ACCOUNTING PRACTICES & CHALLENGES: A STUDY OF WHOLESALE & RETAIL BUSINESSES IN INDIA
DOI:
https://doi.org/10.53555/4p0q5661Keywords:
Accounting practices, Wholesale and retail businesses, MSMEs, GST compliance, Digital paymentsAbstract
Wholesale and retail businesses play a vital role in the Indian economy, particularly within the micro, small, and medium enterprise (MSME) sector. Despite their economic significance, these businesses continue to face numerous accounting-related challenges that affect their operational efficiency and financial sustainability. The study examines accounting practices and challenges among wholesale and retail businesses operating in Delhi. Using a descriptive and analytical research design, the study analyses primary data generated from a sample of 171 businesses. The analysis employs descriptive statistics, mean score analysis, independent sample t-tests, and correlation analysis to evaluate accounting systems, payment practices, and perceived accounting difficulties. The results indicate widespread adoption of computerized accounting systems and digital payment modes. However, businesses experience moderate to high levels of accounting challenges, particularly in GST compliance, working capital management, and cost inflation. Wholesale businesses report higher accounting complexity compared to retail firms, reflecting differences in transaction scale and operational structure. Correlation findings suggest that accounting challenges are interrelated, contributing collectively to overall accounting complexity. The study highlights the need for improved accounting support, compliance simplification, and enhanced financial literacy to strengthen accounting practices in the trade sector. The findings offer useful insights for policymakers, practitioners, and researchers concerned with accounting issues in emerging market economies.
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