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E-Accounting Problems & Propects

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E-Accounting: Problems and Prospects

Shraddha Verma Assistant Professor G.C.R.G Memorial Trust Group of Institutions Lucknow

Abstract

E-Accounting refers to Electronic Accounting, a term used to describe an accounting system that relies on computer technology for capturing and processing financial data in organizations. The manual accounting systems consisted of paper ledgers, typewriters and calculators. Typewriters were used to type invoices and cheques, and all calculations were performed using calculators. Now E-Accounting or Online Accounting is new development in field of accounting which can save the cost associated in accounting, it minimizes the paper work, Thus, source documents and accounting records exist in digital form instead of on paper in an electronic accounting system. with the help of various management applications like ERP,CRM ,project management e-accounting can be done. In E-Accounting the accountant and employer both feel satisfaction because , this is cheap and without software defaults or failure . Your accounts saves in online server or database , so there is no need to record manually, it does not require any software installation. A survey will be conducted among accounting agencies in order to provide evidence for the hypotheses. E-accounting problems & prospects research paper able to find out some of the basic problems, and prospects in e-accounting in the field of accounting and the research is exploratory in nature. This paper is based on a limited initial review of the literature and provides a brief summary of the theoretical part of the study. It should be regarded as a research proposal of an ongoing research project and as such it may develop and change in the process.

keywords: E-Accounting,Accounts payable, Book-keeping, accouts receiveables.

Introduction

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 /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. The terms E-Accounting and financial information system are used to refer to any accounting system that depends on Information and Communication Technology (ICT) for performing its information system functions. An E-accounting system could be thought of as an inter-organisational 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 reports regarding the company.

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 Uses Accounts payable- is a file or account sub-ledger that records amounts that a person or company owes to suppliers, but has not paid yet (a form of debt), sometimes referred as trade payables. When an invoice is received, it is added to the file, and then removed when it is paid. Thus, the A/P is a form of credit that suppliers offer to their customers by allowing them to pay for a product or service after it has already been received. Accounts receivable- also known as Debtors, is money owed to a business by its clients (customers) and shown on its Balance Sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. Bookkeeping- On a company’s balance sheet, accounts receivable is the money owed to that company by entities outside of the company. The receivables owed by the company’s customers are called trade receivables. Account receivables are classified as current assets assuming that they are due within one year. To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account. When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is usually a debit. Business organizations which have become too large to perform such tasks by hand (or small ones that could but prefer not to do them by hand) will generally use accounting software on a computer to perform this task. Online Bookkeeping Process Understanding The Need V Pilot Project V Client Satisfaction V Agreements V Necessary Training V Actual Outsourcing V Implementation V Quality Check V Final Output

PRONTO-Xi Financials is a complete financial management software tool that allows you to automate many of your financial processes, establish greater security around those processes, manage cash flow better and gain enhanced insights into your operations. The functionality can be scaled up or down to suit your individual business needs making it suitable for businesses of any size. Integrate your financial management tasks to drive efficiency throughout your operations Focus on the data output rather than collecting the data in the first place Make better business decisions with accurate data captured and delivered to you in a timely fashion via robust business processes Complete set of financial tools including General Ledger, Accounts Payable, Accounts Receivable, Fixed Assets and Payroll

key functionality & benefits

Period End close – produce accurate quarterly and annual financial statements for individual business units or your entire business that comply with regulatory, organisational and stakeholder requirements. Corporate Risk and Governance Compliance – develop structures and business processes to comply with organisational and recognised compliance standards. Integrate your financial supply chain – strengthen every aspect of your financial supply chain with integrated, robust processes, including establishing electronic purchase request and authorisation limits. Streamline payments and invoices – improve your Accounts Payable and Accounts Receivable management and drive payment efficiencies. Multi-company consolidations – consolidate any number of companies quickly and easily. Cash flow management – track, identify and manage your cash flow, liquidity and your exposed financial risk quickly and easily via integrated, automated processes. Monitor financial performance – report on key financial metrics and develop an accurate understanding of your true financial position at any point in time.

Company’s all accounting project can easily outsourced by E-Accounting system:

A.P.O. A.P.O means accounting process outsourced APO is the new and developed form of BPO according to research report APO is growing very fast. This industry has jumped 60% annual growing rate. This industry has reached up to 60 cr. Of Rs.

Pay pal Payment system is popularizing in Online Accounting Some of Indian professional accountant gives the accounting services to USA customers under A.P.O. Now they can easily get their service amount from paypal way . Paypal gives you the facility of withdrawing your service fee with following ways:

a) If you want to deposit your service amount in your bank account in India for more than RS. 7000 you can easily transfer without any cost of transferring , if upto RS. 6999.99 you want to transfer in your account you will charge Rs. 50 b) You can get the cheque by giving request in the website under your paypal account c) You can also withdraw funds to your card also.

Willis and ACE Achieve e-Accounting First in London Insurance Market The London-based operations of ACE, a leading insurance company, and Willis Limited, the UK insurance broker, announced the successful launch of a full electronic accounting process between the two companies -a London Market Group (LMG) Non Bureau project first. E-Accounting is a data-based process for facilitating financial agreement and subsequent settlement of premiums and claims with insurance carriers, and replaces paper in the accounting and settlement process. E-Accounting substantially improves the quality, integrity and certainty of process, allowing Willis and carriers to synchronise their operations and improve client service. Implementation benefits include: prompt advice of premium and claims due, enabling simpler reconciliation improved settlement cycle resulting in speedier premium and claim settlement the secure exchange of critical closing and settlement information reduction in queries and early query resolution Graham Card, Executive Director and Business Lead for Willis’ e-Accounting roll-out, said: -London Market modernisation has long advocated the elimination of paper from the process and the introduction of electronic accounting. This is a major reform that will show benefits for both parties in the future.- -ACE are continually looking at ways to improve service to clients, making payment of premium easier and payment of claims faster. e-Accounting and closer collaboration with our clients will enable ACE to achieve this. -This project with Willis has been a great success with a real sense of partnership, and ACE is looking forward to working with Willis to expand the use of e-Accounting capabilities further with our clients and the wider market through the LMG sponsored Non Bureau project.- Willis and XL Implement e-Accounting London, UK, September 26, 2011 -The London-based operations of XL Group plc, a leading global insurer, and Willis Limited, the principal UK broking company of global insurance broker Willis Group Holdings plc (NYSE:WSH), announced the successful launch of a full electronic accounting process between the two companies. Through better synchronisation between brokers and carriers, the online system markedly improves client service by enhancing the quality, transparency and integrity of the accounting and settlement process. Willis Group Holdings plc (NYSE:WSH), announced the successful launch of a full electronic accounting process between the two companies. Through better synchronisation between brokers and carriers, the online system markedly improves client service by enhancing the quality, transparency and integrity of the accounting and settlement process.

However, with the introduction of PC-based Accounting Systems, both the computer hardware and the accounting software have become cheaper, creating an opportunity for organisation to adopt e-accounting. Nevertheless, there are several factors that determine whether an organization adopts e-accounting or not. Studying the factors that influence computer adoption, internet adoption and accounting software adoption

Relationships between company size and Internet Adoption

Company size Internet (No of employees) connected 50-99 41 % 10-49 30 % 1-9 16 % Objective

The objective of this research is first to describe the present state of the art of e-accounting in organisation bookkeeping agencies in U.P region(mainly lucknow) as well as identify managers’ intentions towards adoption of e-accounting ;what are the problems they are facing with the adoption of E-Accounting and the future prospects of E-Accounting system second to empirically study factors that influence the adoption of e-accounting, and third to study the problems that e-accounting may have in general and more specifically on the accounting procedures and practice in small and organisations bookkeeping agencies that have adopted an e-accounting system.

Research Methodology

The data for this research was collected by means of a questionnaire. Questions are both open ended and closed ended. The study was, for practical reasons, the research is done in the UP region (mainly lucknow) . Besides, demographic data including gender, age, position in organization, accounting background, professional qualification, experience in current system, level of understanding and knowledge related to the system, were measured by different scales. Finally a data of total of 90 persons were collected generating a positive response rate of approximately 35%. I have identified 12 questions that most effectively measure the no. of persons acquiring e-accounting in their organisation:

Q1. What kind of firm do you have?

Q2. How many no. of accounting staff do you have?

Q3. Does your firm use computers in operations?

Q4. Does your firm make use of accounting software in operations?

Q5. What kind of accounting software’s are used?

Q6. What are the aim of implementing E-Accounting?

Q7. What problems are faced by the firm while implementing E-Accounting?

Q8. What ways do you suggest for improving the system for easily access to E-Accounting?

On the basis of the data collected from both medium & small firms we found that only 35% of the firm out of hundred is successful in implementing E-Accounting. The firms like ACE & Willis a leading insurance company, and Willis Limited, the UK insurance broker, announced the successful launch of a full electronic accounting process and for the positive respondents the goal of implementing e-accounting are timely information management, large storage capacity, reduction of clerical work, cost effectiveness. Whereas for the left percentage 38.8% face problems like lack of constant supply of electricity, frequent breakdown of the system, inability to import/export data, inability of the system to support large volume of data or all of the former problems in implementing E-Accounting.

Findings and Suggestions

To further investigate the actual benefits of e-accounting, empirical studies of some ten small and medium-sized accounting agencies will be undertaken. These companies will be selected among the adopters group and chosen with the help of reference lists from software application providers and from information gathered in previous studies. The main data collection method will be face-to-face, structured interviews with managers of these organisations or, when necessary, telephone interviews. All interviews are planned to be tape recorded. The firms are facing problems in — Data security – All your data resides on a remote server: however, a back up can be taken regularly. Speed – Most of the currently available online office suites require a high broadband Internet connection. Lack some features available on the offline office suites: but this is progressively becoming available (MS LIVE, Google online-Suite, Think free, Zoho Office, Internet Office .Biz and e-Desk Online) A network connection (usually Internet access) is required to send and receive changes. That is, internet dependence makes it more difficult to work offline and also most of the firms don’t want to invest in purchasing accounting software. The results also indicate that interpersonal communication channels, such as training sessions and consulting, are considered as the most useful ways to achieve knowledge of new e-accounting innovations. Internet is also considered as a useful means of providing information. The use of accounting software makes the task easier and also saves the valuable time.

Conclusion

The study provides strong evidence that the use of E-Accounting has contributed to the effectiveness of tasks as expected. The study shows that the use of E-Accounting may improve the effectiveness of accounting and reporting tasks, budgeting, controlling and auditing which may reflect on the organizational effectiveness as well. An improved quality in the system may provide better support for the tasks 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.Future studies could place more focus on the inter-organizational factors affecting the adoption rate. Moreover, future research could focus on the attitudes and resources of the business partners of accounting agencies. The contribution of this study will be twofold. First, the contribution of this study lies in the empirical analysis of the determinants of e-accounting adoption. The results of the study may give some evidence on the managers’ intentions of small and medium-sized accounting agencies towards e-accounting and thus predict future use of e-accounting systems. Second, this study aims at providing some understandings of the actual benefits of the use of e-accounting systems.

References

OECD, 1998. SMEs and Electronic Commerce. Working Party on SMEs to the OECD Ministerial Conference on Electronic Commerce. October 1998, Ottawa. (October 7, 1999).

Amidu, M. and Abor, J. (2005), Accounting Information and Management of SMEs in Ghana, The African Journal of Finance and Management, 14(1), pp. 15 – 23.

Doost, R. K, (1999), Computers and Accounting: Where Do We go from Here? Managerial Auditing Journal, 14(9), pp. 487 – 488.

Accounting Act (AA, Kirjanpitolaki ) 1336/30.12.1997

Hall, J. (2007). Accounting information systems. Quebec, Canada: Thomson Higher Education.

www.acegroup.com/uk

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Are You Dazzled By Cash Back Credit Card Offers How To Choose A Card And Come Out Ahead

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Nothing makes a credit card more enticing than the promise of receiving cash back with every purchase. Such an arrangement makes perfect sense in the minds of people whore going to use their credit cards with or without incentives. But grabbing at the first cash back credit card offer that comes your way could create problems for your finances. Points and privileges still have their place, but card issuers recognize the power of luring consumers with cold, hard cash.

Theres no question that the credit card industry is still immensely profitable. Issuers manage to draw sensible consumers in with promises of free money and juicy bonuses. But responsible consumers need to consider why card issuers would make these offers to begin with. Although it might be gratifying to think that they want the best for us, the reality is that we cant count on them being so kind.

Cash back cards may not be all you expected if you dont choose the right card. Pay attention to the following points to come out ahead of the credit card company.

Dont Make It A Game

Your ploy to open several new cards just to cash in on the signup bonuses then cancel them after you receive the cash will backfire. Opening and closing credit cards at random will hurt your credit score. Remember that your credit utilization ratio is factored into your final score so any increase in that percentage will cause your score to drop. Apart from that, youll forfeit your rebates on the cards if you dont meet certain limits. And if you overspend just to qualify for the rebates, youll hurt your finances more than anything else.

Do The Math

Dont get sucked in by attractive 2-6 percent cash back offers. The average cash back rebate is 1 percent, so be wary of unusually high offers. If you fail to read the conditions of those high percentage rebates, youll realize too late that theyre restrictive or almost impossible to obtain.

For instance, some cards promise 5 percent returns on groceries. But if you do most of your grocery shopping at a membership warehouse, you wont qualify for the rebate card issuers typically exclude some types of stores from their programs.

Revolving categories also make it harder for card holders to keep track and get the benefits of high percentage deals. Whats worse, is that you have to sign up to be included in the higher rebate categories. So if you go shopping without explicit confirmation from the credit card company, the rewards will never materialize.

In other cases, you have to agree to high annual fees in order to qualify for the inflated rebates. According to reports, over 65% percent of card holders never cash in on their rebates. The cloudy terms and constant roadblocks by card issuers are both reasons some consumers give up in frustration.

Read The Fine Print

Every card has its own set of rules as it relates to redemptions, expirations and forfeitures. For example, a late payment could lead to the loss of months of accumulated cash back rebates. Imposed pay increments are another way that card issuers hold back some of your money. So if your account has an irregular amount as often happens- it will sit in the account until you reach the required minimum.

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Acing Any Credit Cards Instant Decision Process

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Today, when you apply for credit cards, instant decision algorithms tell you very quickly whether youve been accepted or not. The banks have tightened their credit card approvals process considerably since the financial crisis, though. The fact that instant decision systems exist, though, shouldnt lead you to think that passing a credit card verification process is simple.
Whether you choose to submit your application online or in person, the fact that youve applied appears on your credit report. You dont want to apply unless you feel that you have a good chance of being accepted.

Your first step in applying for a credit card should be to get a soft pre-verification check done. Many banks and other personal finance websites provide the service. A soft check doesnt pull your credit report it merely evaluates your chances of passing a proper credit card verification check with whatever information you are able to fill in.

If your pre-verification check seems less than certain about your chances, you need to do everything you can to improve your chances. Only then should you apply in earnest.

What Can You Do To Improve Your Chances?

The health of your credit file is an important part of how easily you pass an instant decision for a credit card. Before you fill out an application, it would be a good idea to check out your credit yourself and to build it up as well as you can. If you have missed payments recently, you should make sure that you pay regularly for a few months before you attempt to apply for a credit card.

Once You Have Worked On Your Credit Rating

To even begin to qualify for a credit card, you need to be a UK resident and at least 18 years of age (many banks require that applicants be 25 years of age). Depending on what kind of credit card you are applying for, a regular income and some financial history may also be required.

A part of your success passing a card application decision comes down to doing a good job providing accurate information on the form. Since the banks always ask for multiple documents to back up the information that you provide, any mistake that you make will be caught out. Keep documents on hand for the following.

Identification that shows your name, title and contact information

You will need details of your job on hand what your job title is, whether you are employed full-time or part-time, the name of your employer and the relevant contact information. The longer you have served with the same employer, the better your chances getting a good credit card someone with a steady job is considered a good bet.

Youll need to provide some financial information. You need proof of what your exact salary is and where your bank account is. You should have the name of the name of the bank that youve operated regularly for the longest time. A long banking record works in your favor.

You could need to provide details of any loans that you have to your name. You need to be careful not to omit any known loan. The credit card provider could easily verify the information that you provide.

Make Sure That You Apply For The Right Kind Of Credit Card

Many credit card applications end in rejection simply for the reason that applicants applying for cards aim far higher than they could ever qualify for. If you have an average income, for instance, it makes no sense applying for a high-end prestige card.

Sometimes, its the banks that choose a credit card for you. If you have good credit, a bank may approach you with an offer of a preapproved credit card. Even if you have a bank choosing a credit card for you, you still do need to check it out yourself to see if its the right card for your needs. Does it offer you a reasonable APR? Is the grace period a fair one? Are the rewards and balance transfer rules the right kind for your needs?

With todays credit cards, instant decision approvals make a process that used to be tedious and time-consuming easy and efficient. Its up to the consumer to use these offers responsibly.

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American Express Blue Credit Card – Review

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The American Express Blue Credit Card is a cut above many of the other varieties of credit cards out on the market today. Absolutely loaded with advance features, it truly is a card for the tech savvy consumer. It truly is like no other credit card you will find in your wallet, and for many carrying the American Express Blue Credit Card allows them a certain piece of mind that they can’t find in any other card offering any low competitive interest rate. The American Express credit card comes with a low APR rate and no annual fee, but that is just the tip of the iceberg when it comes to reasons one should carry the American Express Blue Credit Card.

It has never been so simple and easy to manage your American Express Blue Credit Card account online. It is simple to view up-to-date billing information including payments made online and transaction charges 24/7. You can also receive automatic e-mail account alerts with your American Express Blue Credit Card. These alerts are offered to help you keep track of your account activity. The automatic e-mail updates help you avoid late payments, keep tabs of your credit line, and more.

Your Year-End Summary is also available online. The Year-End Summary of charges provides one with 24-hour access to an entire year’s worth of account information on your American Express Blue Credit Card. The useful and flexible features make organizing your personal expenses a breeze. You can even download a summary to print out. The Year-End Summary is an outstanding tool for getting your taxes ready and planning one’s budget.

The dedicated folks at American Express Blue Card customer service are there to handle your needs. Around the clock, 24/7 they are there for you. Simply call the number on the back of your American Express Blue Credit Card should you require assistance.

Around the clock, 24/7, American Express Customer Service is there to handle your needs with the kind of service that keeps cardmembers happy and loyal for years to come. For fast and speedy service, you can call the phone number on the back of your American Express Blue Credit Card.

The American Express Blue Credit Card also features a fee-free rewards program.You can easily earn points toward fantastic rewards from the places you like to buy from. Earning one point for virtually every dollar you charge with the American Express Blue Credit Card is easy. It is always easy to enroll in the membership rewards program for cardholders at the sign up page on the American Express website.

ExpressPay is also an exciting payment service you can access with your American Express Blue Credit Card account. ExpressPay makes it super easy to pay for all those everyday quick charges with a simple swipe. This feature of the American Express Blue Credit Card allows you make purchases without having to swipe your card. If in a dash to get somewhere all you have to do is hold up your American Express Blue Credit Card to the reader terminal next to the checkout. This allows you added safety as it exposes your details to far fewer strangers than that of many of the other credit cards. This process is already set up at thousands of locations nationwide. You can visit www.americanexpress.com/expresspay for more information.

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How a Credit Card Debt Relief Program Works

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The first step toward taking control of your financial situation is to complete a realistic assessment of how much money you make and how much money you spend. Prioritize them and make sure you can pay the basics: housing, food and consumables, health care, insurance, travel and education. Write down all your expenses to track your spending patterns and separate the necessary expenses. Find out what interest rates (APR) you pay on each credit card. And be prepared you might be astonished. You may want to consider using a debt management group in order to consolidate your debt.

We encourage you to do some homework before making a decision on which company to use. Begin with checking out a few companies with the Better Business Bureau online. This will help you determine their past history. Find out what services the competitors provide, what success rate they have and what it will cost you. Credit card debt relief programs generally work with unsecured debts that are not tied to an asset like your home or auto.

A debt settlement program can provide credit card debt help through professional negotiations with your creditors. The outcome can be a debt reduction of 40 60% off what you owe. The program length is generally 12 36 months depending on the amount of monthly payments that fit your budget. There is a 48 month program available but not advised because creditors may not want to wait that long to receive total payment. They can also help you if youre in a bad credit debt consolidation. Credit card debt reduction programs also charge fees but they are negotiable with most companies. A debt settlement program does not show up on your credit report. But it will have an adverse affect on your credit score. How adverse of an affect depends on your present credit score.

A debt consolidation and management program may also be a viable option for consolidation debt help. They are generally non-profit organizations but they also charge fees. They can consolidate your debt into a single monthly payment. Their monthly payments are generally higher than those in a credit card debt relief program. Debt consolidation and management programs do report to the credit bureau as managing your credit situation for debts entered into the program. This will have an adverse affect on your credit score since credit is based on your ability to pay your own debts on time. Consolidation debt help plans also offer loans in order to consolidate your debt. They also work with bad credit debt consolidation.

You may require some essential investigation and basic steps on how to eliminate credit card debt. After you make your decision try to stick with it. Debt consolidation and management program can be just as effective as a debt settlement program. You will need to weigh the comparisons between the two popular plans. There are pros and cons with both to consider.

If you have any questions feel free to contact us about our credit card debt relief programs. One of our experienced and professional debt specialists would be glad to explain your options with no obligation. Our website is: www.creditresultsusa.com. Our staff will be available to assist you immediately.

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