Accounting for optical firm

Here is a practical accounting setup for an optical firm:

1. Chart of Accounts (Key Heads):
- Sales: Frames, Lenses, Sunglasses, Contact Lenses, Accessories, Spectacle Fitting Charges (service)
- Purchases: Frames, Lenses by category, Contact Lenses
- Direct Expenses: Lens cutting/grinding charges, fitting material
- Indirect Expenses: Rent, staff salary, electricity, advertising

2. Inventory Management: Maintain frame-wise stock (as each frame is unique) and lens stock by power/type. Optical ERP software (like Optik, SpectacleERP, or even Tally with customization) helps track item-wise stock especially for spectacle frames.

3. GST Treatment:
- Spectacle frames: 12% GST (HSN 9003)
- Lenses (optical): 12% GST (HSN 9001)
- Contact lenses: 12% GST (HSN 9001 80)
- Fitting/repair service: 18% GST (SAC 9987 or 9988)
- Spectacles for corrective vision: Verify if your specific product falls under the concessional rate list.

4. Prescripttion Records: Keep a log of customer prescripttions — useful for warranty claims, repeat purchases, and as business records.

5. Key Accounting Entries:
- On sale of spectacles: Dr. Cash/Debtor, Cr. Sales (frames + lens) at selling price + GST
- On purchase: Dr. Purchases + GST Input, Cr. Supplier
- On fitting charges collected: Dr. Cash, Cr. Service Income + CGST/SGST

6. GST Filing: File GSTR-1 and GSTR-3B monthly/quarterly as applicable. Maintain HSN-wise summary since turnover is likely above Rs. 5 crore threshold for mandatory HSN reporting.

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Atharv Sankliya

Aashok Kumar Sharma

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