Penetration of Accounting Practices among the selected SMEs of Arunachal Pradesh: An Exploratory Study

Main Article Content

Rosna Magra, Rajkumar Giridhari Singh


Small and medium enterprises are integral part of Indian economy as majority of Indian population are from rural area which is why development of SMEs become priority for any economy. The development and growth of SMEs mainly depends on proper planning and proper management of finance. Due to scarce financial resources and management of accounts growth of SMEs is still lagging behind. The present study emphasizes to understand the current status of accounting practices among SMEs of capital complex of Arunachal Pradesh. The study was undertaken taking a sample of 200 SMEs operating in retail sector, service sector and entertainment/hospitality sector in the area. A structured questionnaire is designed to collect primary data from the respondents. Frequency and percentage are used for analysing and interpretation of data. The cross tabulation is also used to check the relationship between variables studied. The study found no relationship between the industrial sector and accounts prepared as revealed by the Chi square test. The study also concludes that SMEs of capital complex are more inclined toward cash transaction. Proper awareness and training should be provided to made aware of IFRS, GAAP, Ind-AS and accounting standards. Policies makers and government should develop customized accounting guidelines suitable for SMEs which would become convenient for them in preparing, maintenance of accounts for SMEs.

Article Details