E-ACCOUNTING: THE NEED OF MODERN BUSINESS Prof.SantoshPrakashDhawale*1, Prof. SudarshanArjunGiramkar*2 *1(1Asst.Prof at Dattakala Faculty of Management Bhigwan pune) *2(HSBPVT S, Institute of Management, Kashti, A-Nager) santoshdhawale@gmail.com*1,sudarshangiramkar11@gmail.com*2 ABSTRACT- Accounting is one of the important functions of every organization; it is also called as the mirror image of the business. It is observed from the various studies in India that still many organizations are following the traditional practices of the accounting. The traditional accounting is very time consuming process of accounting and for the result there is require waiting for the finalization of the year or accounting so the traditional accounting is a postmortem process. Compare to modern accounting which reflect 480.4% growth between 2000-11. practices we can get results on one click to computers and it having the best benefit for the tax purpose also, we can get the business position as KEY WORDS- Traditional accounting, modern accounting, E-marketing, E-shopping, E-banking, E-taxing, financial software, etc. organization, preparation of documents necessary for the tax purpose, providing information support to many other organizational functional areas, and so on. Prior to the advent of personal computers, businesses were limited to manual methods for keeping track of financial data. Internet users are incessantly growing up. According to internetworldstst.com there ware 36,09,85,492 till Dec 31,2000 in the whole world and 2,095,006,005 users still March 31, 2011 This tremendous growth created many openings in varied spheres of like E-marketing, E-shopping, E- HRM, E-CRM, E-mail, E-banking etc. So, it can be per any require area of the business. In modern said that today s world is internet driven world in days there are many financial software s are which everything is enabled. In the same beat, now available in the market which can make the accounting is possible anywhere, anytime through accounting easy one. internet which is known as Online Accounting or.e-accounting is new development in the area of accounting and there is lock of knowledge about this new concept. Thus the objective of this paper is to get familiarity with e-accounting and to motivate small scale business to adopt e-accounting. INTRODUCATION- Accounting plays a critical role in the success or failure of contemporary business institutions. Accounting systems are responsible for recording, analysing, monitoring and evaluating the financial position of business E-Accounting is new development in field of accounting. It means all your transactions will record in online server or data base. E-Accounting involves performing regular accounting functions, accounting research and the accounting training and education through various computer based, 1
internet based accounting tools such as digital tools kits, various internet resources, international web- based material, institute and company database which are internet based, web links, internet based accounting software and electronic financial spreadsheet tools to provide efficient decision making. An E- accounting could be thorough of as an inter- organizational system because of its capability to electronically integrate a set of firms. In many operational applications the accounting entries can be generated as a by-product of the underlying transactions. A computerized accounting system is able to handle financial data efficiently, but the true value of an accounting system was that it was able to generate immediate or seller, keeping and registering documents, and preparing financial tables in an electronic environment and submitting those to related person via internet. In other words 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 term is a originally coined by Joanie Mann at InsynQ one of the founders of ASP industry, and was introduced in 1998 along InsynQ hosted quick books offering under the banner of InsynQ Accounting solutions, and later CPAASP. reports regarding the company. E-Accounting involves performing regular accounting functions, accounting research and the accounting training and education through various CONSUPUTUAL BACKGROUND- computer based/internet based accounting tools such as: digital tools kits, various internet Electronic accounting can be defined as to follow resources, international web-based materials, internal and external operational events as well as institute and company databases which are internet to document, records, archive, summarize, those based, web links, internet based accounting events and to present summery information to the software and electronic financial spreadsheet tools visited interest groups in an electronic to provide efficient decision making. environment. It is possible to analysis the electronic accounting concept in three categories, In short e-accounting is these such as e-taxing, e-banking and e-pre accounting of internet technologies to the organizational practices. In e-taxing practices, transaction such as accounting purpose. In this process, accounting preparation of tax return, imputation of taxes and records exist in digital form instead of on paper. following tax related debt and other related It is accounting information system, where information occur in an electronic environment. E- sources records, transaction and accounting entries banking practices consist of enterprise bank related are received, reported and filed within or outside transaction that actually takes place in an electronic the organization electronically. environment via internet. E-preaccounting practices are composed of actions such as following the transactions conducted between firms and customer 2
STATEMENT OF THE PROBLEM- Patel. K.J. (2011) expressed his views in his research article entitled adoption and Impact of E- The present study is designed to focus on the topic of E-Accounting practices adopted by the modern businesses. It is found from various studies that many organization are getting failure in the Accounting, that, how E-Accounting is adopted in any type of business organization. He also explained the overall impact of E-Accounting in the business concern. business not because of availability highly technology, poor quality of material, not availability of train staff, management problems but main reason is the accounting practices adopted by the businesses. So it is need of day businesses must have to adopt E-Accounting practices as replacement for the traditional practices. Hence the researcher has OBJECTIVE OF THE STUDY- The main objective of present research study is as follow- To study the conceptual background of the term E- Accounting. selected E-Accounting: The Need of Modern Business. To study and examine the benefit & disadvantage of E- Accounting. To study the various accounting and financial LITERATURE REVIEW- software using by the business. Amidu M and Abar J.(2005) express their views in their research article titled Accounting Information and Management of SME s in Ghana, that, there is a urgent need of application of information Technology while writing accounts in a business organization. RESARCH METHODOLGY- The said research study is based on secondary data. Such secondary data is collected from various reference books related to E-Accounting, Financial Doost R.K(1999)explained in his research article titled Computer and Accounting where do we go from here, that computer are playing a very important role in the age of globalization. Ovakolian H. (1995) states in his article entitled PC- Based financial software: Emerging options, Industrial Management and Data System, that, significance of the computer and financial software in Industrial Management of an organization. Accounting, Corporate Accounting, E-Auditing, Trade Commerce, Industry, Economic, and Management. The secondary data is also collected from various website and other related literature and reviewed it. For the said research study secondary data is also collected and reviewed from the various national and International Research Journals which are related to E-Accounting and E-Auditing. 3
NEED OF E-ACCOUNTING 5. E-accounting may improve the effectiveness of accounting and reporting task, budgeting, Normally, every businessman wants to access or control its financial data or accounts from controlling and auditing which may reflect on the organization effectiveness as well. anywhere, any time in a secure environment. If a person is outside the country or far from his office and his financial data is in the office or at the desktop of his computer, than how does he access the required information? If you take of your laptop with yourself than it will hinder your accountant 6. Almost all purchase and incomes are already tracked by your bank accounts and credit cards. So, instead of re-typing everything in to your desktop accounting software or spreadsheet you can import the transaction securely and automatically. job. If you take copy of your account in any portable device, it will have to be updated time which is again wastage of time and it may lose or many become part of another problem. So, only solution is E-Accounting. E-Accounting maintains 7. Organization entire accounting project can be easily outsourced by accounting system. 8. It generates employment opportunities for software developer and accountants. your financial data in a safe environment. In this process, you have a password can access the accounts. It means only authorized persons can access. E-Accounting has visited in India a rainbow of opportunities. DISADVANSTAGES OF E-ACCOUNTING Data security problem. Speed of broadband connection. BENEFIT OF E-ACCOUNTING- Network connectivity problem. Following are the benefit associated with the use of Required ability to uses. E-Accounting. Fair of losing your customer data base. 1. Save time and money. Lock some features available on the offline office 2. Gain greater control of finance by moving from suites. paper records to computerized accounting software. 3. Transaction that affects your bank account can be sent automatically to the online accounting application. 4. Send sales invoice and other document directly to another business accounts for the recipient to approve without having to reenter the information. CONCLUSION- Due to technological progress, both the preparation of a document and arrangement of accounting records have been carried out in electronic environment. The fast development experienced in information technologies have impact on all professions as well as the people carrying out 4
accounting profession. By means of these 2.suleman, YUKCU and Seckin GONEN, Fraud development, benefiting from the information auditing in Electronic Accounting practices, generated by the accounting system that has come to a level that generate extremely various African Journal of business Management, Vol-6(4), pp.1222-1233, Feb,2012. information in a short time completely by the 3. Mohammed Amidu, John Effah and JoshunAbor, information users and approval of the reliability of E-Accounting practices among Small and Medium that information by unrelated third person are very important. Enterprises in Ghana, Journal of Management policy and practices, vol-12(4)2011. In other words electronic accounting practices have provided saving of time, synchronous and 4Shradha Verma, E-accounting : Problem and comparable presentation of financial statement become easier. On the other hand, the electronic audit concept has been brought forward by carrying Prospects, Finance and Investment E-accounting Problem and Prospects. 5. Hall J. (2007) Accounting information system. out the audit activities through electronic Ouebec, Canada: Thomson Higher edu. environment by means of electronic entries and documents. 6.Marriott. N and Marriott, P( 2000), professional Accountants and Development of a Management The Study provides strong evidence that the use of Accounting Service for the small firm : Barriers E-Accounting has contributed to the effectiveness and possibilities, Management Accounting of task as expected. The Study show that use of E- Resarch,11(4). Accounting may improve the effectiveness of accounting and reporting task, budgeting, 7. Mitchell, F Reid, and smith J (1998), A case for controlling and auditing which may reflect on the organizational effectiveness as well. An improved quality in the system may provide better support for researching Management Accounting in SME s, management accounting : magazine for chartered Management Accountanats,76,30-33. the task performed by the system. This study finds that the most significant impacts of E-Accounting are on accounting and reporting and budgeting task performance respectively. 8. www.ecomstor.com 9. http://en.wikipedia.org/wiki/e-accounting REFEERNCES 1.Dr.Sanjay Kumar and Preetijain, What and Why E-Accounting? The Economic Challenger, no- 14. Issue -55, April-June-2012. 5