Accounting for Small Business Essay

ABSTRACTSMEs play a very essential role in Indias economy and have a bang-up potential for strengthening the real firmament in India. But thither has non been appropriate infrastructure yet which is be dust to channelize the personal credit line feasibility.Traditional business in Indian Villages had been started by a family and ancestors, but has gotten bigger forthwith. This business has many strengths and weaknesses. Based on the gibe and background, the proposed- method of accounting g all overnance has been get outed. It has been alike successfully tested for a calendar month effect and revised. Adding companionship management into accounting administration is an alternative way to develop the proposed-accounting system. The four modes of knowledge creation will facilitate the business and its owner to add several(prenominal) modules in accounting system and to reengineer the business process. apprehend more Distinguish between problem- focused coping and emoti on-focused coping Essay accounting entry clarified business plays a very important role in Indias economy, particularly in aspects increased employment, income generating, economic reading. In addition, this sector is considered as a driving force for the rural economy. But until now there are still many problems to hinder the elflike business growth. Facts in the Asia Pacific region revealed that Small and Medium Enterprises (SMEs) employ rough 60 percent of the workforce. Only 10 percent of the total companies in Asia Pacific which is a big business, the rest are SMEs. For India, accord to Small & Medium Business Corner (SMBC) data in 2012 the numbers of micro, small and medium opening moves develop into 130 Lakhs (http//www.smeindia.net/export_schemes/OverviewofMSME.html) by heavy(p) employment to 410 Lakhs batch and able to contribute to the total national GDP amounted to 8-9 percent in 2012.Basic problem of management in small business is inability of owners to determin e their management style that appropriate with the business need and development stage. In early stage of business, family management style leads to one-man assign. jibe to improvement of business environment, that conventional style could not be pushed longer. oddly in financial management, the business owners could not be able to abstract the financial management of business and family yet. Besides, they have not well planned, managed and report periodically yet. It is caused by there is no appropriate infrastructure which is accounting system. The impact is that the owners of small business have difficulties to cooperate with external such as bank or another financial institution. The owners have difficulties to show their feasibility business when they want to propose credit or stain a business contract with another business.Based on the brilliance of an accounting system, this seek results a proposed-accounting system which can be utilise by owners of small business in India. The proposed-accounting system is a generic wine model of purchasing and selling system that should be enhanced according to business need and by refer to the knowledge management approach. publications REVIEWACCOUNTING SYSTEMAccording to Gillespie, accounting system is an nerve of document, form and report which is managed to provide information for management. Based on that definition, elements of accounting system are documents, forms and reports, but still concern with procedure and intimate control. in that respectfore, proposed-elements in this take away will refer to it.SMALL BUSINESS under the law of Micro, Small and Medium Enterprises (2008), definition of SMEs in India is explained by the display panel below. Based on the definition, the research object is categorized as a small business.DEFINITION OF SMES IN INDIAEnterprises engaged in providing or translation of services (i) A micro green light is an endeavor where the investment in equipment does not ex ceed Rs. 10 lakh (ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore and (iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.Enterprises engaged in the manufacture or production, processing or conservation of goods (i) A micro enterprise is an enterprise where investment in whole works and machinery does not exceed Rs. 25 lakh (ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore and (iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.SYSTEM DEVELOPMENTSystem development in this study will follow the three main travela.System analysisActivities in this stage are initial study, feasibility study, compulsion definition, and specification system a rrangement. b.System design After finishing system analysis, the next activities are system design, system building and system testing. c.System carrying into action Based on system testing, a revised system will be established. Finally, system is enforced and operated. At this stage, company will conduct maintenance activity.RESEARCH methodological analysisSince this study wants to develop a proposed-accounting system, Research and development approach which is use in this study is a research program that is followed by a development program. It is a combination of descriptive study that describes the actual phenomenon in an object and exploratory research that develops a proposed -accounting system. A proposed-accounting system is focused on purchasing and selling system since those are the main activities in the business.The location of this study, Traditional small business in Indian Villages, was elect on purpose, because this business in the Villages has significantly improv ed in gross revenue and human empowering, also government is paying attention by giving assistantship for both management and technology. Primary data of this study was the results of guided interviews and observation.The steps of this study are designed as followa.Initial study preceding research was conducted to comprehend previous studies and literature, guided questionnaire drafting, and Traditional business understanding.b.System requirement definingAt this stage, the data was obtained by interview with business owners and observation directly to the business. By understanding the research object condition and background, also the strength and weakness, the accounting system requirement could be defined.c.Development of proposed-accounting systemAt this stage, development of proposed-accounting system was managed by interviews, observation, and group discussion among owners, researcher and government, related to main accounting system elements, which are document, form and rep ort. In its development, knowledge management approach was proposed to use since it can facilitate business occasional operation into business standard operation. The result of this stage was a proposed-accounting system.d.Testing and implementationTesting was accomplished by implementing the proposed system to handle a month transactions. Owners and their staff used it to run transactions of purchasing and selling for a month. By running the system, problems were found and then they were used to revise the system. At this stage, a revised-accounting system was established.e.Conclusions and recommendationsIn the final stage of this study, conclusions and suggestions from all research processes were stated.RESULT AND DISCUSSIONPROFILE OF TRADITIONAL BUSINESS IN Indian VILLAGESIndia is one of the major exporter and supplier of handi cunnings and gift products to the world market. The Indian handicrafts diligence is highly labor intensive and decentralized, being spread all crossway s the country in rural and urban areas. The sector is considered as the punt king-sizedst employment-generating sector after agriculture with numerous artisans engaged in craft work on a part-time basis. The industry offers employment to over 6 million artisans, including a large number of women and people from the weaker sections of society.The stick day handicraft tradition of India is a perfect example of engrossment between the traditional designs and modern techniques. The fast growing demand for Indian handicraft and gifts products have made this sector a full-fledged large scale organized industry that is growing day by day. billThe rich history of Indias craft tradition has evolved over the centuries pass a legacy of Indian culture promising everything beauty, dignity, form and style. The conformation is comprehensive and ranges from age-old stone carvings to modern handicrafts making use of nut flints and mirrors. The most popular crafts, include metalware, earthenw are, pottery, sculpting, woodwork, hand-printed cloths and scarves, embroidered and crocheted goods, shawls, zari products, stone carving and imitation jewelry.There is a myriad of art and craft traditions in India that depend on social, economic and regional factors. The present status of the sector in India owes lots to the rich crafts history and tradition of the past. Majority of the crafts from the past continues to flourish collectable to their utilitarian characteristics, availability to the common people and popularity in domestic and spherical markets.Today, some of the sectors within the craft industry have even cause full fledged industries in their own, like carpet weaving, traditional textile (Banarsi silk sari, Chikankari etc), gem nifty and polishing, jewelry making, the world famous diamond cutting and polishing industry, brassware, jute products, etc. The growth of these industries is due to their ever-increasing demand and the popularity of Indian crafts in t he domestic market and overseas. Gems and jewelry, carpet making, metalware, leather products, jute products etc. are some industries, which are growing rapidly.