Small Business Advisory

Small business advisory provides financial and compliance guidance to established, owner-run businesses that have revenue and operations but no full-time finance team. It typically covers financial planning and cash flow, year-round tax planning, bank-financing support, management reporting, and the move from informal record-keeping to documented systems. It suits businesses that have outgrown basic bookkeeping but are not yet large enough to justify a full-time chief financial officer. We tailor the engagement to the owner's priorities and the stage of the business.

An accountant records what has happened; CFO-level support helps you decide what to do next. The need usually appears when cash flow becomes harder to predict, when a bank or investor asks for structured financials, when margins are unclear across products or customers, or when the owner is spending more time on finance than on running the business. A virtual CFO provides this oversight on a part-time basis, covering financial strategy, cash flow, reporting, and compliance, without the commitment of a full-time hire.

A budget sets out expected income and costs for the year, and a cash flow forecast shows when money will actually come in and go out. Together they let you anticipate a shortfall before it becomes urgent, plan for a large payment or purchase, and judge whether the business can fund expansion from its own resources or needs external finance. For an owner managing several responsibilities at once, this turns financial decisions into planned choices rather than month-end reactions.

Presumptive taxation lets eligible small taxpayers declare income on a statutory basis instead of maintaining detailed books and computing actual profit. The three schemes remain identified by Section 44AD [ITA 2025: s. 58(2), Table row 1], Section 44ADA [ITA 2025: s. 58(2), Table row 3] and Section 44AE [ITA 2025: s. 58(2), Table row 2] for eligible business, specified professions, and the goods-carriage business respectively. The Section 44AD [ITA 2025: s. 58(2), Table row 1] business scheme is available to a resident individual, HUF, or partnership firm other than an LLP, while the Section 44ADA [ITA 2025: s. 58(2), Table row 3] professional scheme is available to a resident individual or partnership firm other than an LLP carrying on a specified profession, such as medicine, law, architecture or accountancy. Section 44AE [ITA 2025: s. 58(2), Table row 2] has its own ownership and vehicle conditions.

Under Section 44AD [ITA 2025: s. 58(2), Table row 1], an eligible business generally declares 8% of turnover, or 6% for the qualifying non-cash receipts, and the scheme applies up to Rs 2 crore of turnover, extended to Rs 3 crore where cash receipts do not exceed 5% of total turnover or gross receipts. Under Section 44ADA [ITA 2025: s. 58(2), Table row 3], a specified professional generally declares 50% of gross receipts; the limit is Rs 50 lakh, extended to Rs 75 lakh where cash receipts do not exceed 5% of total gross receipts. A lower declaration can trigger books and tax-audit requirements under the applicable conditions in Section 44AB [ITA 2025: s. 63].

GST registration is generally required once aggregate turnover crosses Rs 40 lakh for a supplier of goods or Rs 20 lakh for a supplier of services, with lower limits of Rs 20 lakh and Rs 10 lakh in special category states. A smaller business can opt for the composition scheme, which allows a fixed percentage of turnover to be paid as GST with simpler quarterly compliance: turnover up to Rs 1.5 crore for traders, manufacturers and restaurants, and up to Rs 50 lakh for other service providers. A composition dealer cannot collect GST from customers, claim input tax credit, or make inter-state sales. GST is governed by the GST law, separate from income tax. We assess which route fits your turnover and customer profile.

A tax audit is required when business turnover exceeds Rs 1 crore, with the ceiling raised to Rs 10 crore only where cash receipts and cash payments each do not exceed 5% of their respective totals. For specified professionals, the threshold is gross receipts above Rs 50 lakh. A lower presumptive declaration can also trigger audit under the applicable statutory conditions. These requirements sit under Section 44AB [ITA 2025: s. 63]. For FY 2025-26, the report is furnished under Rule 6G [ITR 2026: r. 47] in Form 3CA [ITR 2026: Form 26, Part A] or Form 3CB [ITR 2026: Form 26, Part B] together with Form 3CD [ITR 2026: Form 26, Parts C and D]. It is generally due on 30 September 2026, or on 31 October 2026 where a report under Section 92E [ITA 2025: s. 172] is also required. The Income Tax Act 2025 provisions and Income-tax Rules 2026 Form 26 apply from tax year 2026-27.

The rule links a tax deduction to paying a micro or small enterprise supplier on time. Under Section 15 of the MSMED Act 2006, payment is due by the appointed day where there is no written agreement—effectively after the statutory 15-day period—or by the agreed date where there is a written agreement, which cannot extend beyond 45 days from acceptance or deemed acceptance. If the amount remains payable beyond that limit, Section 43B(h) [ITA 2025: s. 37(2)(g)] allows the deduction only on actual payment. The rule turns on the supplier's qualifying micro or small enterprise status, not on whether the buyer is registered, so buyers should verify supplier status and track the applicable date.

CMA stands for Credit Monitoring Arrangement. It is a structured financial report a bank requires to assess a business's creditworthiness and repayment capacity before sanctioning or renewing a working capital limit or term loan. A typical CMA report carries the past two to three years of actuals, the current year's estimate, and projections for the next three to five years. It includes the operating statement, an analysis of the balance sheet, a working-capital assessment, the maximum permissible bank finance calculation, a fund flow statement, and key ratios such as the current ratio and the debt service coverage ratio. We prepare it so the figures are internally consistent and aligned with the lender's norms.

A project report and CMA data serve related but different purposes. A project report describes the business or proposed project, including its model, market, promoters, costs, and viability, and is used mainly to support a term loan or a new or expansion proposal. CMA data is a financial-statement-driven analysis focused on past performance, projections, and the working capital the business can be funded for. Banks often ask for both: the project report to understand the proposal, and CMA data to size and monitor the facility. We prepare each to match what the lender expects.

Udyam registration is the government's MSME registration, completed online using PAN and Aadhaar through the Udyam portal at no government charge. It is not mandatory to run a business, but it is required to claim benefits available to micro, small and medium enterprises. Registration gives access to priority-sector and collateral-free lending schemes, supports easier credit, and lets a registered micro or small supplier rely on the timely-payment protection that the 45-day rule provides. It also helps when applying for government tenders and certain subsidies. We assist with classification and registration so the certificate reflects the correct category.

Management reporting, often called MIS, presents the numbers behind the business in a usable form: profitability by product, customer or segment, rather than a single bottom line. Cost and margin analysis then examines where money is made and lost, reviewing pricing, input costs, and any leakage. Together they show which parts of the business deserve more attention and which are quietly eroding profit. For an owner, this replaces a general sense of how things are going with specific, comparable figures that support pricing and investment decisions.

The move usually becomes necessary when informal habits stop scaling: when more people handle money or stock, when the owner can no longer personally check every transaction, or when a bank, buyer or auditor expects proper records. Documented processes, basic approval controls, and structured record-keeping reduce errors, make handovers possible, and prepare the business for financing, family involvement, or growth. We help sequence this so compliance gaps are closed first, then quick improvements, then longer-term structure.

Yes. These services are built around the needs of the business rather than its legal form, and apply to sole proprietors, partnership firms, limited liability partnerships and private companies. The form of the entity affects specific points, such as which presumptive provisions are available or how a bank assesses a loan, but the underlying advisory on cash flow, tax planning, financing, and reporting applies across all of them. We adjust the approach to the entity type and the stage of the business.