All people keep some records of their financial transactions, money receipts, payments, receivables and payables. When these transactions are recorded in chronological order and classified according to some rule or policy adopted by the business entity, it is known as accounting and required information is generated there from for the use of owner, employees, workers, contractors, suppliers, customers, tax authorities, bankers and all stakeholders who have direct or indirect interest in that business entity, activity or vocation as the case may be.
However there is no uniform policy and procedure in respect of keeping accounting records world over yet some accounting & financial reporting standards have been developed by the professional bodies, government bodies, revenue authorities of each country as per their own requirements, constitution, law, rules, regulations, trade, products, economic conditions etc.
In short we can say that although we have well developed accounting profession in India, a well developed ICAI, ICWAI, ICSI, CAG, Controller of Accounts, State Accountant Generals, each having developed rules & policies yet there is a big gap among them all and one transaction has to be reported in different manner to different authorities under different rules and thus a conflicting picture is presented to various stakeholders in the country and everyone starts challenging the others and unending disputes, court cases, distress etc arise.
With evolution of GST in the country to be implemented by July, an accounting software called GSTN is being developed by central government that will be uniform all over India and every person registered on it will have to feed details of each purchase and sale of goods or service undertaken by it every month. Thus GSTN will actually integrate all registered persons in the country and all transactions of sale n purchase of goods and services into one website called GSTN and will serve as uniform accounting software and policy in the country.
Similarly, government can develop uniform accounting software for all direct taxes and duties leviable in the country even without changing the union n state laws so that a comprehensive picture of the economy of country can be made out that will pave way for integration of all direct tax laws also into one law across the country.
Similarly, comprehensive accounting software for all Returns under Labor & Service laws can also be developed for filing complete data of salary wages, bonus, gratuity, PF, ESI etc by each industrial undertaking to the ministry of labor. This will help us in consolidating all labor n industrial laws in the country, make effective industrial policy and take corrective action on the defaulters if any.
Although all these changes will take time but continuous efforts will turn the dream into reality and profession of accountancy will become profession of information system serving one and all in the society.