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.
  • Payroll.
  • 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.