E-accounting is the application of online and Internet technologies to the business accounting function. Similar to e-mail being an electronic version of traditional mail, e-accounting is "electronic enablement" of accounting and accounting processes which are more traditionally manual and paper-based.
E-accounting involves performing regular accounting functions, accounting research and the accounting training and education through various computer based /internet based accounting tools such as: digital tool kits, various internet resources, international web-based materials, institute and company databases which are internet based, web links, internet based accounting software and electronic financial spreadsheet tools to provide efficient decision making.
Online accounting relates to accounting that can be done on the World Wide Web. It usually implies use of a web application that works through a browser without buying or installing any software. It is typically based on a simple monthly charge and zero-administration approach to help businesses concentrate on core activities and avoid the hidden costs associated with traditional accounting software such as installation, upgrades, exchanging data files, backup and disaster recovery.
E-Accounting helps to keep financial data and accounting applications in a safe, secure environment. Access can be provided to permitted users regardless of their location.
Process of E-Accounting
➢ With data in a secured and centralized environment, all users are able to access the data as & when they need.
➢ Business with multiple locations can all work in real-time on a single set of books which can be reviewed from any location.
➢ It's a true multi-user system that provides all the same functionality of a local network.
➢ Head offices, Branches, Sales offices, Production Centres, Accountants, Internal & Statutory Auditors etc., can all work on the system at the same time with different levels of password.
Access of Data:
➢ No one can have access to the data without express permission.
➢ The data is backed up regularly and moved off-site to a remote location.
➢ The data is stored on a multiple hard drive system, called R.A.I.D., every time it is saved, to protect it from hardware failure.
Access to accounting
➢ At any time from any Internet capable PC one can use encrypted password to look at the accounting records.
➢ The data is always updated and accurate.
➢ It is secure and dependable with 100% real time backup.
➢ Security measures are taken to make sure that the information is protected.
➢ Clients can create own passwords, so no one (not even the ASP) can have access to the passwords.
➢ As the data travels over the Internet, it is protected by a technology called Secure Sockets Layer or SSL encryption. SSL ensures that the data reaches its location before it can be decoded.
➢ For added security, the clients need to make sure that their browser supports 128-bit encryption. This level of encryption is one of the best currently supported by consumer web browsers.
Purpose of E-Accounting
✓ Accounts Payable
✓ Accounts Receivable
✓ Job Costing
✓ Financial Write-up and Reporting
✓ Bank and account reconciliations
✓ Quarterly Tax Reporting
✓ Compliance Reporting
✓ Tax Return Preparation
✓ Internal financial consultant
✓ Establish the control system
✓ Inform those concerned of financial condition
✓ Supply the business with adequate information
✓ Maintain contact with government agencies, bankers, etc. ✓ Provide insight, courses of action
✓ Facilitate future planning and growth
➢ No need of in-house bookkeepers' training and expertise ➢ No problems with employee turnover, vacations, sick leave and absenteeism ➢ No...