In layman language Accounting/Bookkeeping is process where your revenue and expenses are maintained giving an idea about how your business is doing. Accounting or process of storing, sorting and recording financial transactions is a mandatory requirement and all businesses (including small proprietors) are required by law to submit their accounts to the Income Tax (IT) Department. Also, to raise any form of funds including debt and equity, the financial institutions definitely ask for accounts and audited balance sheets.
(Accounting setup takes about 7 working days)