Business

The incomes earned and expenses incurred during a particular period, usually at the end of the year. Profit & Loss Account reflects the income and expenses of the business. It is a financial statement reflecting the outcome of business activities of an organisation during an accounting period. The Profit & Loss Account reports the incomes and expenses directly related to an organisation to measure the performance in terms of profit or loss. Profit & Loss Account is also known as P&L A/c, Profit & Loss Statement, Income Statement or Income and Expense Statement. What is Profit & Loss Statement? The Profit & Loss Statement is a crucial financial statement summarising the costs, revenues and expenses incurred by a business during a specific period, usually a quarter or year. All the indirect expenses and incomes, including the gross profit/loss, are reported in the Profit & Loss Statement to arrive at the net profit or loss. It shows the company’s net profit or loss during a specific time for which it is prepared. This statement helps companies make informed decisions about their operations and track their financial performance. Profit & Loss Statement/Account shows the profits/losses earned/incurred by a business for a month or a year. Companies use Profit & Loss Statement and others use “T Account” for these below mentioned reasons. Profit & Loss Statement/Account is prepared for two main reasons. To know the profits/losses earned/incurred by a business, Statutory requirements (Companies Act, Partnership Act or any other law) Traditionally, there were two steps to know the profit/loss. It meant, the preparation of : Trading Account Profit & Loss Account The trading account reflects the gross profit or loss of the business. Profit & Loss Account shows the net profit or loss earned by the company. Calculations in the Profit & Loss Account would be as follows: Add all revenue earned over the accounting period. Add all expenditures made throughout the accounting period. Subtract total expenses from total revenue to know the difference. If the value is positive, it represents profit; if it is negative, it represents a loss. How to prepare Profit & Loss Statement? Below is the process to prepare the Profit & Loss Statement: Prepare ledger accounts: An account statement must be prepared for each ledger from the journal book to determine the closing balance. Create trial balance: Trial balance summarises all the ledger accounts. It lists every ledger account with the closing balance posted from the individual ledger accounts statement. Preparing trading and profit & loss statement: All the ledger accounts with the nature of the sales, purchase, indirect expenses, direct expense and income are posted to the Profit & Loss Statement. Components of Profit & Loss Statements Revenue/Income – The business’s income is classified into two main categories. The revenue from the primary business operations is recorded first, which includes the revenue generated in the normal course of business. The next category refers to the other income or the miscellaneous income of the business, which includes the income generated from the company’s various investments, such as interest or dividend income.  Cost of Goods Sold- The Cost of Goods Sold (COGS) recorded in the Profit & Loss Statement includes the direct cost of operating like the labour cost, raw material cost or the direct overheads of the business related to the purchasing or manufacturing the goods. These expenses are deducted from the revenue to generate the business’s gross . Operating Expenses- Operating expenses are the indirect expenses/costs involved in the production or manufacturing process of running a business. These expenses include administrative expenses like depreciation costs, employee costs, marketing and distribution costs, selling cost, research and development costs, etc.  Operating Profit- The operating profit is the positive balance from the gross after deducting the operating expenses. It is also called EBIT (Earnings Before Interest and Taxes). A positive operating assures the stakeholders and investors of the business’s profitability and solvency.   Net Income- The net income of a business is the net profit generated by the business after deducting all the operating and non-operating expenses, interest and taxes. It is the profit that is available for distribution to the shareholders. The earnings per share are also calculated based on the net profit or the business’s net income.  Different Formats of the Profit & Loss Account Format for Sole Traders & Partnership Firms Format of P&L Account for Companies Format for Sole Traders & Partnership Firms- No specific format of Profit & Loss Account is given for the sole traders and partnership firms. They can prepare the P&L Account in any form. However, it should reflect the gross profit & net profit separately.  Usually, these entities prefer “T shaped form” for preparing P&L account.  T-shape Form T-shape form P&L account has two sides – Debit & Credit. Trading account is prepared first followed by Profit & Loss Statement.  Trading and Profit & Loss Account Particulars Amount Particulars Amount To Opening Stock xxx By Sales xxx To Purchases xxx By Closing Stock xxx To Direct Expenses xxx     To Gross Profit xxx       xxx   xxx To Operating Expenses xxx By Gross Profit xxx To Operating Profit xxx       xxx   xxx To Non-operating expenses xxx By Operating Profit xxx To Exceptional Items xxx By Other Income xxx To Finance Cost xxx     To Depreciation xxx     To Net Profit Before Tax xxx       xxx   xxx Format of P&L Account for Companies- Companies have to prepare the Profit & Loss Account as per Schedule III of Companies Act, 2013.  Following is the format mentioned in Schedule III – STATEMENT OF PROFIT & LOSS  Name of the Company………….  Statement of Profit and Loss for the period ended…………….     Note No. Figures for the current reporting period Figures for the previous reporting period INCOME       a) Revenue From operations       b) Other Income       Total Income       EXPENSES       a) Cost of materials consumed       b)

LUT and bonds are instruments that evidence an undertaking by the taxpayer for exports. Here we give an insight into the details about when to opt for LUT and when to opt for Bond. Not only this but also how to claim the refund of IGST paid on exports in simple steps. Export is a significant term for multinational trade. It includes the sale of goods/ services from one country to another. In India, there are various rules, regulations, and procedures have been introduced to promote exports by the Indian Government. It makes the procedure simple for exporters. One such regulation is the exporting of goods and services against a Letter of Undertaking (hereinafter referred to as LUT)The GST LUT Form is an essential document that enables you to seamlessly conduct your export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply.  The concept of LUT under Export of Goods and Service against Letter of Undertaking LUT is a document that works as a guarantee by an exporter. That they will fulfill their obligations of paying customs duty, if applicable, on their exported goods or services. It is a binding commitment to a government that exporters will comply with all the applicable laws and regulations regarding exports. The LUT introduce by the exporter and submits to the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs. It is a document that exporters can file to export their goods/services without paying taxes. As per the new GST regime, all exports are under the IGST that later can be reclaimed as a refund against the tax payment. LUT gives exporters the effort of having a refund and terminates the funds blocking through the payments of tax. In accordance with CGST Rules, 2017 any registered person can have LUT in form of GST RFD-11 and export goods/ services without tax payment. Who can apply for LUT under Export of Goods and Service against Letter of Undertaking? Any person can apply for LUT if in case: – Are registered under GST; Intention to export goods/ services; and Wish to export goods/services without any payment of an integrated tax. When to apply for a LUT? It is significant to have all necessary documents with exporters. While filing LUT, is filed by an exporter before the shipment of goods and services. The exporter must apply for LUT before the start of the financial year for which they wish to export. The exporter must renew the LUT annually before the expiry date. Prior to the implementation of the GST regime, exporters had to manually file and signed RFD-11 on business letterhead in duplicate- One has given to the Assistant Commissioner/ Jurisdictional Deputy having jurisdiction over their principal place of business where the verification of the export documents happens by ICEGATE way. Another one is with the export documents to the customs clearing authority. Documents required at the time of filing LUT Application Form: An application form for obtaining a LUT must be submitted online using the Digital Signature Certificate (DSC) of the authorized signatory of the company. PAN Card: A copy of the PAN card of the company must be submitted as proof of identity. GST Registration Certificate: A copy of the GST Registration certificate of the company must be submitted to prove that the company is registered under the Goods and Services Tax (GST) regime. Bank Details: Details of the company’s bank account, including the name of the bank, branch, and account number must be submitted. Export Order: A copy of the export order or contract must be submitted to show the details of the goods or services that will be exported. Invoice: A copy of the commercial invoice must be submitted to show the value of the goods or services that will be exported. Incorporation Documents: Incorporation documents of the company, such as the Memorandum of Association (MOA) and Article of Association (AOA), must be submitted. Authorized Signatory Letter: A letter from the authorized signatory of the company must be submitted, authorizing the person submitting the LUT application on behalf of the company. Digital Signature Certificate: The DSC of the authorized signatory of the company must be submitted as part of the online LUT application process. Business Proof: Proof of the company’s business, such as a certificate of incorporation, certificate of business registration, or trade license, must be submitted. Declaration: A declaration must be submitted by the authorized signatory of the company, stating that the information submitted in the LUT application is true and correct. Eligibility to export under LUT Export under LUT are extending to all registered persons who intend to supply goods/ services. For export without payment of integrated tax, apart from those who are prosecuted for any offense under the IGST Act/ CGST Act, 2017, or any other existing laws. The tax evaded amount in such circumstances exceeds INR 250 Lakhs. Benefits of Export of Goods and Services against Letter of Undertaking Exemption from Furnishing a Bank Guarantee: The biggest advantage of exporting against LUT is that it exempts the exporter from furnishing a bank guarantee for customs duty, if applicable. This saves the exporter a significant amount of money and effort that would otherwise be required to obtain a bank guarantee. Streamlined Exportation Process: Exporting against a LUT simplifies the export process, as the exporter does not have to provide any additional security or collateral. These speed up the export process and allow the exporter to focus on the other important aspects of their business. Increased Confidence: Exporters who have a good track record of compliance with the regulations and laws regarding exports can increase their confidence in their ability to compete in the global marketplace by obtaining a LUT. Improved Reputation: Exporters who export against a LUT are seen as trustworthy and reliable, which can improve their reputation and help them attract new business. Process for obtaining a LUT Apply for a PAN Number: To obtain a LUT, the first step is to apply for a Permanent Account Number (PAN) from the Income Tax Department. The PAN is a unique identifier that is required for

Capital expenditures are payments made for goods or services that are recorded or capitalized on a company’s balance sheet instead of expensed on the income statement. A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long-term physical or fixed assets used in a business’s operations. The expenditures are capitalized (i.e., not expensed directly on a company’s income statement) on the balance sheet and are considered an investment by a company in expanding its business. What is meant by Capital Expenditure? Capital expenditure refers to the funds used by a company to upgrade and maintain fixed assets as well as the money expended on undertaking new projects and investments. Capital expenditure is the money spent on acquiring fixed assets like new equipment, machinery, land, plant etc. and intangible assets such as patents or licenses, upgrading an existing asset, repairing an asset or repayment of loan. It is recorded on the balance sheet instead of the income statement as it is more of an investment that will derive returns in the long term than an expenditure. What is the Purpose of Capital Expenditure? Capital expenditures lead to the creation of assets in the long term. Capital expenditures are made by companies to increase the scope of operations of the company. It is also undertaken to add economic benefit to the operations. Features of Capital Expenditure The current decisions on capital expenditure will influence the future activities of the company – it provides direction to the company’s activity. It is an irreversible expenditure. These expenses are expensive, especially in industries such as production, manufacturing, telecom, utilities, and oil exploration. The capital invested undergo depreciation over a period of time. The accounting process related to capital expenditure is complicated. Uses of Capital Expenditure Capital expenditure can be used to derive a lot of important information regarding the company. For instance, the cash flow to capital expenditures ratio can be used to determine the company’s ability to acquire long term assets using free cash flow. It will show the fluctuations that the business will undergo through cycles of large and small expenditures. A ration that is greater than 1 implies that there is sufficient money to fund asset acquisitions. It is also used in calculation of free cash flow to equity (FCFE) which is the amount of cash that will be made available for distribution to the equity shareholders. A lower FCFE is a product of higher capital expenditure of the firm. Types of CapEx Buildings may be used for office space, manufacturing of goods, storage of inventory, or other purposes. Land may be used for further development. Accounting treatment may be different for land specifically held as a speculative long-term investment. Equipment and machinery may be used to manufacture goods and convert raw materials into final products for sale. Computers or servers may be used to support a company’s operational aspects, including the logistics, reporting, and communication of operations. Software may also be treated as CapEx in certain circumstances. Furniture may be used to furnish an office building to make the space usable by staff and customers. Vehicles may be used to transport goods, pick up clients, or used by staff for business purposes. Patents may hold long-term value should the right to own an idea come to fruition through product development. Formula and Calculation of CapEx CapEx=ΔPP&E+Current Depreciationwhere:CapEx=Capital expendituresΔPP&E=Change in property, plant, and equipment​ Capital expenditures are also used in calculating free cash flow to equity (FCFE). FCFE is the amount of cash available to equity shareholders. The formula for FCFE is: FCFE=EP−(CE−D)×(1−DR)−ΔC×(1−DR)where:FCFE=Free cash flow to equityEP=Earnings per shareCE=CapExD=DepreciationDR=Debt ratioΔC=ΔNet capital, change in net working capital​FCFE=EP−(CE−D)×(1−DR)−ΔC×(1−DR)where:FCFE=Free cash flow to equityEP=Earnings per shareCE=CapExD=DepreciationDR=Debt ratioΔC=ΔNet capital, change in net working capital​ Alternatively, it can be calculated as:  FCFE=NI−NCE−ΔC+ND−DRwhere:NI=Net incomeNCE=Net CapExND=New debtDR=Debt repayment​FCFE=NI−NCE−ΔC+ND−DRwhere:NI=Net incomeNCE=Net CapExND=New debtDR=Debt repayment​ What is the Difference Between Capital Expenditure and Operating Expenditure? Operating expenses are the costs incurred by the company in order to meet the day-to-day expenses of the company. It is a short-term expense that can be fully deducted from the company’s taxes in the year that the expense is incurred. Capital expenditure on the other hand, is an expense that has a life greater than one year and improves the useful life of an asset. Also, capital expenditures are not tax deductible, but can be deducted indirectly by way of the depreciation they generate. FAQs Why is Capital Expenditure important for businesses? Capital Expenditure is crucial for maintaining and improving a company’s productive capacity. It can enhance efficiency, competitiveness, and the ability to generate future revenues. How is Capital Expenditure financed? Companies can finance CapEx through a combination of internally generated funds, debt financing, and equity financing. The chosen method depends on the company’s financial situation and strategy. How is Capital Expenditure accounted for? Capital Expenditures are typically capitalized on the balance sheet, which means they are recorded as assets. The costs are then depreciated or amortized over the useful life of the asset. 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Advisory shares are a type of equity compensation given to company advisors in lieu of (or on top of) a professional fee. Similar to employee stock options, issuing advisory shares to those key inception-phase advisors are common practice for early-stage startups. Advisory shares are a type of equity instrument that are used to provide advice and consultation to the company. These shares do not confer voting rights, and the holder is not entitled to receive any dividends or other distribution of profits. In India, advisory shares are becoming increasingly popular, particularly among start-ups and early-stage companies Provisions of Advisory Shares in India There are no specific provisions regarding advisory shares in the Companies Act, 2013 or under SEBI guidelines in India. Advisory shares can be issued by a company to a person who has expertise or experience in a specific area, and who is willing to provide advice and consultation to the company. The holder of advisory shares does not have any voting rights, and is not entitled to receive any dividends or other distribution of profits. The shares can be converted into equity shares at a later date, subject to the approval of the company’s board of directors and shareholders.However, companies in India can still issue shares to their employees or directors through various schemes, such as Employee Stock Option Plans (ESOPs) or Stock Appreciation Rights (SARs), which function similarly to advisory shares in providing equity-based compensation. These schemes are governed by their own specific regulations and guidelines.ESOPs, for example, are regulated by the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999, as well as the Companies Act, 2013. These guidelines specify the maximum number of shares that can be granted to employees and the lock-in periods for those shares. Similarly, SARs, which allow employees to receive the appreciation in the value of the company’s stock over a specified period, are regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA) Regulations, 2017. Types of Advisory Shares Restricted Stock Units (RSUs)- An RSU is a form of common stock that a company promises to deliver to an employee at a future date, depending on various vesting and performance conditions. RSUs are not received until these restrictions are over or conditions are met. An employer will promise to give an employee stock under certain conditions, such as meeting particular work goals or being at the company for a particular amount of time. Taxes on RSUs apply when the shares are delivered – at the time of vesting. They require you to pay ordinary income tax on their market value when the shares are delivered to you (usually as soon as they vest), even if you do not sell them at that time.  This includes federal, state and local taxes. Sometimes companies allow employees to sell a portion of the vested shares in order to cover the amount in taxes. Following that, the employee can choose between holding the rest of the shares to sell later, or selling them right away. Selling the shares of course means paying any capital gains taxes on any appreciation, or increase in value between the selling price and the fair market value when the person vested. Stock Options- This type of compensation, which is granted to employees, contractors, consultants and investors, is a contract. It gives the recipient the right to buy, or exercise, a set number of shares of the company stock at a preset price, also known as the grant price. This offer doesn’t last forever, though. You have a set amount of time to exercise your options before they expire. Your employer might also require that you exercise your options within a period of time after leaving the company. The number of options that a company will grant its employees varies, depending on the company. It will also depend on the seniority and special skills of the employee. Investors and other stakeholders have to sign off before any employee can receive stock options. How Advisory Shares Work Advisors are usually granted options to buy shares rather than given the actual shares. That helps avoid a potential tax obligation if the company grants advisory shares worth a considerable amount. Advisory shares are often used as incentives for advisors to invest in a company’s long-term success. Company executives and managers, on the other hand, may receive shares instead of options. Stock options will usually vest within a year or two. That allows the company to delay transferring ownership to advisors while keeping them focused on the company’s long-term success. Importance of Advisory Shares in India Advisory shares can be an effective way for start-ups and early-stage companies to attract experienced professionals who can provide valuable advice and guidance. In many cases, these professionals may not be able to invest large amounts of capital in the company, but they may be willing to provide their expertise in exchange for equity. Advisory shares can also be used to incentivize key employees and consultants. By offering these shares, the company can align the interests of these individuals with those of the company, and encourage them to work towards the long-term success of the business. Another important advantage of advisory shares is that they can help the company conserve cash. By issuing equity instead of cash payments to advisors and consultants, the company can reduce its cash outflows and conserve capital for other purposes. However, it is important for companies to be careful when issuing advisory shares. These shares do not confer voting rights, which means that the holder does not have any say in the management of the company. Therefore, it is important for the company to ensure that the holder of the advisory shares is truly providing valuable advice and guidance, and that their interests are aligned with those of the company. Who Issues Advisory Shares? Most companies that issue advisory shares are startups. The company may be little more than an idea at the time. The issuer also may be in the later

mployees State Insurance Corporation (ESIC) of India is a significant multifaceted social system designed to provide socio-economic security to workers and their dependents. The system ensures that the workers and his family do not suffer in case of unseen, unfortunate circumstances. Employees’ State Insurance Corporation is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of ESI Scheme. The ESI is a self-financed social security comprehensive scheme devised to protect the employees against financial distress such as sickness, disablement or death due to employment injuries. EPF stands for Employee Provident Fund that is a scheme for providing monetary benefit to all salaried employees which act as the best investment methods After taking registrations it is mandatory to file the returns on time as required under the statute otherwise there are prescribed penalties that have to be borne by the employer. Introduction To promote the attitude of savings amongst the employees and also to benefit them during retirement a social security system of Provident fund was introduced. Contributions towards the PF are made by both the employer as well as the employee every month. The contribution made towards the PF can be only drawn by the employee only during the time of his or her employment, but there are a few exceptions. The employers that have PF registration have to file the PF returns monthly. The PF return filings are to be completed by the 25th of each month. Here we will talk about the various forms used for PF return filing in detail. The employers can easily file the PF return through the Unified portal. Eligibility Employee State Insurance scheme-is applicable to all the factories and establishments where: Organization having count of employees 10 or more and. Their monthly salary should not exceed Rs. 21,000 and Rs. 25,000 for people with disability. Employee Provident Fund scheme- is applicable to all the factories and establishments where: Organization having count of employees 20 or more and. Their monthly wage is not more than Rs 15000. Advantage of ESI/PF Returns ESI Benefits Medical benefit Sickness benefit Maternity benefit Disablement benefit Dependents benefit Funeral expenses Rehabilitation allowance Due Dates of Filing ESI Return- The due date for ESI payment is 21st of every month and the returns are filed on half yearly basis which are as follows :April-September : 11th of NovemberOctober – March : 11th of May EPF Benefits Tax Benefits Premature withdrawal Pension Benefits Financial Support Contribution by employee Long Term Planning Interest benefits Due Date of filing PF Return- The due date for PF payment is 15th of every month and the returns are filed on a monthly basis by 25th of the following month. Also an annual return is required to be filed by the 25th of April of the following financial year. Documents Required Digital Signature Certificate Employee wise breakup of contributions Copy of Challan Payments Any accidents or mis-happening details Employee wage register Any other details, as required Registration and Filing of Returns An employer who is eligible to be registered as per the Employee State Insurance Act 1948 (“Act”) must do so by abiding by the following steps: An employer needs to keep all documents ready for reference. Next, an employer must file Form 1, which is available in PDF format on the ESIC website. ESIC will verify all the details and issue a 17 digit unique number. This unique number is required for all filings. Every employee will receive an ESI card post submission of the form stating all details by the employer. The documents required for registration are: PAN card of the business. Address proof of business. The license obtained under Shop and Establishment Act or Factories Act. Basic documents required as per the nature of entity – Articles of Association, Memorandum in case of a company, partnership deed in case of a partnership and Limited Liability Partnership. Details of all directors, partners, and shareholders. Details of all employees along with their salary information. Bank details. On successful registration of the establishment, returns can be filed online by the employer. To file ESI returns online, the employer must follow the below-mentioned procedure: The login credentials will be available once registered. The same will be required for the online filing of returns. Once the login credentials are available, the employer must log in to the official website that is www.esic.nic.in. Once he is able to log in using the credentials, there is a list of actions that are available. For instance, modify employee details, report an accident and so on. To file the return, the employer must first verify if all the employee details are up to date and then file the return. The employer must then fill the bank details and submit them to file the returns. After that, the employer can go to the ‘List of Actions’ and ‘Generate Challan’. The challan must be downloaded and documented for future reference and inspections. The website also offers various actions that the employer can take like modify employee details, report accidents, add new employees, and so on. The contributions towards employee state insurance are very beneficial to employees, and hence the provisions for nonpayment or delayed payment are very stringent. The half-yearly return of ESIC for the period April to September is due by 12 November, and October to March is due by 12 May. ESI Employers have the responsibility to contribute to the ESI fund by deducting the employees’ contribution from wages and combining it with their own contribution. Employers have to deposit the combined contributions within 15 days of the last day of the Calendar month. The payments can be made online or to authorized designated branches of the State Bank of India and some other banks. EPF Employers have the responsibility to contribute to the EPFO fund by deducting the employees’ contribution from wages and combining it with their own contribution. Employers have to deposit the combined contributions within 15 days of the last day of the Calendar month. The payments can be made online

Business-to-business (B2B) is a type of transaction that occurs between two businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer. Business-to-business transactions usually involve goods and services that help one business to operate. Examples include raw materials for production, components for product assembly, and services such as advertising or consulting. What are the 4 types of B2B? Manufacturer-Distributor: This type of B2B relationship involves the purchase of products from a manufacturer by a distributor, who then resells them to the end consumer. Manufacturer-Retailer: This type of B2B relationship occurs when a manufacturer sells its products directly to a retailer who then resells them to the end consumer. Manufacturer-Wholesaler: This type of B2B relationship occurs when a manufacturer sells its products directly to a wholesaler who then resells them to the end consumer. Service Provider-Client: This type of B2B relationship involves providing services such as marketing, consulting, logistics, and financial services to businesses. What Is B2B Marketing? business-to-business marketing refers to the marketing of products or services to other businesses and organizations. It holds several key distinctions from B2C marketing, which is oriented toward consumers. In a broad sense, B2B marketing content tends to be more informational and straightforward than B2C. This is because business purchase decisions, in comparison to those of consumers, are based more on bottom-line revenue impact. Return on investment (ROI) is rarely a consideration for the everyday person—at least in a monetary sense—but it’s a primary focus for corporate decision makers. In the modern environment, B2B marketers often sell to buying committees with various key stakeholders. This makes for a complex and sometimes challenging landscape, but as data sources become more robust and accurate, B2B marketers’ ability to map out committees and reach buyers with relevant, personalized information has greatly improved. Who is B2B Marketing For? Any company that sells to other companies. B2B can take many forms: software-as-a-service (SaaS) subscriptions, security solutions, tools, accessories, office supplies, you name it. Many organizations fall under both the B2B and B2C umbrellas. B2B marketing campaigns are aimed at any individual(s) with control or influence on purchasing decisions. This can encompass a wide variety of titles and functions, from entry-level end-users all the way up to the C-suite. Creating a B2B Marketing Strategy Competition for customers, and their attention, is high. Building out a B2B strategy that delivers results requires thoughtful planning, execution, and management. Here’s a high-level look at the process B2B companies use to stand out in a crowded marketplace: Step 1: Develop an Overarching Vision Fail to plan, plan to fail. This truism remains eternally accurate. Before you start cranking out ads and content, you’ll want to select specific and measurable business objectives. Then, you’ll want to establish or adopt a framework for how your B2B marketing strategy will achieve them. Step 2: Define Your Market and Buyer Persona This is an especially vital step for B2B organizations. Whereas B2C goods often have a wider and more general audience, B2B products and services are usually marketed to a distinct set of customers with particular challenges and needs. The more narrowly you can define this audience, the better you’ll be able to speak to them directly with relevant messaging. We recommend creating a dossier for your ideal buyer persona. Research demographics, interview people in your industry, and analyze your best customers to compile a set of attributes you can match against prospects to qualify leads. Step 3: Identify B2B Marketing Tactics and Channels Once you’ve established solid intel around your target audience, you’ll need to determine how and where you intend to reach them. The knowledge you’ve attained through the previous step should help guide this one. You’ll want to answer questions like these about your ideal customers and prospects: Where do they spend their time online? What questions are they asking search engines? Which social media networks do they prefer? How can you fill opportunity gaps that your competitors are leaving open? What industry events do they attend? Step 4: Create Assets and Run Campaigns With a plan in place, it’s time to put it into motion. Follow best practices for each channel you incorporate into your strategy. Critical ingredients in effective campaigns include a creative approach, useful insights, sophisticated targeting, and strong calls to action. Step 5: Measure and Improve This is the ongoing process that keeps you moving in the right direction. In the simplest terms, you want to figure out why your high-performing content performs and why your low-performing content doesn’t. Understand this, and you’ll more wisely invest your effort and budget. The more vigilant you are about consulting analytics and applying your learnings, the more likely you are to continually improve and surpass your goals. Even with a well-researched foundation, the creation of content and campaigns inherently requires a lot of guesswork until you have substantive engagement and conversion data to rely on. The differences between business-to-consumer (B2C) and business-to-business (B2B) B2B and B2C e-commerce may look the same, but they are quite different. Business buyers and retail consumers have different purchasing needs. The differences can be: Buying Impulsively Vs. Buying Rationally – B2C buyers will buy on impulse and make one-off purchases, while B2B buyers plan for purchases and make recurring purchases. Single Decision Maker Vs. Multiple Decision Makers – B2C purchases are decided upon by the buyer, B2B purchases often involve several layers of approval and may involve different departments. Short-term Customer Relationship Vs. Long-term Customer Relationship – B2C purchases are often one-off purchases, and B2B purchases are based on long-term and ongoing relationships. Set, Fixed Prices Vs. Diverse Prices – B2C prices are generally not negotiable. B2B prices are usually negotiated individually. Pre-Delivery Payment Vs. Post-Delivery Payment – B2C e-Commerce is generally paid by credit card, debit card or PayPal before the goods are shipped B2B payment is often on terms and maybe 30 or more days after goods are shipped. Deliveries focused on speed Vs. Deliveries focused on punctuality – B2C buyers are looking for speed of

The term business-to-consumer (B2C) refers to the process of selling products and services directly between a business and consumers who are the end-users of its products or services. Most companies that sell directly to consumers can be referred to as B2C companies. Introduction to business to consumer (B2C) Business to Consumer or B2C is a business model where businesses provide services directly to the consumer, without the interference of any intermediaries. This model is especially popular in e-commerce, and became the gateway where local businesses could thrive by putting up a storefront of their own for customers to choose and make purchases from. Understanding Business to Consumer (B2C) Business to Consumer business model is significantly different from Business to Business model. The volume of goods sold is lesser than B2B but it is often open to a wide audience. B2C model businesses thrive by maintaining a steady stream of sales through their trade windows. Examples of B2C include online shopping outlets, the onset of which came about during the dotcom boom in the 1990s with the internet, mall shopping and eating out at restaurants etc. When times and the economy is tough, B2C businesses often face the brunt of it. The supply-delivery chain gets hampered due to lack of funds by the business or due to the lack of demand by the consumers. Without adequate marketing, and without a particular target market to advertise these products to, B2C may face the brunt of it, like many dotcoms in the 1990s did and weren’t able to survive the shakeout of the dotcom business. B2C vs B2B While B2C sells directly to the consumer, B2B is any business that caters to other businesses. Feature B2C B2B Target audience Individual consumers Businesses Buying process Shorter and more impulsive Longer and more deliberate Decision-making process More emotional More rational Volume of transactions Smaller Larger Value of transactions Smaller Larger Marketing channels More focused on online and offline advertising More focused on business-to-business (B2B) events, trade shows, and online marketing Sales cycle Shorter Longer Customer relationship More transactional More long-term Types of B2C Models Direct Sellers  Direct sellers are the most common business-to-consumer business. These are retail stores or sites from where consumers directly make purchases. Small businesses, producers and manufacturers are examples of direct sellers who market their products directly to their consumers. Intermediaries  Intermediaries are online platforms that connect buyers with sellers in exchange for a commission. The most important reason why consumers choose online intermediaries is because they offer low prices. Amazon, Etsy and eBay are some of the examples of online intermediaries. Advertising-based  B2C companies like YouTube, Facebook and Reddit provide free services to attract visitors. Then, they advertise products and services from other companies to visitors to generate revenue. Traffic-driving strategies like content marketing and social media marketing are used by B2C advertising businesses. B2C advertising-based companies earn profits by selling advertising spaces. Sellers, on the other hand, get the benefit of online visibility, generate revenue and get their leads converted. Community-based  Community businesses choose online communities and social media platforms such as Facebook, Instagram, Twitter, LinkedIn and other online platforms to market their products directly to site users. Fee-based  Fee-based B2C companies are usually e-commerce businesses which require users to pay a subscription fee to access their services. Examples include Netflix, Spotify, The Wall Street Journal and Hulu.  What Are the Benefits of B2C? Larger Reach: B2C businesses can reach a global audience with the right marketing channels thanks to the huge interest and creative strategies they can employ. Minimum Cost and Expenses: Online B2C businesses enjoy reduced overhead expenses – they don’t need to spend on rent, warehousing, inventory or electricity. Access to Customer Data: Considering that a B2C business deals directly with customers, it has better and direct access to valuable data about customers. They can easily get insights such as customer behaviour, conversion statistics and demographic details. Customer Personalisation: B2C businesses usually enjoy a closer relationship with their customers than B2B businesses. Think about Zomato’s marketing strategy – the casual tone and relaxed humour makes B2C businesses feel a lot more approachable. B2C Challenges  Business-to-consumer businesses face massive competition in the market. To survive, one has to market their product and brand well.  Customer retention and satisfaction is a big challenge. Investing in innovative marketing and attracting customers is essential.  10 Best B2C Marketing Strategies This makes it very important for B2Cs to have a robust marketing strategy in place to ensure they reach their target audience, build brand awareness, generate leads, and drive sales. Here are a few marketing strategies that the top B2Cs in India use. Content marketing: Create and share valuable content that is relevant to your target audience. This could include blog posts, articles, infographics, e-books, or videos. For example, a clothing brand could create a blog post about how to style different types of jeans. For example, Nykaa has a YouTube channel where they post relatable, funny and promotional content for their user base. Search engine optimisation (SEO): Optimise your website and content for search engines so that your website appears higher in search results pages. For example, any time you search for practically any product on Google, you see shopping sites like Amazon, Flipkart or IKEA right at the top.  Pay-per-click (PPC) advertising: Pay for ads to appear at the top of search results pages. This is a great way to reach a large audience quickly. For example, an electronics brand could run PPC ads for the keyword “laptops.”  Social media marketing: Use social media platforms to connect with your target audience and promote your products or services. Instagram, LinkedIn, Facebook and YouTube are powerful tools to reach your audience, and many B2C businesses have huge followings on these social media. For example, Netflix’s Instagram has 33 million followers.  Email marketing: Collect email addresses from your target audience and send them regular emails with updates about your business, new products or services, and special offers. For example, a subscription box company could send out email newsletters to its subscribers with details about the latest products in its box.  Influencer marketing: Partner

Central Bank of India (CBI) is the largest government-owned public sector banking company. It was the first commercial bank in India, which provides personalised business banking solutions. This bank has played an important role in establishing the regulated banking sector in India as it offers a vast network of current account banking services and products and to individuals as well as businesses. A current account is meant for the business entities or business enterprise and those who deal with a huge number of transactions on a regular basis. A current account allows a business person to carry out unlimited transactions without any limit, subject to a banking cash transaction tax if any levied by the government. The Central Bank of India was the country’s first commercial bank. Established in 1911, the bank now has branches all over the country. Central Bank of India has also played a significant role in nurturing the areas of improvement for small-scale industries in the country. Central Bank offers its customers a number of financial products and services one of which is the current account. A current account is a type of bank account where the limit on the number of cash and non-cash transactions are comparatively higher than those of a regular savings account. This type of account is commonly used by businessmen, merchant, retailer, and individuals who require high liquidity. Central Bank has 5 variants of the current account and customers have the option of choosing the account that best suits their requirements. Eligibility Criteria – Central Bank of India Current Account Resident Individual Hindu Undivided Family (HUF) Partnership Firm Sole Proprietorship firm Private or Public Limited Company Trust/ Association/ Club/ Society Limited Liability Partnership (LLP) Foreign National Residing in India Foreign Institutional Investor (FII) Features and Benefits – Central Bank of India A current account is designed to enable business people and self-employed professionals to conduct business transactions efficiently. Current accounts do not hold any interest on the balance amount lying in current accounts with the bank. It offers various facilities outstation cheque collection for the quicker mobilisation of your funds. It also offers with the secure payment of direct taxes through online. The account can be transferred to any branch, and monthly statements can be obtained for the same. Initially, a low minimum average balance (MAB) can be maintained. Multi-city chequebooks are provided with account opening, and nomination facility is also accessible. Based on credit history, the overdraft facility is also available. Central Bank of India current account offers a premium internet banking facility mainly to manage the accounts and fund transactions and secure bill payment. Overdraft facilities, Mobile banking and Internet banking facilities are also available for the current account holders. No limits on the deposits and withdrawals in the home branch. Documents Required KYC Documents – Individuals KYC Documents – Non-Individuals Proof of the company that you’re working in. Identity Proof: Aadhar Card, PAN Card, Driving License, Voter Identity Card, etc. Address Proof: Valid Passport, Utility bill, Aadhar Card, Property tax bill, etc. Seal of the company. Two passport size colour photographs  Declaration from the Karta. Proof of Identification  Address Proof of Karta. Hindu Undivided Family (HUF)  Prescribed Joint Hindu Family letter signed by all the adult co-parceners.  The identity of adult co-parceners. For Sole Proprietorship Firm Identity Proof (PAN Card, Aadhar Card, etc.) of the proprietor. Address Proof (Valid Passport, Utility bill, Property tax bill, etc.) of the proprietor. Registration Certificate issued by the Registrar of LLP (in the case of a registered concern). Certificate or licence issued by the Municipal authorities under the Shop & Establishment Act. Sales and income tax returns in the name of the sole proprietor. CST or VAT certificate Certificate or registration document issued by the Sales Tax/ Service Tax/ Professional Tax authorities. For Partnership Firms Registration certificate Partnership deed Beneficial owners list holding more than 15% in the firm. Address Proof and ID Proof Power of Attorney (POA) For Limited Liability Partnerships (LLP) Power of Attorney (POA) Registration Certificate issued by Registrar of LLP. Identity Proof of POA holders: PAN Card of the entity. Address Proof: Aadhar Card of the sole proprietor/ entity, Valid Passport, etc. Two passport size colour photographs. LLP agreement. Designated partners updated list. For Private or Public Limited Company Beneficial owners list holding 25% share or capital. Address Proof and ID Proof Memorandum and Articles of Association Power of Attorney (POA) Certificate of incorporation For Trust, Society, Unincorporated Association & Club Certificate of registration Power of Attorney (POA) Trust Deed Address Proof and ID Proof (trustees, executors, administrators, etc.) Beneficial owners list Once all the certificates mentioned above are self-attested and valid, you may open the current account in Central Bank of India. Central Bank of India Current Account Products Central Bank of India provides various types of current account products that can serve the requirements of different businesses. These products are a good fit for small retailers, traders, self-employed individuals running sole proprietorships or businesses in their name and other businesses with an annual turnover of fewer than 2 crores. Personal Current Accounts Entrepreneurs can select the product from the below list that suits their business requirements. The following are the some of the Central Bank of India current accounts. Normal Current Account Cent Silver Current Account Cent Gold Current Account Cent Diamond Current Account Cent Samvridhi Current Account S. No. Personal Current Accounts Minimum Balance Requirement (On Quarterly Average Balance basis) to be maintained  Concession in Cash Withdrawal Charges Charges for non-maintenance of minimumquarterly average balance Rural  Semi-Urban Urban  Metro  Home Branch Non-Home Branch Rural  Semi-Urban Urban   Metro  1. Normal Current Account Rs. 3000 Rs. 3000 Rs. 5000 Rs. 7000 Free Free Rs. 200/- Rs. 300/- Rs. 400/- Rs. 600/- 2. Cent Silver Current Account Rs. 50,000 Rs. 50,000 Rs. 50,000 Rs. 50,000 Free Free Rs. 600/- Rs. 500/- Rs. 300/- Rs. 200/- 3. Cent Gold Current Account Rs. 2 lakhs Rs. 2 lakhs Rs. 2 lakhs Rs. 2 lakhs Free Free Up to 10 transactions Rs. 1200/- Rs. 800/-

MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 2nd February, 2024   S.O. 446(E).—In exercise of the powers conferred by sub-sections (1) and (2) of section 396 of the Companies Act, 2013 (18 of 2013), the Central Government hereby establishes a Central Processing Centre at Indian Institute of Corporate Affairs, Plot No. 6,7,8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin Code- 122050 having territorial jurisdiction all over India, for the purpose of the provisions of the said section. 2. The Central Processing Centre shall process and dispose off e-forms filed along with the fee as provided in the Companies (Registration of Offices and Fees) Rules, 2014. 3. The jurisdictional Registrar, other than Registrar of the Central Processing Centre, within whose jurisdiction the registered office of the company is situated shall continue to have jurisdiction over the companies whose e-forms are processed by the Registrar of the Central Processing Centre in respect of all other provisions of the Companies Act, 2013 and the rules made thereunder. 4. This notification shall come into force from the 6th February, 2024.   [F. No. A-42/46/2023-Ad.II-MCA] ANURADHA THAKUR, Addl. Secy. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida  Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013

Reporting and analyzing financial metrics is necessary to understand your business’s financial health. Gross revenue represents the total amount of revenue earned from all your income sources and is a useful tool for calculating sales, predicting business growth and attracting lenders or investors.Gross revenue, also known as gross income, is the sum of all money generated by a business, without taking into account any part of that total that has been or will be used for expenses. As such, gross revenue includes not just money made from the sale of goods and services but also from interest, sale of shares, exchange rates and sales of property and equipment. What is gross revenue? Gross revenue refers to the total amount of revenue earned in a given reporting period. Found on the first line of your income statement, gross revenue is also called the top line. Gross revenue factors into business profits, but relates only to money earned from sales and doesn’t account for any other expenses, such as cost of goods sold (COGS) or overhead. Gross revenue is often used interchangeably with other similar terms, such as gross profit, cash flow or total sales. The key difference between gross revenue and these terms is that revenue represents the total amount your business receives without accounting for any expenses, and other terms relate to subsets of income. Gross revenue vs. Net revenue Gross revenue and net revenue are often considered together, but they describe different aspects of an organization’s financial health. Where gross revenue is the top line of the income statement, net revenue is the bottom line. It subtracts all expenses incurred during operation and production, such as COGS, taxes or loan interest, from gross revenue to determine net income or profit. When gross and net revenue are understood together, they can illustrate an organization’s profitability and financial performance. The general formula for net revenue is: Gross revenue ($100,000) – total expenses ($40,000) = net revenue ($60,000) Why is gross revenue important? Although it doesn’t account for operating costs or COGS, gross revenue is an important metric that assesses your organization’s profitability and financial performance. Even before businesses turn a profit, changes in gross revenue can indicate and predict business growth and can be considered against other profitability metrics, including gross profit and net income. Gross revenue also demonstrates your company’s potential to external stakeholders. Investors and financial partners consider revenue in relation to other metrics to determine if the company is a secure investment. Likewise, banks, lenders and credit card companies factor your business’s growth revenue into your credit applications. Consistent or growing revenue shows lenders that your business can reliably repay loans. Stagnant or declining revenue may cause difficulties in acquiring credit as lenders may see your loan as high-risk. How to calculate gross revenue 1. Determine the reporting period- Begin by setting a period of time for your gross revenue reporting. Businesses typically calculate gross revenue yearly, quarterly or monthly as part of required income statements, but you can calculate it as often as your business strategy requires. 2. Identify all income sources- Identify all the income sources your business had over the established time period. Include product sales, services sold, shares and any other income streams your business might have. For example, if a customer pays for $1,200 of services over one year and your business calculates gross revenue quarterly, this income stream is calculated at $300 per quarter. 3. Add income together- Add all of your income streams together. This total is your gross revenue. Example: Your business earns $20,000 from in-store sales, $30,000 from online sales and $5,000 from investment dividends. The gross revenue is $55,000. Evaluating gross revenue Know your audience: When determining what fiscal information to present along with gross revenue, consider who the information is for. Income statements for stakeholders better describe your business’s financial health when they include gross revenue in conjunction with net revenue, operating costs or other information. Internal use: You should evaluate gross revenue periodically to set targets and to better inform your business growth and sales strategies. Include all income: Remember to include all forms of income, such as in-store sales, online sales, investment income, royalties and other revenue sources. Track gross revenue: Track your gross revenue at consistent intervals to see if your business is growing or struggling in certain financial aspects. How an obligor changes revenue reporting a primary obligor is an organization that provides a product or service to another business. Understanding this relationship is an important part of revenue reporting. For example, Business A manufactures computers and is responsible for production costs, inventory and credit risk. Business A sets its own prices, negotiates with suppliers and fulfills orders independently. To sell its computers, Business A enters an agreement with Business B, which agrees to sell Business A’s computers alongside products made by other manufacturers. Business B’s website includes a disclaimer that the company bears no responsibility for the shipping or quality of products. Business B notifies Business A of any sales, and Business A ships products to buyers.  In this example, Business A is the primary obligor and reports gross revenue on its income statements. Business B isn’t the primary obligor and reports sales as net revenue. FAQs What’s the difference between gross revenue vs. gross profit? Gross revenue is the company’s total revenue without any losses or costs deducted. Typically only accounting for variable costs instead of fixed costs, gross profit is a metric describing gross revenue minus COGS. Gross profit is likewise different from net profit, which considers all organizational expenses. It’s used to assess a company’s labor and resource efficiency in manufacturing goods or providing services. What’s the difference between gross revenue and cash flow? Gross revenue represents all income streams that your business receives, including sales, royalties and interests. Cash flow refers to money going in and out of businesses. Gross revenue is included in cash flow calculations, and investors, lenders and stakeholders often consider this calculation when assessing your organization’s financial health. Are net revenue and