Read Time : 5 minutes
Snapshot
Who all are not under audit trail rule
Individuals
Proprietorship firms
Partnership firms
Who all has to follow the audit trail rule from 1st April 2022
All Public and Private Ltd. Companies
Limited liability Partnerships (LLP)
One Person Companies (OPC)
Companies owned by Govt. Of India
State Govt. Companies
Not for Profit Companies
Nidhi Companies
What is this audit trail rule?
MCA (Ministry of Corporate Affairs) issued a notification for the companies that they should use such accounting software to maintain their books of accounts which have an Audit trail which should contain log all changes done in the accounting entries and this log can not be deleted or changed. Although the same notification was issued last year also but was withdrawn by govt. under pressure from many stake holders. This year also govt again came up with Audit trail requirement.
What does this mean?
This means that from April 1st 2022 onwards what ever entries you put in your accounting software, if they are deleted or altered or amount changed or date changed then a log has to be kept about what changes has been made and by whom and how many times it is changed. No one should have access to delete or alter this log.
It also means that now you have to be more careful while making entries as you are being watched now.
It also means that you cannot do more manipulation with your accounts.
It also means that if you are using some non standard or inhouse accounting software then you have to shift to something like Tally Prime or any such software who has that feature.
How to prepare yourself for New Audit Trail rule?
Check your software
Check if your accounting software is well complaint with the new Audit trail rule of MCA. If you are using Tally Prime then you need not to worry as Tally Prime rel 2.1 is coming up with this feature. If for any reason you are still using Tally.ERP 9 then you have to consider upgrade to Tally Prime. If you are on any other software then check if it is compliant with this new rule.
Train and educate your staff
You staff who is working on Tally needs to be informed about this rule and trained in such a way that now on wards you do minimum editing in entries.
Audit your data entry process
You should now reconsider or redesign your entry making process. The entries should be done as when they happen and no recording of entries should be done. You should automate as much as possible so that entries are done automatically and your compliance becomes easy.
How ApniTally can help you?
We can help you in installing the latest Tally Prime and implement it in your business.
We also help business in automate the business processes like purchase process, order process and inventory management etc. Contact us for any help.
