Importance of Electronic Accounting System for Business

Accounting Research

Abstract
The electronic accounting system assists the company to secure the data reliably and keep tracking the
financial transaction of the company as well. Advancement of the technology has made the accounting
systems more clear and transparent. Use of electronic accounting system has reduced the errors and
mistakes that were seen in the manual processes. Recording of accounting transactions had become
more faster enabling the company to effectively evaluate the data and deciding about accuracy and
reliability of recorded transactions. Advanced software provides increased security to the accounting
data as no person without the proper authority could access the accounting information. In the same
way, the current study will determine the importance of using this advanced tool and system within a
firm to meet the defined aim. It will provide how electronic accounting systems have helped the
organisation in making the process more faster and secured. The literature review clearly describes the
importance of the accounting system within a firm. It analyzes how this system will help the company
save time and present the report without any error. It provides about the different methods that are
used by the firms under electronic accounting system for recording transactions. It will also provide
about the role of accounting systems to help in achieving goals and objectives. There are challenges
faced by firms in using the electronic accounting systems in their organisation and are discussed in the
report. Further, the study also shows that the company faces a different problem in order to implement
a new system within a firm, which, in turn, affects overall results, such as the theft of data, loss of
confidentiality, weak reporting service, and lack of management and security. Using qualitative study
methods, the researcher can meet the defined aim and analyze the importance of using the e-
accounting system within the financial sector.

TABLE OF CONTENTS
Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Theme 1: Electronic accounting system......................................................................................5
Theme 2: Different type of electronic accounting system...........................................................5
Theme 3: Importance of e-accounting system for business.........................................................6
Theme 4: Problem faced by the company to develop an electronic accounting system..............6
Theme 5: Ways to sort out the problem.......................................................................................7
RESEARCH QUESTIONS.............................................................................................................7
RESEARCH METHODOLOGY.....................................................................................................7
DATA ANALYSIS..........................................................................................................................9
How do electronic systems help in decision making?.................................................................9
DISCUSSION................................................................................................................................11
CONCLUSION .............................................................................................................................12
Recommendations......................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
In the era of digital technology, most of the company uses advanced technology to meet the
defined aim. In the same way, the current study also helps to determine the importance of using the
advanced tool. The entire study will shed light on the electronic accounting system, which offers a safe
means of storing and assessing the data to run a business in a better manner. Therefore, accounting is
the term that determines the financial performance of the company and analyzes how the company
manages the data in order to meet the defined aim. Nowadays, most of the company uses an advanced
accounting system such as BIS, which saves time and perfection in work, which is not possible in the old
system (manually).
That is why, through this current report, the researcher wants to create awareness of using an
electronic accounting system that assists in monitoring the financial performance and transaction. Most
of the company uses advanced techniques and accounting software to calculate all necessary
calculations and keep the full details of clients as well. However, at the same time, the company also
faces many problems, such as losing confidentiality and many more. So, through the present study, the
researcher uses a secondary data collection method to examine the importance of using an electronic
accounting system to generate the best results in the literature review section. Also, through this topic,
the researcher creates awareness among large businesses so that they will start implementing the
system, which, in turn, assists in taking business at a further level of success.
Purpose: The purpose of this research study is to understand the importance of using the
Electronic Accounting system.
Aim: This research report states, "To investigate the importance of using electronic accounting systems
within a financial sector."
Research Objectives:
 To determine the concept of the electronic accounting system.
 To analyze the importance of using the e-accounting system within a firm.
 To identify the problems face by the company while implementing the e-accounting system.
 To recommend the ways through which the company overcome the challenges.
Research questions:
 What is the electronic accounting system?
 What is the importance of using e- accounting system?
 What are the challenges which the company faces while implementing the electronic accounting
system?
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