• Medha Basu

Audit Trail Mandatory in all Accounting Software for Companies in India Starting 1st April 2022

Updated: Apr 7


The Ministry of Corporate Affairs (MCA) in India has announced that starting 1st April 2022, all businesses utilising accounting software must include audit trails. The notification was issued on 24th March 2021 under the Companies (Accounts) Amendment Rules. This includes companies using ERP software to manage their accounts.

An audit trail is to be recorded for each and every transaction made, as well as edit logs of changes made in the books of a business’ accounts. The notification also mentioned that all audit trails should not include a disabling feature.

What is an audit trail? Why is it important for your business?

Audit trails must log the time, date and user of any transaction created in a company’s books. The accounting data recorded extends from source documents such as receipts, invoices and vouchers to general ledger.


Audit trails hence serve as a reliable and effective source for business management. They are often added as a feature in accounting or ERP software such as FACT ERP.NG, providing full transparency and assisting in compliances. Mandatory audit trails reduce the risk of data manipulation and, in more dire cases, fraud. They also make your auditor’s job faster and easier, creating an economy based on integrity and efficiency.

Is Your Business Impacted?

Regardless of industry, all small and medium businesses in India are required to integrate audit trails into their accounting software by 1st April 2022. Many in-house, tailor-made or other accounting and ERP softwares do not have an audit trail feature or, if they do, it may still be possible to disable it.


If your software vendor isn’t planning to implement the audit trail requirements soon, it may be time to consider alternative options. In accordance with the law, you must take steps immediately to ensure compliance with the new accounting standard, if missing.

The time to switch is now

Audit trails are just one of many new laws the Government of India has introduced in the past few years. If this isn’t the first time you’ve found yourself wondering whether your accounting or ERP software is up to date on the latest compliances, consider evaluating other options.

trail feature for many years. FACT ERP.NG is fully compliant with the MCA’s audit trail requirements, and FACT Software has consistently been an industry leader in ensuring that FACT ERP.NG is fully compliant to the law, often by a lead time of several months, well ahead of the curve. FACT has been one of the first companies to introduce GST compliance, GST e-Invoicing and many more compliances. With a fully equipped Auditor’s Toolbox, FACT ERP.NG brings you peace of mind so that you can concentrate on growing your business.

With over 30 years in the industry, FACT Software will fulfill all your business’ accounting, tax and statutory compliance needs – you never have to concern yourself with new government regulations.


Want to learn more? Contact our ERP Consultants to view a live demo of FACT ERP.NG.


FACT Software has incorporated an audit trail feature for many years. FACT ERP.NG is fully compliant with the MCA’s audit trail requirements, and FACT Software has consistently been an industry leader in ensuring that FACT ERP.NG is fully compliant to the law, often by a lead time of several months, well ahead of the curve. FACT has been one of the first companies to introduce GST compliance, GST e-Invoicing and many more compliances. With a fully equipped Auditor’s Toolbox, FACT ERP.NG brings you peace of mind so that you can concentrate on growing your business.

With over 30 years in the industry, FACT Software will fulfill all your business’ accounting, tax and statutory compliance needs – you never have to concern yourself with new government regulations.


Want to learn more? Contact our ERP Consultants to view a live demo of FACT ERP.NG.




  • iconfinder_facebook_circle_color_107175.
  • iconfinder_twitter_circle_294709
  • iconfinder_2018_social_media_popular_app
  • iconfinder_LinkedIn_570628

© 2021 FACT Software Group