Bookkeeping is recording and organising a business's financial transactions: sales, purchases, expenses, bank entries and payroll. In India, businesses must maintain books under the Income Tax Act and, for companies, the Companies Act. Outsourced bookkeeping gives small businesses accurate monthly books that feed GST returns, TDS, income tax and management reports.
What bookkeeping includes
- Recording sales, purchases and expenses
- Bank and cash reconciliations
- Accounts payable and receivable tracking
- Payroll entries and statutory deductions
- GST and TDS data preparation
- Monthly management reports
Why it matters
Accurate books reduce GST mismatches, support input tax credit, make audits smooth, and give owners real visibility into cash and profitability.
Outsourcing vs in-house
| Factor | Outsourced | In-house |
|---|---|---|
| Cost | Lower for small volumes | Salary and tools |
| Expertise | Team with tax knowledge | Depends on hire |
| Control | Shared via cloud tools | Direct |
Short on time? Leegal can handle Bookkeeping Services for you, end to end.
Get expert help →Choosing a provider
- Experience with your industry and software
- Clear monthly deliverables and turnaround
- Data security and confidentiality
- Integration with tax filing
Frequently asked questions
Is bookkeeping mandatory for small businesses?
Businesses and professionals above the thresholds in Section 44AA must maintain books. Companies must maintain books regardless of size.
How long must records be kept?
Companies must keep books for at least eight years. Income tax rules also prescribe retention periods, generally six years from the end of the relevant assessment year.
Can bookkeeping be done on cloud software?
Yes. Cloud accounting is widely used, and companies keeping electronic books must follow rules on backups and accessibility in India.
How often should books be updated?
At least monthly, before GST and TDS deadlines. Weekly updates give better cash visibility.
Let Leegal handle your Bookkeeping Services
Documentation, filing and follow-up by a dedicated expert, so you can focus on running your business.
- Dedicated point of contact
- Transparent pricing
- Pan-India service