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ABSTRACT
The aim of the present study is to review E-Accounting. The article the data collection instrument of
which relies on laboratory method will explore the topic in a descriptive-analytical way. An attempt was
also made to review the concepts, i.e. accounting, e-accounting, the necessity of e-accounting application,
model, functions, features, advantages and disadvantages of e-accounting, in the first place. The rules of
accounting passed in 1977 as well as the manuals proposed by Accounting Association in 2000 in the
field of financial accounting, and using data electronic media, a change has been made in recording,
transferring, and storing information so that using digital technologies such as the internet and mobile
phones rather than registration of documents on papers has brought up a change and development with
respect to financial accounting. Therefore, it can be claimed that the atmosphere of business would
undertake necessary flexibility by using the instrument, and financial data can be easily and conveniently
accessible to users using computer networks as well as a variety of software application irrespective of
vocational and geographical positions, which in turn lead to better and faster function within transactional
space as well as bringing about saving of time, accuracy, and social value.
INTRODUCTION
Today, advanced electronic technology has extensively brought about constant change and development
in various departments of accounting, identification, measurement, record, as well as financial reporting
from industrial and economic point of views. This evolves into a vital issue when invoking premier
electronic information technology and using the tools for enterprises and institutions. Therefore, as
accounting literature suggests, most companies, institutions, departments would lose their energy,
accuracy, and social value without regard to this issue; per contra, organization management may expose
its weakness of knowledge, while the use of the technology can facilitate business and administrative, or
personalized communications so that one can achieve true objectives, and offer saving of cost and time in
the current situation. The breathtaking pace of the ongoing research across the globe and massively
compacted information via worldwide web can growingly deepen the information gap for those who are
deprived of necessary knowledge and expertise in an attempt to take benefit from the information. In the
process of accounting, a service used by the premier electronic technology, can itself bring about change
in accounting methods so as to show better and faster performance.
Definition of Accounting
There are a variety of definitions on accounting. In the past, it was referred to as identification, record,
classification, summarization of, as well as reporting, financial events. More recent definitions views it as
an information system; i.e. it includes a system of information that makes necessary information available
to accounting information users through identifying, recording, classifying, summarizing, and reporting
financial events.
The Concept of Electronic Accounting
The changes of technology and constant growth of information and communication technology use are
extensive, which exerts a growing effect on commercial units in general as well as commercial processes.
The process of organizing, recording, processing, and reporting commercial events is evolving every day.
The global advancements in information technology would make information accessible more and
quicker as well as keeping it update. Given the factors, there is no more need to justify the use of
information technology in the modern world. This makes it unavoidable for accounting to apply and use
Copyright 2014 | Centre for Info Bio Technology (CIBTech) 1824
Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231 6345 (Online)
An Open Access, Online International Journal Available at www.cibtech.org/sp.ed/jls/2015/01/jls.htm
2015 Vol.5 (S1), pp. 1824-1829/Hamid and Khorramin
Review Article
the whole or part of new methods in offering services and meeting their obligations. For example, the
instances being used in accounting and information technology are regarded as electronic financial
reporting, which allows for financial information communication with beneficiaries via the internet.
Therefore, such new technologies as the internet and mobile phone are viewed as the key to operational
field and commercial unit activity development and the growth of new opportunities in the units. E-
accounting is a new developed concept in the field of accounting. As a matter of fact, if someone intends
to define it, he needs to define the internet application and the internet technologies. That is to say, the
whole size of operations and transactions such as a website, weblog can be recorded in an online serve or
database. However, in order to do transactions and operations, we need username and password; in which
case user can easily get access to database by choosing them. E-accounting invariably offers a wide
application of data processes and operation via the internet that entails other aspects such as registration,
storage, business activity, production management, procurement and distribution, goods transfer, as well
as after sales service. In sum, electronic accounting revolution has a process-oriented effect. This is
feasible by the use of information banks and worldwide networks. At this moment, International
Accounting Federation has examined all the instruments necessary for E-accounting development and
education, which in turn compatibility and synergy will be followed at international levels. A multitude of
accounting enterprises take benefit from the services internationally. As for the enterprises, overall
discussions on journal office, ledger, record and book keeping, cash management, receivable and payable
accounts, asset management, financial analysis, financial reporting and financial statements can be
pursued online using electronic services.
Statement of the problem and the need for research
The use of E-accounting and the internet are a fast and easy way to perform activities, transactions, and
information at national and internal level, which in turn can help the establishment of communication
better. The application of E-accounting is growingly underway in the face of economic crises. One of the
key questions raised in this respect, given the frequent uses of information and communicative
technologies such as mobiles, emails, computer systems, tablets, electronic payment transfer, as well as
growing interest of people in the technologies and the advantages of using them, is how we can create a
suitable, safe, and reliable space for individuals and enterprises to make case for the advantages and
services offered by them, since one of the key challenges is to gain institutions and individuals trust in
electronic services so that one can reduce available risks in doing so.
The Need for the Application Of E-Accounting
One of the aspects of information technology effect on enterprises and institutions is quantitative and
qualitative changes of information and accounting management systems. And one of the leading
developments is that of data and activity exchange, as well as the expansion of intranet and internet
information networks. Consequently, we can claim that the role of electronic information networks in
releasing financial and business information of organization is unavoidable. Breakthroughs in this regard
have created new expectations based on online information access and immediate reporting. Meanwhile,
the internet is an information technology that takes on the greatest responsibility for altering professional
processes, so we should not the role of planning systems
A wide range of various activities were skipped by (ERP). Planning for human resource which in sum
involves it and aims to gather the whole amount of data and processes of an organization within a single
system, and finally to improve the performance of an organization with seller and customer system, which
leads to an organization of resources planning in a firm. Capable technology was intended for such e-
accounting systems, which is accomplished by means of internet.
The Function of The Internet
The growing development of information and communication technologies, especially the rise of the
internet, have had a remarkable effect on business and economic relationships of commercial unit. Today,
relying on the technologies enterprises and organizations managed to change their own practices to such
an extent that they are able to perform activities with the least time and the best quality and the lowest
price, i.e. e-accounting is the best possible way to reach the goal. To do so, the need for internet is felt
Received Benefit: It refers to a level of recognition associated with benefits that the technology of data
electronic exchange can have; the benefits can be obtained directly, such as the reduction of transaction
costs, high quality of information, or it is obtained indirectly which refers to the opportunities influencing
communicative processes of commercial unit, say the increase of operational efficiency and better
customer service offering, and the ability of enterprise competitive increase
Preparation: It refers to a level of financial resources and technology of company. The preparation is
associated with financial benefits available for paying the charge of installation, improvement, and its
implementation as well as current expenses over during the use, when the enterprise is ready enough to
receive the information technology.
External Pressure: It implies the compatibility and effect of organizational environment; the
compatibility would give rise to further competitive pressure and the ability of commercial unit partners
to exchange electronic data.
Sincerity: It refers to the veracity and trust built between commercial enterprises in different sizes and
customers and agencies as well as acting as contributing factor in the compatibility of E-accounting
systems and further coordinating and sharing information data.
Functions of E-Accounting
In the accounting literature, E-accounting is defined as documentation, recording, archiving, summarizing
economic events inside and outside organizations related to commercial unit, offering the summarized
information to interested parties in an electronic environment. The definition can include three categories,
e-tax system, e-banking, as well as preliminary e-accounting. In the process of electronic tax system,
events such as the preparation of tax rates, tax documents, and tax-related liabilities and other related
information can occur in an electronic environment. The policy of e-banking, including bank transaction,
follows an economic construction that occurs in an electronic environment via the internet. Moreover,
CONCLUSION
Today, change and development in technology bring about change in different parts of accounting.
Therefore, change in recording as well as activities and controlling over transactions and saving in time
and cost is one of the important aspects and conceived as advancement using electronic technology so as
to bring better performance of organization. The technology is viewed as a revolution in changing
accounting, which is called e-accounting. Thus, it is imperative for all the related governmental and
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