Read time: 3 minutes
Snapshot:
Update your accounting software
Train your staff
Go for automation
Things you can do in Tally Prime
Audit Trail rule or edit log rule introduced to those companies which are governed by MCA would come into effect from April1, 2022. We have earlier discussed about this rule in detail. To be prepared for this change your first step would be to audit your software.
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| How to make your business ready for Audit trail Rule? |
Update your Accounting software
Check if your accounting software is well prepared for the Audit Trail? According to MCA notification you should make log of all the entries and the changes made into them. Second thing is no one should have the power to edit or delete this log. So you have to check if both rules are adhere to. If you are using Tally, then you have to switch to Tally Prime Edit Log, which would be available from March 15, 2021 (expected date). In this version you would have all the logs available.
Train your staff
Second step to prepare for Audit Trail is to train your staff. The training would have two aspects. First would be awareness about this rule and second should be how to work more cautiously so that we need not to edit or delete an entry.
Go for Automation
Automation of business processes would help in great length in this scenario. Processes like Purchase orders process, Sales order process, Manufacturing process etc can be automated so that entries related to them can be done according to the process.
Things which we can be done in Tally.
In addition of upgrading to Tally Prime rel 2.1, there are few things which can be done in Tally Prime to prevent alteration of vouchers as much as possible.
The first thing can be done is putting security control on place and only relevant people can go to relevant vouchers and nothing else is allowed to them. For example store people should be given access to only store vouchers and account people should be given access to only accounting vouchers so that no body enters wrong vouchers.
Proper rights can be assigned to each individual according to his authority or ability like who can only edit and who can only create an entry.
Further read : The new Audit Trail (Edit Log) rule, will it impact my business?
