From tracking, changing to deletion of any data within all financial transactions, TallyPrime's latest edit log feature enables businesses to maintain the edit log along with the date and timeline of each change being done. Built to provide businesses with enhanced transparency, TallyPrime is one the best accounting software with audit trail features available in India. Its edit log feature also provides user details as to who conducted the changes and even tracks the deleted transaction.
Additionally, it also helps in tracking changes made for accounting ledgers, accounting groups, and stock item masters. This allows businesses to seamlessly track the altered transaction from reports as well as compare the altered elements with previous versions.
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Key Requirements of the Audit Trail (Edit Log) Rule Issued by MCA |
What is an audit trail?
An audit trail or audit log is a step-by-step chronological process that provides detailed evidence of the history pertaining to financial transactions. It is used to vet and trace a specific transaction – right from recording to tracking any amendments that might take place for a particular transaction.
To provide a brief background about the audit trail rule, the MCA in order to bring transparency and reduce data manipulation has mandated businesses to use accounting software with an audit trail feature. This implies that organizations that are using accounting software to maintain their books of accounts need to have audit trail feature with effect from 1st April 2023. Further, this feature cannot be disabled.
Now as a business owner, you might have questions as to what is an audit trail? Which is the best accounting software with an audit trail feature in India? Why is the audit trail feature important, and what are some examples of accounting software with the audit trail feature? To answer that, here's a detailed article on the best accounting software with audit trail feature in India:
What is the best accounting software with audit trail feature?
As a business owner, understanding all the features you should look for while choosing accounting software is crucial. TallyPrime’s latest edit log release enables businesses to track all financial transactions with time stamps and details of the edits being done within the transaction – right from creating, editing, or deleting any log along with user details, thereby enabling businesses to get a clear picture of the organization. With that being said, here are some of the key features of TallyPrime edit log release:
- Edit log for transactions and masters: TallyPrime's latest audit trail feature tracks all activities starting from creation, modification to deletion of all financial transactions. Not just transactions, TallyPrime also allows you to track the activities across all masters like ledgers, stock items, groups, comprising the details edited in company masters.
- Get to know when and who made the changes: Not just tracking details of transactions, TallyPrime's latest edit log feature also captures user details of each change being done - right from creation, modification to deletion along with the date stamp. This enables businesses to get a holistic view of all changes being made within all financial transactions.
- Compare and know the version difference: On top of the edit log for all masters and user details, the TallyPrime edit log feature allows businesses to compare versions and analyze what all elements have been modified by the user. This provides enhanced visibility in all financial transactions.
- Enhanced report to filter the edited or deleted transactions: The latest TallyPrime edit log feature provides businesses with the enhanced option to filter and sort the deleted transactions for all reports like daybooks, voucher registers, and more.
- Edit log feature is enabled all the time: The amendment released by the MCA states that the accounting software should have the edit log feature enabled from 1st April 2023. To cater to the upcoming requirement, Tally's latest release TallyPrime edit log, will have the edit log feature enabled by default, and the same cannot be disabled.
Importance of accounting software with audit trail feature
The audit trail was introduced to maintain the integrity of the transaction and bring transparency by documenting and keeping a log of all activities within the financial transaction. This, in turn, would help ensure that businesses practice fair transactions, protect themselves from any data fraud, thereby remaining compliant with the latest rule. Here are some of the importance of having accounting software with audit trail features:
- Audit trail ensures the legitimacy of transactions, thereby making detecting and tracking fraud easy
- Accounting software with an audit trail feature instantly helps businesses access all financial records
- It shows any modifications or alterations made to transactions, thereby providing visibility
- Helps businesses remain compliant and maintain transparency
How audit trail in TallyPrime works?
With several software available on the market, opting for the right solution can become a challenging task. The TallyPrime edit log feature caters to the different business needs, enabling them to keep track of their financial transactions. The latest product release helps you maintain the edit logs and the date and time. It also provides insightful details like user names and tracks any modifications made on accounting ledgers, accounting groups, and stock item masters. Let’s download the latest version of the software.
FAQs:
What is audit trail?
An audit trail or audit log is a step-by-step chronological process that provides detailed evidence of the history pertaining to financial transactions.
What are the key requirements of the audit trail feature?
As per the MCA, starting from 1st April 2023, all business that falls under the purview of the audit trail guideline should have accounting software that comes with the following features:
- Create an edit log of all transactions with modifications made in the books of account
- Record the date and time stamp when such changes are made
- The accounting software should ensure that the edit log should always be enabled
Which businesses fall under the purview of the MCA audit trail guideline?
As per the latest amendment released by the MCA, the following companies will be required to follow the audit trail rule:
- All Public and Private Limited Companies
- One Person Companies (OPCs)
- Companies owned by Government of India
- State Government Companies
- Not-for-Profit Companies/Organization
- Nidhi Companies
Which companies doesn’t fall under the MCA audit trail guideline?
The following businesses don’t fall under the MCA audit trail guideline:
- Individuals
- Proprietorship concerns
- Partnership firms
- LLP-Limited Liability Partnership
How TallyPrime helps businesses follow the MCA audit trail guideline?
TallyPrime’s latest edit log release caters to the different business needs, enabling them to keep track of their financial transactions. The latest product release helps you maintain the edit logs and the date and time. It also provides insightful details like user names and tracks any modifications made on accounting ledgers, accounting groups, and stock item masters.
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