E-accounting or online accounting is the use of online and Internet technologies to the business accounting function. It is similar to e-mail being an electronic version of traditional mail. E-accounting is the electronic usage of lawful accounting and traceable accounting processes which were 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 through a web application 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 does not have a standard definition but merely refers to the changes in accounting due to computing and networking technologies. Most e-accounting services are offered as SaaS;‘software as a service’ such as cloud services.
The uses 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.