Benefits of E-Commerce
Technology opened the door to many new and exciting innovations in the accounting and finance worlds. As brick-and-mortar businesses have experienced some decline, online retail businesses have increased exponentially. Many businesses engage in e-commerce, using the Internet to conduct business-related transactions to sell products and services to customers all over the world. The advent of the Internet of Things, which refers to computers and machines communicating directly with one another using the Internet, has made possible the transfer of financial and other data in real time, or as they occur.By conducting business online, companies are able to sync financial transactions, such as their sales information, directly with their accounting software via the Internet. Also, these companies are better able to receive updated accounting information in real time. For example, if Company ABC's customers are purchasing products directly through its website, at any given time the company is able to determine information such as the number of products sold, the number of products in inventory, the amount of revenue generated from those products, and the overall profit. For financial reporting and management purposes, this allows an organization to have accurate financial information to make timely and informed decisions.