Question

A Self-Help Group (SHG) is an informal, self-managed voluntary group of 5-20 individuals, who come together to address their common problems and are generally engaged in credit and savings activities operating on principles of mutuality and solidarity. Most SHG members are minimally educated. Regardless, every SHG should
be aware of the status of its outstanding loans to members, the status of its loans from external institutions and the member payments due. Book-keeping is a difficult task for SHGs.

Now, discuss on the following points:

How do SHGs maintain their accounting?

Do you think that financial accounting system is suitable for all businesses?

Answer 1

Answer: Accurate book keeping is essential. This program was first started in Gujarat. In India books are used to maintain records. It is true that bookkeeping is a difficult task. That is the reason why most of the people in villages are adopting mechanical ways to maintain their accounting.Computers are being used now a days to keep track of all accounts