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E-commerce and accounting

E-commerce and accounting

E-commerce and accounting, can be defined as the use of electronic telecommunication technology to conduct business transaction (sale of product to payment of dues) through the Internet. it allows goods to be exchanged any time and to any place where the net is accessible, E-commerce makes the business world global and dynamic.

Due to e-commerce transactions, data is entered in the accounting records in the normal way and accountants normally process them as they do with the other transactions of the business. But they need to explain to the auditor to what extent the data is accurate and where they come from. At the same time, accountants can provide reliable information to the decision makers relating to the activities of e-commerce. if transactions are so happening electronically, the paper works will certainly be reduced at minimum, The workload of an accountant will be reduced dramatically with the emergency of E-commerce and accounting.

Concept Check:

E-commerce and accounting

I. “e-commerce reduces the importance of accounting.”

II. Why is financial accounting known as ‘Stewardship accounting?’

III. How can an accountant communicate financial information with diversified users of information?

IV. Why are the shareholders treated as the external user though they are considered as the owner of the company?

V. Are stakeholders and stockholders same?

E-commerce and accounting

 

 

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