Page 66 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Chartered Accountants of India (ICAI) was established
on 1st July 1949, as the national professional
accounting body.
Accounting has developed many folds in the past few
decades. Early modern accounting has similarities to
today’s forensic accounting. In India, initially accounting
was only about bookkeeping in the form of Single-Entry
Accounting system done manually. Most people would
either write the transactions entered into every day, in an
informal manner or would seek services of a solicitor who
along with the advice would also write accounts. In this
system a lot of lacunae were present, like missed entries,
incorrect date, incorrect amount, incorrect account.
Also, summarization of the entries was not a usual
practice to draw some information out of it.
With the double entry accounting system, many of the
above issues were resolved. However, with growing
numbers of transactions, keeping updated nancials
was a challenge. Generally accounting was done at the
year end, by help of vouchers, bills etc. This led to a
cumbersome task at year end and no accurate
information availability during the year.
With the arrival of technology, the accounting scenario
also changed. The most popular and widely used
Accounting Enterprise Resource Planning (ERP)
software i.e., Tally Solutions was founded as Peutronics
in 1986 by father son duo, Shyam Sunder Goenka and
Bharat Goenka.
Today in spite of many Accounting ERP software being
available in the market, Tally solutions remain the
favourite among small businesses, due to its wide use,
user friendliness, low cost and availability as per need.
Most businesses generally appoint a dedicated team to
look after the accounting and nance domain of the