The Internet influences numerous aspects of our lives, and accounting is one professional sector that has taken advantage of web-based technologies in a big way.

In the 1990s, accounting firms became fascinated with the Internet. This phenomenon transformed the accounting profession, drastically changing the ways accountants handled bookkeeping processes, dealt with regulators, and attracted new clients.

The Benefits of Internet-Based Accounting

Internet-based accounting offers the following advantages:

The System:

Internet-based accounting involves less hassle. It is easier than ever to deploy and use web-based accounting solutions.
The Internet streamlines the accounting process, making it faster and more efficient.
Various technologies enable firms to store and retrieve documents electronically.

The Process:

Internet-based accounting allows firm employees to perform a variety of tasks from any computer terminal with an Internet connection. They can update financial records, finalize expense reports, and enter data.
Firms can deliver electronic financial statements and reports instantly.
Firms can easily obtain information from their clients through file transfers.
Internet-based technologies eliminate geographic barriers. Firms can access current statements relevant to their clients’ financial positions.
Firms can create access policies to protect sensitive data. For example, they can give some parties “read-only” access and allow others to make entries.

Enhancements:

The Internet allows accountants to quickly search for crucial information and resources.
Internet-based technologies make it easier for firms to complete electronic monetary transactions.
Firms can implement measures to prevent data loss.
Internet-based accounting solutions allow firms to apply enhancements and patches to their products more frequently.

Administrative Benefits:

The Internet frees accounting firms from having to hire employees locally.
Many accounting firms have become largely paperless, saving themselves millions of dollars annually.
Internet-based technologies allow firm employees and freelancers to work from home.

Interactions:

Online meetings allow firms to communicate with their clients and staff members from any location at any time.
With programs offered by websites such as LogMeIn.com and PCanywhere.com, accounting firms can access clients’ computers remotely.

Business Expansion:

Firms can grow their business and go global by using virtual meeting spaces.
Virtual whiteboards make marketing easier by allowing for effective presentations and demonstrations. Well-designed websites attract new clients from distant locations.

Although Internet-based accounting has many benefits, firms need to consider its drawbacks before they embrace it. Problems with Internet access, computer viruses, and potential breaches of data security are some of the negative factors that accounting firms need to take into account.

On the net:The Internet: Revolutionizing How CPAs Do Business
www.nysscpa.org/cpajournal/2007/507/perspectives/p12.htm

An Overview of Web-Based Bookkeeping Solutions
www.allbusiness.com/accounting-reporting/methods-standards-accrual-accounting/436-2.html

Web-Based Accounting
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