant to manage bookkeeping and compliance. While this may appear economical, it often creates operational and compliance risks.

An individual accountant may have limited exposure to GST, TDS, payroll regulations, ROC compliance, tax audits, and changing tax laws. If the accountant resigns unexpectedly, valuable institutional knowledge, records, passwords, and compliance history may be lost.

By outsourcing to Balakrishna & Co., businesses benefit from:

• A team of Chartered Accountants and trained accounting professionals
• Continuous supervision and quality review
• Backup resources and continuity of service
• Access to specialist tax and compliance expertise
• Reduced employee costs and HR management burden
• Technology-enabled accounting systems
• Improved compliance controls and reporting
• Faster response to notices, assessments, and audits

Outsourcing provides the combined benefit of accounting expertise, tax knowledge, compliance management, and strategic financial guidance under a single engagement.

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Messy Books & Compliance Defaults

Q: Our accounts have not been updated for the past 1–2 years. Can you help?

Yes. This is one of the most common situations we encounter. We offer a structured catch-up accounting and books cleanup service, where we assess the current state of your records, reconstruct missing entries from source documents and bank statements, reconcile all accounts, and bring your books fully up to date. After cleanup, we transition into regular monthly maintenance. The catch-up work is priced as a one-time engagement based on the volume and complexity of the backlog.

 

Q: We have pending GST returns and outstanding GST liability. What should we do?

Pending GST returns should be filed as quickly as possible to stop the accumulation of late fees and interest. We will assess which returns are pending, compute the outstanding tax and late fees, and file them in the correct sequence (GSTR-1 before GSTR-3B, for each period). We will also reconcile your ITC position for the pending periods. Note that filing pending returns does not automatically undo penalties already incurred, but it stops further accumulation and puts you back in good standing. In cases of significant outstanding dues, we can also advise on settlement and regularisation options.

 

Q: We have not deducted or deposited TDS for several months. What is the consequence, and how do we fix it?

Failure to deduct TDS attracts disallowance of the corresponding expense under the Income Tax Act, and failure to deposit TDS after deduction is a prosecutable offence under Section 276B. Interest under Section 201(1A) applies at 1% per month for non-deduction and 1.5% per month for non-deposit. We will compute all outstanding TDS liability for the defaulted periods, prepare and deposit the TDS with applicable interest, file the belated TDS returns (with applicable late fees under Section 234E), and issue TDS certificates to vendors and employees. Acting early and regularising the position voluntarily significantly reduces the risk of formal proceedings.

 

Q: Our EPF and ESI contributions are in arrears. How serious is this?

EPF and ESI defaults are taken seriously by the respective departments. EPFO can levy damages of up to 25% of the amount in arrears, and ESI non-compliance can attract prosecution. We will compute the arrears, coordinate filing of the pending ECR (for EPF) and returns (for ESI), and advise you on making the payments with applicable interest and damages. Early regularisation, before a departmental inspection or notice, significantly reduces the risk of prosecution.

 

Q: Our previous CA / accountant has left and the records are incomplete. Can you take over?

Yes. We have handled many such transitions. We will conduct a structured handover assessment — reviewing what records exist, what is missing, what filings have been done, and what is outstanding. We will then prepare a gap report and action plan, and systematically fill in the gaps before taking over ongoing maintenance. If access credentials (GST portal, Income Tax portal, TRACES, EPFO, ESIC, MCA) have not been transferred, we will guide you through the recovery and reset process.

 

Q: We received a notice from the Income Tax Department or GST Department. Can you handle it?

Yes. Handling scrutiny notices, faceless assessments, Section 142(1) notices, and departmental correspondence is a core strength of Balakrishna & Co. With 37+ years of experience in complex tax matters, we represent businesses before tax authorities and prepare detailed responses backed by proper documentation. This service is available separately from the regular retainer. For more details, see our article: What to Do When You Receive a Scrutiny Notice Under Section 143(2).

 

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Software & Technology

Q: Which accounting software do you use — Tally or Zoho Books?

We are comfortable with both, and the choice depends on your business needs and existing setup.

Tally (desktop version) is ideal if you already have a Tally licence, prefer a locally installed system, need advanced inventory or manufacturing features, or want the most widely used accounting software in India for audit and compliance purposes. We work with Tally Prime and Tally ERP 9.

Zoho Books (cloud/online) is ideal if you want real-time access to your financials from anywhere, prefer automated bank feeds and a modern interface, or want seamless GST portal integration and online invoice management.

If you do not have a strong preference, we will recommend the right platform based on your business model, size, and the nature of your transactions. We can also migrate your existing Tally data to Zoho Books, or vice versa, if a platform change is desired.

 

Q: What is AI-powered accounting? Is it reliable?

AI accounting refers to the use of artificial intelligence tools to automate routine, repetitive accounting tasks — such as extracting data from invoices, matching bank transactions, reconciling GST ITC data, and flagging TDS-applicable transactions. These tools significantly reduce the time and manual effort involved in routine bookkeeping.

Reliability is maintained through a critical safeguard: every AI-assisted output is reviewed and approved by a qualified Chartered Accountant before any filing or report is finalised. AI handles the volume and repetition; CA judgment handles the accuracy and compliance. This combination delivers the speed of automation with the reliability of professional oversight.

 

Q: Can we see our accounts and financial data at any time?

Yes. If you are on Zoho Books, you have read access to your accounts at all times and can view reports, invoices, and ledgers directly. If you are on Tally, we can share updated data files or generate and send reports on request. Additionally, you receive structured MIS reports — Profit & Loss, Balance Sheet, and compliance dashboards — on a monthly basis regardless of which platform is used.

 

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Banking Operations

Q: What is the maker-checker facility, and how does it work in practice?

The maker-checker facility is a dual-authorisation payment workflow available in most corporate internet banking portals. Our team acts as the Maker — we receive all payment documents (vendor invoices, statutory challans, payroll sheets), review and verify each one, and upload the payment instructions on your internet banking portal. Your designated authorised signatory (Checker) then reviews the pending payments and approves or rejects each transaction. The bank releases the payment only after your authorisation.

In practical terms: we do all the groundwork of verifying amounts, vendors, and compliance before uploading payments — and you spend a few minutes each week or fortnight reviewing and approving, rather than managing the entire payment process yourself. This is far more efficient, more controlled, and far less error-prone than the alternative of chasing an in-house accountant to make payments under time pressure.

 

Q: Do you have access to our bank account funds? Can you transfer money on your own?

No. As the Maker, we can only upload payment instructions — we cannot execute or release any payment independently. The actual debit from your account happens only after your authorised signatory approves the transaction on the bank portal. Your funds are always under your control. This is precisely the security design of the maker-checker system — it enables delegation of preparation while preserving absolute owner control over fund release.

 

Q: Which banks support the maker-checker facility?

Most major corporate internet banking platforms in India support maker-checker workflows, including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank, IndusInd Bank, and State Bank of India (SBI). The specific setup steps vary by bank. We will guide you through the process of enabling this facility and adding our team as a Maker on your account.

 

Q: What payments do you handle through the maker-checker facility?

We handle all routine business payments that are part of our engagement scope — including vendor payments, monthly salary transfers, TDS challans, EPF and ESI payments, GST tax payments, Professional Tax, advance tax, and other statutory dues. Each payment is prepared with proper documentation, verified for accuracy and compliance, and uploaded for your approval before the due date.

 

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GST, TDS & Statutory Compliance

Q: How do you ensure we never miss a GST or TDS filing deadline?

We maintain a detailed, firm-wide compliance calendar covering every due date under every applicable law — GST, TDS, EPF, ESI, Professional Tax, ROC, income tax, and more. For each client, this calendar is tracked with internal reminders set well ahead of each deadline. Our team initiates work on each filing in advance, so we are never in a position of rushing at the last minute because data has not been shared. We also communicate clearly with clients about document submission cutoffs so we have everything we need to file on time.

 

Q: What is ITC reconciliation and why does it matter?

Input Tax Credit (ITC) reconciliation means matching the ITC you have claimed in your GST returns (GSTR-3B) against the credit that is actually available in GSTR-2B — which reflects invoices uploaded by your vendors. Mismatches can arise when vendors have not filed their returns, have filed returns late, or have uploaded incorrect invoice details. The GST law restricts ITC to what appears in GSTR-2B, and excess ITC claims can lead to demand notices, interest, and penalties. Our monthly ITC reconciliation service identifies these mismatches early, allowing us to follow up with vendors or reverse incorrect claims before they become a compliance problem.

 

Q: We have been deducting TDS but not filing returns. Is this a problem?

Yes, this is a significant problem. Even if TDS has been deducted and deposited, failure to file TDS returns (Form 24Q and Form 26Q) means TDS certificates (Form 16 and Form 16A) cannot be generated, and the credit will not appear in the payee's Form 26AS. This causes problems for your vendors and employees who cannot claim credit for TDS deducted from their payments. Additionally, late filing of TDS returns attracts a fee of ₹200 per day under Section 234E. We will file all pending TDS returns immediately, with applicable late fees, and restore your compliance position.

 

Q: Do you handle GSTR-9 (GST Annual Return) filing?

Yes. GSTR-9 is the annual return summarising all transactions and ITC for the full financial year. It requires careful reconciliation of GSTR-1, GSTR-3B, and the books of accounts. We file GSTR-9 as part of our standard compliance retainer. Where GSTR-9C (the reconciliation statement) is also applicable, we prepare and file that as well.

 

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Payroll & HR Compliance

Q: We have employees but have never registered for EPF or ESI. What should we do?

If your headcount and salary levels trigger EPF and ESI applicability (10 or more employees for ESI; 20 or more for EPF, though many employers register voluntarily earlier), you should register immediately. We will assess your applicability, complete the registration on the EPFO and ESIC portals, and advise on the treatment of prior periods. Voluntary registration and proactive disclosure of prior defaults is always treated more favourably than a default discovered during a departmental inspection.

 

Q: We want to restructure employee salaries to minimise income tax. Can you help?

Yes. Salary structuring is one of the most impactful tax planning tools available to both employees and employers. We design tax-optimised salary structures that maximise take-home pay for employees (through HRA, LTA, meal allowance, and other exempt components) while keeping the employer's total cost of employment efficient. We also advise each employee on whether the new tax regime or the old tax regime is more beneficial for their specific income and deduction profile.

 

Q: Which payroll software do you use — GreatHR, Razorpay Payroll, or Zoho Payroll?

We work with all three, and the choice depends on your existing setup and preference. GreatHR is well-suited for mid-sized teams that need a comprehensive HRMS alongside payroll — covering attendance, leave management, employee self-service, and compliance. Razorpay Payroll is a strong fit for startups and tech companies that want direct salary disbursement through the Razorpay banking infrastructure, with automated statutory compliance built in. Zoho Payroll is the natural choice for businesses already using Zoho Books or the broader Zoho suite, given the seamless integration between accounting, payroll, and GST. If you do not have a strong preference, we will recommend the right platform based on your headcount, banking arrangements, and existing software ecosystem. If you are already on one of these platforms, we integrate directly into your current setup.

 

Q: Is our company required to generate e-invoices? What happens if we do not?

E-invoicing is mandatory for all GST-registered businesses whose aggregate annual turnover exceeds the notified threshold (currently ₹5 crore). If your turnover crosses this threshold, every B2B invoice must be uploaded to the Invoice Registration Portal (IRP) and an Invoice Reference Number (IRN) along with a QR code must be obtained before the invoice is issued to the customer. An invoice issued without a valid IRN is not a valid GST invoice — your customer cannot claim Input Tax Credit on it, and you are exposed to penalties under the GST law. We assess your e-invoicing applicability, configure your accounting system (Tally or Zoho Books) for IRP integration, and manage the e-invoicing process as part of our standard GST compliance service.

 

Q: We are a foreign-promoted company. Can we rely on your firm to manage all Indian compliance?

Yes, and this is a service we provide with particular care. Foreign promoters — whether individuals or entities based outside India — face a specific challenge: they do not have working knowledge of India's multi-layered compliance framework, cannot easily supervise an in-house accountant from overseas, and have limited recourse if compliance is being done poorly or not at all. A Chartered Accountant firm regulated by ICAI offers something an in-house accountant cannot: professional accountability, structured processes, and a formal engagement with defined deliverables and responsibilities. We manage the complete Indian compliance of foreign-promoted entities — GST, TDS, EPF, ROC, income tax, FEMA (foreign remittance and investment compliances, in coordination with RBI-authorised consultants where needed) — and provide regular compliance status reports that promoters abroad can review without needing to be physically present. This allows foreign promoters to focus entirely on building their business in India, confident that their regulatory obligations are being managed by a regulated professional firm.

 

Q: What is an audit exception report and how does it help our business?

An audit exception report is generated by our audit review software and flags unusual or anomalous transactions within your books — such as large round-number entries, duplicate payments, vendor payments without corresponding purchase entries, ledger balances that have moved unexpectedly, or transactions that fall outside normal business patterns. These exception reports are reviewed by our CA team periodically, and corrective action is taken — either by adjusting entries, seeking clarification from your team, or flagging items for management attention. This provides a continuous internal audit layer within your routine accounting, catching errors and irregularities before they compound or surface during a statutory audit.

 

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Pricing & Engagement

Q: How much does Virtual CFO and accounting outsourcing cost?

Our fees depend on the size and complexity of your business — the number of transactions, employees, bank accounts, GST registrations, and the specific services required. We offer a structured monthly retainer that covers bookkeeping, payroll, GST, TDS, EPF/ESI, income tax return, MIS reports, and ongoing tax advisory. Please contact us directly for a specific quote tailored to your business.

 

Q: Is there a minimum commitment period?

Our engagement is structured as a continuing retainer with a notice period for termination by either party. There is no requirement for a long minimum lock-in. However, we do ask for a reasonable transition period when either party wishes to exit, to ensure proper handover of records, credentials, and ongoing compliance.

 

Q: What do we need to provide to get started?

To begin a new engagement, we typically need: your company's basic details (PAN, TAN, GSTIN, CIN), existing accounting data files (Tally or Zoho Books), recent bank statements, pending invoices, statutory registration credentials (GST portal, Income Tax portal, TRACES, EPFO, ESIC, MCA), and copies of recent filings (if available). We will conduct an initial assessment of your current compliance status and provide a clear picture of what is pending, what needs to be corrected, and how we will proceed.

 

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Get in Touch

If you are looking for a Chartered Accountant firm in Bangalore to manage your accounting, payroll, GST, TDS, and statutory compliance end-to-end — or if your books are in a mess and you need a trusted CA to clean up and take over — we would be glad to help.

We provide Virtual CFO services, accounting outsourcing, payroll outsourcing, GST compliance, TDS compliance, ROC compliance, bookkeeping services, and finance function outsourcing across Bangalore, including Wilson Garden, Koramangala, HSR Layout, Indiranagar, Whitefield, Electronic City, Sarjapur Road, Marathahalli, JP Nagar, Jayanagar, Bannerghatta Road, Hebbal, Yelahanka, and surrounding areas.

Balakrishna & Co., Chartered Accountants No. 24, 3rd Floor, Above State Bank of India, 10th Cross, Wilson Garden, Bangalore – 560027

prakasha@balakrishnaandco.com 

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Balakrishna & Co. provides Virtual CFO services, accounting outsourcing, payroll processing (GreatHR, Razorpay Payroll, Zoho Payroll), GST compliance, e-invoicing, TDS management, EPF/ESI compliance, secretarial and ROC compliance, and statutory compliance services to startups, private limited companies, LLPs, SMEs, and foreign-promoted companies in Bangalore. With 37+ years of experience in complex tax and compliance matters, we are the trusted CA partner for businesses at every stage of their journey — including those recovering from accounting defaults, missed filings, and compliance backlogs.