Published Paper Details:

In the Indian economy, the MSME sector plays a vital role as it creates a large number of employment opportunities and contributes a significant portion of the GDP of the nation. MSMEs are the second-biggest employer in India after agriculture. In India, 31.6 million MSME units were registered in the last three years (i.e. from July 2020 to December 2023). Financial accounting practices are one of the utmost substantial areas of management of all enterprises, whether it is small or large, to survive in the long run. This study is conducted in the Kamrup district of Assam to know the system of financial accounting practices followed by MSMEs and the impact of the level of knowledge of entrepreneurs on the accounting practices of MSMEs. Primary data is collected from 120 registered manufacturing enterprises. The study revealed that the level of awareness of accounting among entrepreneurs and the level of education of entrepreneurs affect the accounting practices of MSMEs. From the findings of the study, it is concluded that the system of financial accounting followed by enterprises, especially in the case of micro-enterprises, is not adequate to provide all the required financial information to the management.