Startups, small, and growing businesses invest a significant time in accounting and auditing. One error and you can lose lakhs or even crores. However, you can save time and minimise errors with an advanced accounting software like Marg ERP.
But why do businesses need accounting and auditing in the first place? Here, we are going to explain that with exploring major advantages of accounting and auditing practices for SMEs. Also, how best accounting software is the backbone for your business growth and success.
Significance of Accounting and Auditing for Small and Growing Businesses in India
Accounting and auditing are not merely compliance tasks, they serve as fundamental pillars for small and growing businesses in India to gain visibility, manage risk, secure finance and build sustainable growth.
Improved Financial Visibility and Decision-Making
Accurate accounting helps business owners monitor cash flows and expenses in real time. For instance, a study found that Indian SMEs lose on average Rs. 67 lakh annually due to dependence on legacy financial systems and manual processes.
This equals to around 1,689 man-hours per financial year. Businesses can detect cost overheads, shortage of funds, and manage working capital proactively with properly maintained accounting books.
Access to Finance and Credibility
The ability to attract external funding hinges on transparent records and audited statements. A CPA Australia survey published in The Economic Times stated around 71% of the SMEs in India sought external funding in 2024. It becomes easier for investors to access numbers, assess risk and consider business as low risk, if financial statements are properly audited and maintained.
Accounting and Inventory Management Software like Marg ERP ensures best accounting and auditing practices with GST compliance, updates for the GST 2.0, reports, integration with 140+ banks for auto bank reconciliation, and many more exclusive features.
Regulatory Compliance & Audits
Regulatory compliances and audits protect and enhance your business’s reputation and save them from paying penalties. According to a report published in The Financial Express, around 52% of SMEs cite statutory compliances as a challenge.
Therefore, choose an advanced invoicing software like Marg ERP for a streamlined accounting and audit process with fulfilling regulatory compliances like GST 2.0 and more.
Strategic Growth and Risk Management
Right accounting and auditing processes provide external checks to recognise gaps or misstatements and strengthen internal controls. Also, companies expanding in different locations, states, and outside India often face difficulties in managing local accounting and audit standards.
A significant number of Indian companies are expanding withing India and outside with unprecedented access to new technologies, new markets, resources, and government support. According to a report, over 419 Indian companies announced greenfield overseas projects in 2024.
With right information, maintained account books, and data analysis, businesses can make informed decisions including pricing, scaling operations, budget considerations etc. It minimises risk of wasting money and business collapse due to weak financial discipline.
How Small Business Accounting Software is the Backbone for Your Business?
Now that we know the significance of accounting and auditing for your business, let us explore the role of a small business accounting software to ensure a seamless and accurate accounting process.
Startups and small businesses require more than spreadsheets to manage their invoicing and inventory in today’s digital-first economy. You need a smart, integrated, and data secure accounting software like Marg ERP. It keeps your business GST complaint, efficient, and optimised cash flow.
Simplifies Accounting & GST 2.0 Compliance
- Automates billing, GST return filing, and e-invoicing as per GST 2.0 norms.
- Built-in audit trail compliance ensures data transparency and accuracy.
- Eliminates manual errors and saves valuable time for business owners.
Enhances Financial Control & Decision-Making
- Get real-time visibility into cash flow, expenses, and profitability.
- Generate AI-powered reports for smarter business decisions.
- Helps forecast trends and plan inventory or purchases effectively.
Boosts Business Productivity
- Integrated accounting, inventory, and payroll in one all-inclusive best accounting software.
- Cloud-based access allows you to manage your business anytime, anywhere.
- Minimises paperwork and speeds up day-to-day operations.
Ensure Compliance and Improve Credibility
- Keeps your business GST 2.0 compliant and audit-ready
- Trusted reports and maintained books attract investors, market reputation, and lenders.
Conclusion
A robust and all-inclusive accounting software is not optional in current business landscape. Small and growing businesses need to implement advanced invoicing software like Marg ERP for a fully compliant and efficient accounting and auditing processes.
Marg ERP, India’s No.1 Inventory and Accounting Software, empowers small businesses with automation, compliance, and real-time insights, turning financial management into a growth enabler. With tools aligned to GST 2.0 compliance, audit trail norms, and next-gen ERP technology, it ensures your business stays efficient, transparent, and future-ready.
