Accounting software with audit trail feature: MCA postpones implementation to FY23

The ministry of corporate affairs (MCA) has given companies a year to implement its latest regulation which mandates the use of accounting software that records each and every transaction made by them. Companies will now have time till March 31, 2022 for deploying the software.

Last month, the MCA directed all businesses using accounting software to maintain books of accounts to have audit trail features that includes recording audit trail and creating an edit log of each change made in the books of account along with the date when such change was made. Also the audit trail cannot be disabled.