A Framework for Digital Accounting

A Framework for Digital Accounting

Ashutosh Deshmukh (Penn State University - Erie, USA)
DOI: 10.4018/978-1-59140-738-6.ch001


The term digital refers to digits or numbers; however, in the computer science lexicon this term refers to the representation of information in 0s and 1s, which can be read, written and stored using machines. The prefix “e” refers to electronic, meaning use of electricity in powering machines such as computers. Digital accounting, or e-accounting, as a corresponding analog, refers to the representation of accounting information in the digital format, which then can be electronically manipulated and transmitted. Digital accounting does not have a standard definition but merely refers to the changes in accounting due to computing and networking technologies. Accounting, the art and science of measuring business performance, has evolved with business, more so with information technology. Punch cards and mainframes, databases and data warehouses, personal computers and productivity software, specialized accounting software and Enterprise Resource Planning (ERP) systems, Local Area Networks (LANs) and Wide Area Networks (WANs), among other things, have left their mark on accounting theory and practice. For example, data-entry mechanisms, data storage and processing mechanisms, end reports, internal controls, audit trails and skill sets for accountants have been in continual flux for the past several decades.

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