Executive Summary

This white paper introduces a transformative approach to accounting systems, moving beyond traditional, siloed platforms toward intelligent, networked financial ecosystems. Inspired by how networking revolutionized personal computing, Third Generation Accounting (3GA) aims to deliver similar breakthroughs in financial operations — enabling real-time collaboration, multi-party reconciliation, and seamless transaction management across entities.
Designed for both SMEs and large organizations, 3GA emphasizes simplicity, automation, and interoperability. It leverages modern communication technologies and computing power to overcome long-standing limitations in accounting practices.

Key Innovations

Internal vs External Transaction Framework
Smart Voucher System
Universal Reconciliation System (URS)
Tri-Party and Multi-Party Transaction Model
Dynamic Ledger Visualization
Real-Time Transaction Lifecycle
Inventory Integration
Linear Reconciliation Model
Front-End Compatibility

Benefits

Efficiency: Reduces manual reconciliation and follow-ups.
Accuracy: Ensures synchronized entries across entities and stages.
Security: Uses cryptographic protocols for transaction integrity.
Scalability: Supports SMEs and large enterprises alike.
Interoperability: Integrates with existing systems and workflows.
User Experience: Intuitive interfaces and minimal data entry.
Automation: Auto-fills confirmations and generates reports dynamically.
Production Line Integration: Tracks material and financial flows across operational stages.
Real-Time Insights: Provides up-to-date views of ledger, reconciliation, and inventory status.
Audit Readiness: Maintains transparent logs and lifecycle tracking for compliance.
Knowledge Empowerment: Every user becomes accounting-aware through regular use.
Democratization of Accounting: Accounting literacy becomes a natural skill through daily interaction.
Digital Transformation: What the internet did for PCs, third-generation accounting will do for financial systems.
Bridging Mercantile and Cash Basis Accounting: URS enables transparent reconciliation between entities using different principles.
Audit Simplification: Shared URS views eliminate manual balance confirmations.

Additional Perspective

Transacting Power to All

The essence of 3GA is empowerment. By decentralizing transaction control and making accounting intuitive, every stakeholder — from small vendors to large corporations — gains equal capability to manage and verify transactions. This democratization ensures:

Transparency: Every transaction is traceable and verifiable.
Inclusivity: SMEs and individuals can participate without complex setups.
Education: Daily interaction fosters natural accounting literacy.

Future Outlook

The upcoming book, Third Generation Accounting – Transacting Power to All, will provide detailed frameworks, practical examples, and methodologies to implement these concepts effectively.

Conclusion

Third-generation accounting systems represent a paradigm shift in financial technology. By embracing networked collaboration, smart automation, and secure protocols, they redefine how businesses manage transactions and relationships. This vision is not just an upgrade — it’s a reinvention of accounting for the digital age, empowering users, streamlining operations, and transforming financial ecosystems.

Sunday, June 11, 2023

New Revolving Deposit Scheme for NBFCs

Revolving Deposit Scheme

It is a new kind of deposit which is aimed at easing your liquidity in the future by saving with Systematic Investment Plan while you are active and getting back with monthly payments for the next five years progressively increasing every year. It is NOT INSURANCE, but ENSURANCE to beat the inflation.

What’s the Scheme?

You invest every month Rs. 10,000/- for the first Five Years. The Next Five Years your investment will be returned as a monthly re-payment starting from Rs. 12,500/- at the Sixth year with progressively increasing amount every year like 15,000/-, 17,500, 20,000 and 22,500 for the Seventh, Eighth, Ninth and Tenth Year respectively. At the end of each year, TDS Certificate will be issued for the Interest amount credited and reinvested after TDS. Special basic interest rate adopted for this scheme is 11.75% p.a. with monthly compounding. Following Tables give the Self Planned Pension Types:

	Scheme1		Scheme 2		Scheme 3
Year	Monthly Deposit	Amt per Year	Monthly Deposit	Amt per Year	Monthly Deposit	Amt per Year

1	10,000	120,000	10,000	120,000	10,000	120,000
2	10,000	120,000	10,000	120,000	10,000	120,000
3	10,000	120,000	10,000	120,000	10,000	120,000
4	10,000	120,000	10,000	120,000	-12,000	-144,000
5	10,000	120,000	-12,000	-144,000	-14,000	-168,000
6	-12,500	-150,000	-14,000	-168,000	-15,500	-186,000
7	-15,000	-180,000	-16,500	-198,000	Monthly	Yearly
8	-17,500	-210,000	-20,000	-240,000	Return	Return
9	-20,000	-240,000	Monthly	Yearly
10	-22,500	-270,000	Return	Return
	Monthly	Yearly
	Return	Return

Scheme1

Self Planned Pension - Pay every month Rs. 10,000 for 5 Years

Get Repayment every month from Rs.12,500 to 22,500 for the next 5 years

Scheme2

Self Planned Pension - Pay every month Rs. 10,000 for 4 Years

Get Repayment every month from Rs.12,000 to 20,000 for the next 4 years

Scheme3

Self Planned Pension - Pay every month Rs. 10,000 for 3 Years

Get Repayment every month from Rs.12,000 to 15,500 for the next 3 years

	Self Planned Pension Scheme 1

Year	Amt Invested	CumulAmt	InterstCredtd	TDSamt	Accr.Amt
1	120,000	0	0	0	120,000
2	120,000	134,880	14,880	1,488	253,392
3	120,000	284,820	31,428	3,144	401,676
4	120,000	451,500	49,824	4,980	566,520
5	120,000	636,792	70,272	7,032	749,760

	Amt.Received
6	-150,000	842,760	93,000	9,300	683,460
7	-180,000	768,240	84,780	8,484	579,756
8	-210,000	651,672	71,916	7,188	434,484
9	-240,000	488,376	53,892	5,388	242,988
10	-270,000	273,132	30,144	3,012	120

Invested	600,000		166,404	16,644
Recevd	-1,050,000		333,732	33,372

AddlRcvd	-450,000		500,136	50,016
TDS			50,016
Balance		<<	450,120	>>	120