Accounting for Internet Businesses (Dot Coms)

Running Head : ACCOUNTING FOR INTERNET BUSINESSES (DOT COMS

Accounting for Internet Businesses (Dot Coms

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Introduction

Accounting has taken a new paradigm shift and joined the world of internet business . Due to changing needs of customers and competition in consumer quality goods internet businesses are in dire need to keep detailed and up to date accounting records . The marrying of internet businesses and accounting is a positive milestone in the development of e commerce since similar strategies are employed . This is written

to critically analyze accounting for internet business

According to Ellsworth Matthew , internet businesses have similar needs to those of normal businesses (1995 . For instance , just like other businesses internet business need to have proper record keeping ensuring timely financial analysis . In other words , the results derived from these analyses help the business improve from its shortcomings and if possible find lasting solutions to its problems . This way internet business is in undertaking business using the right flat form for instance using transparency . Internet businesses are also in dire need of proper business practices for instance promotion and development of long term business relationships . The success of any business is dictated by the availability of a loyal market to ensure a future for the business . On the other hand , internet businesses need to employ the use of proper advertising which promotes confidence and faith from target market (www .saveonsupport , Accessed 06 /10 /07 . Marketing can be seen as a core ingredient which sells the business to the customers . In other words if the business is not known by its target market then its products will not be sold and this means that there is no returns Internet businesses just like other businesses also needs to a timely schedule to ensure the provision of goods and services at a fair market (Ellsworth Matthew , 1995 . The tool of fair prices is an important tool to ensure that internet business serves a satisfied market . All the above processes comprise of a summary of accounting process

There are many reasons which have favored the integration of accounting to the internet business . For instance , internet businesses also require the need for diverse skills . With the changing needs of consumers and the consumer market , it is apparent that the provision of goods is a minor part of the business needs (www .capterra .com , Accessed 06 /10 /07 For instance it is just not sufficient to provide the consumer with the goods and services he needs owing to the competition posed by the internet market . This then calls for internet business personnel to have competency in internet technology for instance programming , web sever technology , international accounting standards , multilingual translations , legal issues and electronic marketing strategies (Ross 1999 . Access of the above skills and competencies gives any internet business a competitive edge against its major competitors . On the other hand , this is the only way internet business can compete against the other markets since the consumer 's demands and needs have...