An accounting journal is a book where transactions of any kind are first recorded when they take place before being recorded in the different respective documents. With advancement in technology and the emergence of web-based businesses the concept of online journal diary has emerged. The merits of online journals are as outlined below.
The web-based journals use automated sequences of instructions in such a way that any activity in the website of the online business automatically gets recorded. When a person logs into the website, a record is made, when someone tampers with information or data on the site a record is also made. This works to prevent errors of original entry and to prevent fraudulent activities.
Another advantage is that the online journals come with an automatic billing capability when charges from customers are due. They will create invoices and send to them. This reduces your workload of going through all the records of customers and debtors and manually creating and sending billings which is very cumbersome work
Group emailing can be enabled for automatic emails. All you need is to create emailing groups of clients and you memorize the reports to be send, they will be send on the schedule you have set. In offline journals, you have to create these schedules and send them manually which is prone to delays caused by human errors or emergencies which are unavoidable.
The location of the customers may be important to some businesses. With web-based journals, it is possible to locate your customers as when they log in, the system records where they are logging in from. This may come in handy for such things as marketing campaigns as you know where most of your clients are located. With manual journals, this may be hard to keep up with.
With most offline journals you are only able to record one accounts receivable entry and accounts payable entry. This is not the case with journals based online because they will allow for multiple accounts payable and receivable lines. When consolidating accounts payable at the end of a reporting period it is very easy to do that on multiple lines. This is the same for accounts receivable.
The system automatically updates the bank accounts and the records of the online business. This reduces the chances of making errors and can only be erroneous if the system has some technical errors. If transactions are tampered with by hackers, all the records had been duly updated and thus the loss of important information is minimised.
The merits outlined above show the importance of the web-based journal entries to the operations of businesses especially online businesses. They may also help to reduce the costs of running the business in general. Necessary precautions should be taken to prevent exposure of important information to unscrupulous people who may use hackers.
The web-based journals use automated sequences of instructions in such a way that any activity in the website of the online business automatically gets recorded. When a person logs into the website, a record is made, when someone tampers with information or data on the site a record is also made. This works to prevent errors of original entry and to prevent fraudulent activities.
Another advantage is that the online journals come with an automatic billing capability when charges from customers are due. They will create invoices and send to them. This reduces your workload of going through all the records of customers and debtors and manually creating and sending billings which is very cumbersome work
Group emailing can be enabled for automatic emails. All you need is to create emailing groups of clients and you memorize the reports to be send, they will be send on the schedule you have set. In offline journals, you have to create these schedules and send them manually which is prone to delays caused by human errors or emergencies which are unavoidable.
The location of the customers may be important to some businesses. With web-based journals, it is possible to locate your customers as when they log in, the system records where they are logging in from. This may come in handy for such things as marketing campaigns as you know where most of your clients are located. With manual journals, this may be hard to keep up with.
With most offline journals you are only able to record one accounts receivable entry and accounts payable entry. This is not the case with journals based online because they will allow for multiple accounts payable and receivable lines. When consolidating accounts payable at the end of a reporting period it is very easy to do that on multiple lines. This is the same for accounts receivable.
The system automatically updates the bank accounts and the records of the online business. This reduces the chances of making errors and can only be erroneous if the system has some technical errors. If transactions are tampered with by hackers, all the records had been duly updated and thus the loss of important information is minimised.
The merits outlined above show the importance of the web-based journal entries to the operations of businesses especially online businesses. They may also help to reduce the costs of running the business in general. Necessary precautions should be taken to prevent exposure of important information to unscrupulous people who may use hackers.
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