Accounting Books Maintained by a Company Under Companies Act, 2013 – Complete Guide
Every company registered in India must maintain proper accounting records as per the Companies Act, 2013. Failure to maintain statutory books of accounts can lead to penalties, director disqualification, and regulatory scrutiny.
If you are running a Private Limited Company, NBFC, Startup, or LLP, understanding the accounting books maintained by a company is essential for legal compliance and financial transparency.
Legal Provision for Maintenance of Books of Accounts
Under Section 128 of the Companies Act, 2013, every company must maintain proper books of account at its registered office.
These books must:
- Reflect true and fair view of financial position
- Accurately record transactions
- Be maintained on accrual basis
- Follow double entry system
Companies can maintain books:
- In physical form
- In electronic form (ERP / accounting software)
What Are the Mandatory Accounting Books Maintained by a Company?
The following accounting books must be maintained:
1️. Books of Account
These include:
- Cash Book
- Journal
- Ledger
- Purchase Register
- Sales Register
- Expense Register
These records track daily financial transactions.
2️. Financial Statements Records
Companies must prepare:
- Balance Sheet
- Profit & Loss Account
- Cash Flow Statement
- Notes to Accounts
These are prepared annually and filed with MCA.
3️. Fixed Asset Register
Every company must maintain:
- Details of assets
- Purchase date
- Cost
- Depreciation
- Written Down Value
Especially important for NBFCs and financial companies.
4️. Bank Statements & Reconciliation Records
Companies must maintain:
- Bank transaction records
- Bank reconciliation statements
- Loan agreements
Regular reconciliation ensures accuracy.
5️. Statutory Registers (Corporate Records)
Although separate from accounting books, companies must also maintain:
- Register of Members
- Register of Directors
- Register of Charges
- Register of Loans & Investments
These are mandatory under Companies Act.
Accounting Books Maintained by NBFCs
If the company is registered with the Reserve Bank of India as an NBFC, additional compliance applies:
- Loan ledgers
- Interest calculation sheets
- NPA classification records
- RBI reporting data
- Prudential norms compliance records
NBFCs must follow stricter financial reporting standards.
Where Should Books of Accounts Be Maintained?
Books must be maintained at:
- Registered office
OR - Any other place approved by Board resolution
If kept at another place, ROC must be informed.
For How Long Should Books Be Preserved?
As per Companies Act:
- Minimum 8 financial years
In case of investigation, records may need to be preserved longer.
Penalty for Non-Maintenance of Books
If a company fails to maintain proper books:
- Company may be fined
- Directors can face imprisonment
- Auditor may report non-compliance
Maintaining proper accounting records is not optional — it is mandatory.
FAQs – Accounting Books Maintained by a Company
Is it mandatory to maintain books under Companies Act?
Yes, under Section 128.
Can books be maintained digitally?
Yes, electronic maintenance is allowed.
How long must books be preserved?
Minimum 8 financial years.
Do small companies also need to maintain books?
Yes, all registered companies must comply.
