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Accounting & Payroll Servicesat Floraison

About Floraison

The name reflects our objective of Accelerating Growth. “

Floraison India Compliances Private Limited is a Bangalore-based business consulting organization. As a company which provides integrated consulting services, we partner our clients from the stage of inception to assist them in successfully commencing their operations and further hand-hold them to run their company efficiently.

At Floraison, we strive to cultivate strong relationships with our clients by providing them with solutions, which cater to their precise requirements. Customizability is therefore the essence of all the services provided by us. We believe true success is not just fulfilling our clients' requirements, but exceeding their expectations. And, to be successful, we work as an cohesive team all the way, using the best of tools and methodologies.

Floraison is a member of:

» Confederation of India Industry » Bangalore Chamber of Industry and Commerce » Indo-German Chamber of Commerce

For more information on the company, Please visit us at www.floraison.in

”

DisclaimerThis publication is a product of Floraison India Compliances Private Limited. The items contained herein are provided for general information purposes only. Floraison strives to maintain up-to-date information from its own and other reliable sources; however, no responsibility is accepted for any errors and/or omissions or results of any actions based upon this information, without consulting Floraison first. Though all efforts have been made to ensure the accuracy of the content, the same should not be construed as a statement of law or used for any legal purposes. The information is for reference purposes only and should not be dealt with as advice.

floraison in French means 'flowering'.

Payroll accounting has been the source of

headaches well ever since businesses

started processing payroll But payroll

taxes and payroll processing

requirements are not nearly as complex

as they seem.

”

“

IndexIntroduction Page 1

Set Up Page 2

Accounting & Payroll Implementation Page 2

Compensation Structuring Page 3

Compensation Structuring Services

The Concept behind DesigningCompensation Policies Page 4

Hand Holding Page 5

Accounting & Payroll Support Page 5

Accounting Support Page 5

Accounting Services Page 5

Payroll Support Page 6

Accounting And Payroll Support – The Modules Page 7

Accounting & Payroll Resourcing Page 9

Introductiontarting a business, no matter big or small and managing it efficiently under fluctuating business environment can be such a big challenge that it's easy to overlook the employees’ efforts that brings about success. The hardcore S

reality is that employees want to get paid for their efforts. Well, believe it or not - they do! And paying them involves a lot more than signing a few cheques. You need a system in place that would manage your payroll in a timely and efficient manner. That is what the main function of payroll accounting is. It keeps track of your company's payroll function so that everyone - you, your employees, and the government - is happy at the end of the day.

Payroll services ensure that your company complies with federal and state laws pertaining to payroll. Another big advantage is that payroll services are responsible for keeping track of each employee's accumulated earnings, tax withholdings, and other information. They also take care of direct deposits, salary adjustments, quarterly tax payments and all of the other details that can distract you from the important job of leading your company.

Taking all the aforementioned factors into consideration, Floraison offers a wide range of Accounting and Payroll Services. Following is an illustration depicting the A&P services at Floraison.

Set Up

Hand holding

Accounting and Payroll Implementation

Compensation Structuring

Accounting and Payroll Support

Accounting and Payroll Resourcing

Page 1

Set Up

Accounting & Payroll Implementation

hen a new organisation is established, the last thing the team really W

wants to think about is how their accounting system will look like.

It is much easier to design a useful accounting system at the beginning of the process rather than somewhere in the middle.

We, at Floraison, offer accounting and payroll setup services to our clients who are on the verge of starting their business. We also offer our services to clients who have typically been using primitive methods of accounting and payroll and based on the current industry requirements feel the necessity of having a systematic and scientific system of accounting and payroll.

The set up is structure-based on the current industry, size of the organisation, its employees, growth of the industry, statutes in govern, accounting standards and the requirements of the client.

After a thorough study of the organisation, we help the organisation to implement a proper Accounting System stepwise as follows:

Phase 1Accounting Principles & System

Prepare Accounting Principles and Accounting System to be followed by the

organisation.

Phase 2 Chart of Accounts

Devise an efficient & effective ‘Chart of Accounts’ – categorizing the

organisation’s Income, Expenses, Assets and Liabilities. This phase also involves

designing the ‘Cost Centers & Categories’, when required

Phase 3Accounting Standards

Prepare the necessary Accounting Standards applicable to the organisation.

Prepare list of questionnaires for ascertaining Compliance of Accounting

Standards.

Phase 4 Maintenance of Books of Accounts

Devise an efficient & effective ‘Chart of Accounts’ – categorizing the

organisation’s Income, Expenses, Assets and Liabilities. This phase also involves

designing the ‘Cost Centers & Categories’, when required

Phase 5 Schedule VI

Assist the organisation in preparing the Financial Statements in accordance with ‘SCHEDULE VI’ of the Companies Act,

1956.

Page 2

Compensation Structuringn effective compensation structure has an inclusive approach to issues of employee motivation and cost to the organisation. A

The significance of a well-planned compensation program can never be underestimated as it forms a critical component of any company's hiring, retention and motivation strategies. To make a company competitive and attractive to job candidates, the management should offer an exceptional ‘total benefits’ package. This would contribute to the hiring and retaining of the quality pool of employees.

Under the compensation-structuring segment of our services, we, at Floraison, ensure that the payroll systems at the clients' organisation are properly designed to

» meet their present and future needs,

» monitor the effectiveness of the current benefits packages, and

» provide advice on operational efficiency of the compensation structure within their organisation

The need to develop a compensation structure to provide more benefits to employees without adding extra cost to the employer involves factoring-in of taxation laws for individuals and corporations and the normal industry practices. The exercise of compensation structuring is usually undertaken on basis of the hierarchies of the employees at the client organisation. The components of the salary structure are determined on the basis of the salary range of the various levels. We also propose to go a step further and assist client organisations in implementing the compensation program thus structured. Because, for us Compensation Structuring is not merely number counting - it is an activity that offers tremendous values by stimulating logical and rational decision making.

In 2005, the Indian Income Tax enacted Fringe Benefit Tax (FBT), which requires the employer to pay taxes on certain benefits provided to the employees. Many salary components come in the purview of FBT. While FBT legally is imposed on the employer, the employer has the unilateral right to recover the FBT from its employees. We are specialized in structuring the compensation wherein the tax burden on employees is lowered and the FBT is also be recovered from them.

Page 3

The need to develop a compensation structure to provide more

benefits to employees without adding extra cost to the

employer involves factoring-in of taxation laws for individuals

and corporations and the normal industry practices

Phase 1 Value Creation

Devise a tax-efficient and tax-effective compensation structure including the

introduction of a flexible benefit plan for various hierarchies across an organisation

Phase 2 Value Documentation

Provide documents to the client, which would represent the procedures, policies or instruction to be followed in order to

successfully implement the compensation structure.

Phase 3Value Addition

Add value to the Phase I activity by enabling the employees at the client organisation to create progressive

compensation packages for themselves that best serve their interest.

Phase 4 Value Implementation

Assist the Internal Payroll team at the client organisation in computing/re-

computing the taxes and modifying the payroll systems.

Compensation Structuring Services

The Compensation policy should be designed to address the dual need of encouraging high performance amongst all its employees and at the same time aligning itself to the highly sensitive business scenario. The total compensation package of an individual is made of fixed and variable components. There should be a strong emphasis on individual performance and at the same time encouraging a sense of participation and ownership for the company’s performance in any y e a r. T h e c o m p e n s a t i o n structuring exercise needs to align the company’s compensation levels to that of the market.According to compensation spec ia l i s t s the des ign o f compensation structuring needs to emphasize on internal equity and focus the employee’s attention on the total organisation environment along with its changing needs. Besides it also helps them experience an internal culture that more closely reflects the external business environment and the competitive market.

The Concept behind Designing Compensation

Page 4

Hand Holding

Accounting & Payroll Supportn Accounting & Payroll Support assignment is when Floraison is engaged to perform a specific function on a consulting or retainer basis in order to aid the client organisation. Our approach begins with a thorough A

understanding of the client’s business and ends with the design and implementation of practical solutions and delivery.

Accounting Support

hen a new organisation is established, the last thing the team really wants to W

think about is how their accounting system will look like.

It is much easier to design a useful accounting system at the beginning of the process rather than somewhere in the middle.

We, at Floraison, offer accounting and payroll setup services to our clients who are on the verge of starting their business. We also offer our services to clients who have typically been using primitive methods of accounting and payroll and based on the current industry requirements feel the necessity of having a systematic and scientific system of accounting and payroll.

The set up is structure-based on the current industry, size of the organisation, its employees, growth of the industry, statutes in govern, accounting standards and the requirements of the client.

After a thorough study of the o r g an i s a t i o n , w e h e l p t h e organisation to implement a proper Accounting System stepwise as follows:

Accounting Services

Book Keeping

Processing documents related to sales, collection, payments, receipts and other relevant transactions and

posting the same to sales book, cash book, and journals

MIS Reports

Preparation of Trail Balance, Profit & Loss Account, Balance Sheet, Cash

Flow Statement and Fund Flow Statement at a periodic interval

Preparing Budget

Assisting the client in preparing the budget of the expenses based on

the sales and cash flow, comparing the Budget Vs Actuals and analyzing

the variances thereof.

Liaising with Auditors

Liaising with the auditors for auditing the accounts and tax

returns to be filed.

Page 5

Payroll Support

onfidentiality in the staff remuneration is of utmost importance to any organisation. Therefore most oraganisations believe that the practical way to keep the remuneration confidential is by outsourcing the payroll to C

a trusted outsourcing partner. The accounting and payroll team of Floraison is trained to understand the specific A&P requirements of your organisation and are equipped with the latest technical knowledge to focus on its precise requirements, be it Payroll processing or the statutory relating to the payroll activities.

ClientCollecting the inputs

from the client,new joinees,

ex- employees and attendance details

PayrollProcessing

Processing the payroll after

deducting the TDS, PF, PT and ESI.

Payslip &Paystatement

Preparing confidential pay

reports & payslips, mailing the payslip

to individuals if required

Page 6

Modules:The tables on the following pages illusrate the various modules through which Floraison renders the Accounting & Payroll Support Services

Resource Deployment

Nature of resource engagement

Minimum Duration of Contract

Defining the KRA’s, Job Responsibility & Scope of work of the accountant

Work Planning, Monitoring day to day activities & progress of the accountant

Responsibility for Accountants Performance

Model 1

Onsite

1. Deployment of Accountant

6 months

Client

Client

Client

Model 2

Onsite / Offsite


2. Monthly Accounting and Bookkeeping on a retainer

6 months

Floraison

Floraison

Floraison

Model 3

Onsite / Offsite

1. Accounting Set up & Implementation



4. Review and Reporting

5. Attested MIS Reporting

6. Advisory and Consulting

7. Risks and Responsibilities

12 months

Floraison

Floraison

Floraison

Model 4

Onsite / Offsite

1. Accounting Set up & Implementation



4. Review and Reporting

5. Attested MIS Reporting

6. Advisory and Consulting

7. Risks and Responsibilities

8. External Liabilities

12 months

Floraison

Floraison

Floraison

Page 7

Status reports and updates on the accounting activities on a periodic basis

Submission of MIS Reports including P and L, Balance Sheet and other reports

Overall Risk and Responsibility

Providing advisory and consulting services relevant to accounting

Co-ordination with Annual Audits

External liabilities

Pricing Methodology

Model 1

Would be done by the accountant

Would be done by the accountant

Floraison is not responsible




CTC of the accountant + Margin

Model 2

Would be prepared and submitted by the accountant

Reports would be prepared and submitted by the accountant





Monthly Retainer Fees

Model 3

Would be prepared and submitted by Floraison

Reports would be prepared and submitted by Floraison






Model 4

Would be prepared and submitted by Floraison

Reports would be prepared and submitted by Floraison




Floraison is responsible and would make good all liabilities incurred by client


Page 8

Accounting & Payroll Resourcing

n Accounting & Payroll Resourcing Assignment is when team Floraison is brought in to work along side of the client organisation staff in executing a specific assignment or ongoing functions.A

Accounting and Payroll Resourcing – The Modules

The models under Accounting & Payroll Resourcing include:

Resourcing

TemporaryStaffing

Temp-To-HireServices

Direct Hire

Temporary staffing:

Temp-To-Hire:

Direct Hire:

In this case, we help clients with staffing solutions depending on their short term, temporary and flexible manpower needs, for short term projects and best use of their investments.

The client can hire associates as temporary employees for a trial period of employment; after a satisfactory trial period, a company has the opportunity to add a temporary worker to its permanent staff; by shifting the employee from our payroll to that of the client’s.

This model helps the client in their direct hire needs where we take the responsibility to find the ‘Ideal person’ for their accounting and payroll needs.

Page 9

Our Other Publications:

c c Introduction to Minimum Alternate Tax (MAT)

c Some important FAQ's on Fringe Benefit Tax c Introduction to Auditing and Assurance

Standards in Indiac Fringe Benefit Tax - Heads of Expenses

c that are chargeable to FBT Group Dynamics

c c Employee Engagement - you can do itRelevance of Section 43B of the Income Tax Act

c Employee Separation Formalitiesc Relevance of Section 40a(i) & (ii) of

c Tax Audit Services @PPK and Cothe Income Tax Act

c Statutory Audit Services @PPK and Coc Withholding Tax - an Introduction

c Penalities under Companies Actc Personal Taxation - matters that would surpise you

c Internal Corporate Communication

c Implementing the right accounting c Liabilities of Directors in a corporate software

organization

c Adopting the right accounting c New Age Entrepreneurshipprinciples

c Defining organizational culture - c Foreign Citizen and Non Resident through mission, vision and valuesIndian under Income Tax Act

Corporate Tax in india

TM

Floraison India Compliances Pvt. Ltd.,#185/7, 2nd Floor, "Chandra Plaza", 25th Cross, 8th F Main Road, Jayanagar 3rd Block Bangalore - 560 011,India

Tel: + 91-80-26538257 / 58 / 59Fax: + 91-80-26538273E-mail: [email protected]

www.floraison.in

And more...

Credits: Roopa J Ved

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