SaaS Metrics, Ecommerce Reconciliation & Statutory Audits
Accounting and auditing requirements vary by entity size, business model, and statutory regulations under the Companies Act, 2013.
| Standard category | Current verified position | Key requirement |
|---|---|---|
| Statutory Audit (Companies) | Mandatory annual audit of company financial statements under the Companies Act, 2013. | Applies to all private and public limited companies regardless of turnover. |
| SaaS Revenue Recognition | Aligning accounting with Ind AS 115 / IFRS 15 for subscription contracts. | Requires tracking MRR, ARR, LTV, CAC, and deferred revenue schedules. |
| Ecommerce Reconciliation | Reconciling sales invoices with payment gateway receipts and marketplace reports. | Auditing TCS under Section 52 and marketplace commission invoices. |
| Internal Audit (Turnover) | Mandatory internal control audits for companies exceeding thresholds. | Turnover > Rs. 200 Crore or outstanding loans/deposits > Rs. 100 Crore. |
What a serious auditor should verify
- Management Accounts & MIS: Monthly P&L, Balance Sheet, Cash Flow statement, AR/AP ageing report, and key business metrics (burn rate, gross margins).
- Concurrent Audit: Real-time, continuous audit of bank branches or high-volume transactions to prevent leakage and ensure compliance.
- Stock and Inventory Audit: Verification of physical stock against books to identify variance, shrinkage, or write-off items.
- Accounts Payable/Receivable: Maintain clean vendor aging reports and follow up on outstanding credit periods.
Documents for accounting and statutory audits
- Trial balance, ledger files, and bank statements for the audit period.
- Sales and purchase invoice registers.
- TDS, GST, and payroll returns history.
- Physical stocktake reports and bank confirmation letters.
Accounts Payable and Receivable Management: year and source check
Last fact-checked: 18 June 2026.
Direct and indirect tax laws, corporate filings, and compliance rules are subject to change by CBIC, MCA, EPFO, and RBI notifications. Always verify circulars before executing a transaction.
Use official government portals (such as GST portal, MCA V3, e-filing portal, and TRACES) first. Articles and competitor calculators should be treated as guidance, not legal advice.
FAQs
Is a statutory audit mandatory for all private limited companies in India?
Yes. Under the Companies Act, 2013, every private limited company must appoint a statutory auditor and undergo an annual statutory audit, irrespective of its turnover or capital.
What is the threshold for mandatory tax audit under Section 44AB?
A tax audit is mandatory if business turnover exceeds Rs. 10 Crore (provided cash transactions are <= 5% of total transactions) or Rs. 1 Crore (if cash transactions exceed 5%). For professionals, the limit is Rs. 50 Lakh.
How does SaaS accounting handle subscription revenue?
Under Ind AS 115, subscription revenue must be recognized over the performance period (monthly/quarterly) as the service is delivered, rather than recognizing upfront collections on day one. Unearned fees are deferred to the balance sheet.