INTRODUCTION

There has been a constant growth in the use of information and communication technology in business to support the exchange of data and information within and between organizations. New technologies, like the Internet and mobile solutions, have provided new business opportunities and operations. The e-business is drastically affecting traditional businesses that cannot continue to work the traditional economic model digitally or via computer network, uses distributed information technology, knowledge management, and trust mechanisms to transform key business processes and relationships with customers, suppliers, employees, business partners, regulatory parties, and communities. It is a new way of doing business that involves connectivity, transparency, sharing, and integration. According to IFAC E-business is believed to have a significant impact also on accounting systems, through changing business processes and the evidence available to support business transactions, and leading to changes in the accounting records maintained and the accounting procedures followed. The accounting profession must be able to deliver good, reliable and timely measurements of both the results of operations and the health of the companies involved in affiliations to interested stakeholders in both summary and detailed data as desired by the information users. XBRL will be a useful vessel to deliver and retrieve this information. The accounting profession, being the distributor of bitable good information, is rapidly transforming into an ebusiness. As information production is increasingly electronized, members of the accounting profession will increasingly have to identify and convince the markets of the value their services add to the electronic production of information in order to minimize the effects of commoditization of

information production and dissemination. E-business approach encouraged all firms to use information technologies and the internet in all functions. Accordingly, usage of information technologies and internet in nearly all units like marketing, manufacturing, inventory tracking, management and audit was initiated. In addition to these units, accounting unit was also affected from these developments. Many accounting applications were begun to be performed with information technologies. Consequently, these developments gave rise to a new concept called "e-accounting".

Characteristics
A real online accounting or bookkeeping service can be recognized by the following characteristics which all make for a much more efficient accounting process: Multi-user access Multi-site access A single / multiple, shared database(s) Zero system administration for end-users Very economical to provide service to large number of clients Enhancements and fixes continuously developed and installed by service provider

Uses
Accounts Payable Accounts Receivable Payroll Job Costing Financial Write-up and Reporting Bank and account reconciliations Quarterly Tax Reporting Compliance Reporting Tax Return Preparation Internal financial consultant Establish the control system Inform those concerned of financial condition Supply the business with adequate information

 Maintain contact with government agencies, bankers, etc. Provide insight, courses of action Facilitate future planning and growth

Maximum Resource Utilization.

The accounting function receives attention only when a critical need arises. No time wastage. Up to date information which is available in realtime. No need of Hiring/Training accounting and payroll staffs. No Payroll related costs, FICA, workers compensation, unemployment, vacation/sick benefits, health insurance benefits, and many other expenses. No need to upgrade software and annual updates from client side. Check and monitor office supplies (check stock, paper stock, envelopes, toner) No additional bank charges Cost saving on office space (rent for additional offices)

Benefits
Save time and money; Gain greater control of finances by moving from paper records to computerized accounting software; Transactions that affect your bank account can be sent automatically to the online accounting application; Send sales invoices and other documents directly to another business's accounts for the recipient to approve without having to reenter the information; User friendly GUI interfaces. Online office suites are offered by websites in the form of software as a service. They can be accessed online from any Internet-enabled device running any operating system. This allows people to work together worldwide and at any time, thereby leading to international web-based collaboration and virtual teamwork. Usually, the basic versions are offered for free and for more advanced versions one is required to pay a nominal subscription fee.

Essential Features The ability to use the common software-based office tools online.

Advantages
The cost is low ( in some cases : free ) No software is required to be downloaded and installed. No upgrading hassles when new features are added or bugs eliminated. They can run out of thin clients with minimal hardware requirements. They also provide the ability to share a document with several users without your own server. No need to purchase or upgrade a software license. Instead these are available as software as a service. They are portable. You can access your documents from almost any computer with a broadband connection. If your computer crashes, your documents are still safe on the server. E Accounting

E- Accounting
The new information and communication technologies represent a vector of development and an important component of the formal information system is represented by computerized information. Many traditional accounting tasks dealing with recording and processing of accounting transactions can be reliably automated. Thus, accountants add little incremental value to organizations in this regard anymore. Rather, an accountant's worth is now reflected in higher-order critical-thinking skills, such as designing business processes, developing e-business models, providing independent assurance, and integrating strategic knowledge. E-Accounting is new development in field of accounting. It means all your transactions will record in online server or data base, just like website or blog or web blog . There are large number of companies who started E-Accounting. In E-Accounting the accountant and employer both feel satisfaction because, this is cheep and without software defaults or failure. Your accounts saves in online server or database, so there is no need to record manually. By this way we can save large amount of money spending on manual books and different accounting software. E-accounting involves performing regular accounting functions, accounting research and the accounting training and education through various computer based /internet based accounting tools such as: digital tool kits, various internet resources, international web-based materials, institute and company databases which are internet based, web links, internet based accounting software and electronic financial spreadsheet tools to provide efficient decision making. Digital, or e-accounting, dose not have a standard definition but merely refers to the changes in accounting due to computing

and networking technologies. The digital economy of digital enterprises equipped with coherent information systems, that are or can be integrated in the Internet, has a branch called digital accounting, as a result of the technological development in the context of the adoption of standardization and harmonization. Digital accounting, or e-accounting, as a corresponding analog, refers to the representation of accounting information in the digital format, which can than be electronically manipulated and transmitted. It concerns all accounting cycles, processes and functions in an enterprise that uses financial accounting information. An e-accounting system could be thought of as an interorganisational system because of its capability to electronically integrate a set of firms. In many operational applications the accounting entries can be generated as a by-product of the underlying transactions. The current low usage rate of e-accounting systems is believed to make it difficult to utilize the e-accounting to its full benefit, something that may influence the adoption. implementation costs needed to handle the accounting process electronically may thus feel too high in small enterprises compared to the benefits achieved. There seems, however, to exist little previous research on what reasons influence the adoption decision of an electronic accounting system in small and medium-sized accounting agencies. Also, the actual benefits that adopters receive from utilizing an eaccounting system seem to be unexplored so far. The golden rule of digital accounting, or e-accounting, is that we must limit direct take-over in the accounting database from in and out the enterprise, without the prior passing through and verification by the specialized staff of the subsystem with which is associated the initiated operation . Principal task of digital accounting consists in reaching, with the help of specialized IT

procedures, up to the basic level of the enterprise processes. The success of digital accounting will depend on the manner in which the specialized staff of each system will manage to process the necessary data in his database simultaneously with the data already processed by the partner subsystem, and this will lead to quality accounting information .To make the information produced and provided in the electronic accounting information System more reliable, electronic accounting principles were developed by the International Federation of Accountants (IFAC). These principles, including accounting information security and accounting information process principles can be observed by the two groups in the table below. Table 1: E-Accounting Principles Accounting Information Security Principles

Benefits
Faster cycle times these include credit approvals, payments and collections, posting of transactions, closing of the books, generation of records and more time available for higher-level analysis Broader geographic reach

Continuous service availability, 24/7 access, and more satisfied internal and external customers Reduced error rates- that means fewer transactions with errors as well as fewer errors

 Reduced accounting staff and improved productivity Better cash management efficient payments and effective collections Cost saving in mail, paper and storage of paper Improved audit trails and security.

Costs:
Investment required in computers hardware and software Initial need for expensive consultants Cost involved in systems, processes, processing of information and report generationchanges Continual training and retraining needs and/or requirements personnel with specialized skills User resistance Careful attention needs to be paid to security, control and audit requirements for financial transactions

during

the

initial

configurations.

If

the

initial

configuration of the system is not correct or the integration with ERP software or legacy systems is faulty, then there are recurring costs and fewer benefits from the implementation. IT has radically changed the manner in which accounting information is produced,disseminated, and used. Most organizations accounting information is aggregated and stored in enterprise systems IT-based systems that create a central database where accounting information is stored

for use. This is the same information that must be audited for reliability and the same information that is extracted for budgeting, performance monitoring, and business reporting. The most visible change from a financial accounting perspective is the SECs new mandates requiring all public companies to file their annual financial statements with the SEC using interactive tagged data. This mandate is being rolled out across SEC registered companies over a three-year period beginning July 2009. Although the general conclusion is that requiring interactive tagged data will make it easier for financial statement users to access specific data and to compare specific data across companies, the benefits or usefulness of XBRL-tagged data remains unknown. From an audit perspective, two fundamental dimensions of IT change should be considered. First, IT systems are widely used to support the completion of audits and to drive the planning, execution, documentation, and review of the audit. Although on the face this may not seem like a major change, a closer look reveals how these systems drive and structure the audit process. Second, IT systems are increasingly automating audit functions and redefining the role of the auditor. This is particularly true for SOX 404 compliance engagements, but particularly so in ERP environments. These dimensions are subsequently considered in greater detail.

Table 2 Table 2: Comparison of traditional and electronic evidence as presented in APA

Table 2: Comparison of traditional and electronic evidence as presented in APA continued

As indicated in the above table, considerable contributions of e-accounting at the evidence collection and evaluating levels are observed. Evidence from e-accounting process becomes more reliable and there are positive contributions to the effectiveness of the controls.

LUCA WEB Based Accounting System

Information technologies have grown rapidly in recent years. With the introduction of intense employment of information technologies, many benefits like time saving, reduction of transaction costs, acceleration of procedures, minimizing the costs of storing information and producing at the right time were attained. To maintain their businesses and assets and to be successful in the future, producing reliable and convenient reports to international standards for the businesses has become mandatory. With "electronic registry" and "electronic document", Ministry of Finance in Turkey, aimed at minimizing the tax losses. Introduction of the General Regulation in force initiated the rule that the registries and documents which have to be kept in paper have also to be kept in electronic form. In this case, commercial transactions made through the computer came up with the electronic media without using paper. To keep the registry in electronic form, companies' software, staff turnover, and technological infrastructure must be deemed appropriate conditions put forward by the Revenue Administration. Companies to pass through electronic registry applications, software and hardware infrastructure must be very strong. In line with the advances in information technology, changes took place in the accounting standards in the world and Turkey, and the idea of bringing Certified Public Accountants of Turkey together in a central system were the effective factors in the formation of LUCA Web-Based Accounting System project. In order to meet the Electronic environment and hardware requirements of the accounting profession with high quality and low cost with the provision of uninterrupted service to LUCA programme within TRMOB and TESMER that offers electronic media, information service and hardware has

been developed. LUCA project was launched in 2005.With Internet-based accounting system LUCA;

Operating with low-cost, working independently from the center and the time, creating application environment that increases efficiency and productivity.

Eliminated the need for backup

The necessary environment is prepared to produce financial reporting in accordance with the developing worlds standards.

Transition to the E-Government Applications

In the emergency action plan established by Turkish Prime Ministry Circular No. 2003/12 aims to provide citizens with better quality and speed of public service, participatory, transparent, effective and simple business processes in order to create a state structure, "e-Transformation Turkey" project was located. By more efficient utilization of information and communication technologies, the expected outcomes will be: Strengthening decision support systems and make them more effective, Speed up business processes, Increasing efficiency To save time and expenses, and projects developed in various applications. The historical process of IT in the public sector in Turkey is as follows: Manual medium

 AS/400 system (19972000) BYES (Budget Management and Information System 2001 2005) E-budget system (2005 -2010)

AS/400 System
In the transition process to automation, Republic of Turkey Ministry of Finance BUMKO (General Directorate of Budget and Fiscal Control) purchased IBM AS/400 systems to provide IT support to business processes which can be considered as the first liberation attempt to get the rid of manual environment. With this system, data communications between the central and the budget offices will be provided and integrated applications were done. But expectations were not meet and did not pass beyond local practices. Shortcomings of AS /400 Unable to provide full integration Unable to satisfy the need for reporting Data inconsistencies in the system, Unable to interact with the other softwares The problem of the year 2000

E-Budget
With "Public Financial Management and Control Law " adopted at the end of 2003, BYES program was needed to be radically altered because of applications such as multi-year budgeting and central government budget. In this context, in the process of, transition procedures to "the e-Budget" project were carried out. E-budget implementation, including 188

government institutions with more than 11.500 active users within central government was introduced. The distribution of the institutions is as follows: 50 General Budget Administrations, 130 Special Budget Administrations, 8 Regulatory and Supervisory Agencies Serving to over 11.500 users and 188 institutions in total.

Say2000i
Say2000i is web-based automation accounting system developed by Republic of Turkey Ministry of Finance - General Directorate of Public Accounts aiming a transparent, fast and reliable service by including 1274 accounting unit. Say2000i project was started in March 1999, after a successful and quick preparation period, its implementation was started in May 2002 in all accountancies.Say2000i project operates in three layers. These layers are: First layer: the database server, at the center Second layer: application servers, at the center Third layer: end-user level (clients), at the accountancies. With the introduction of database server and application servers at the center, and the say2000i at the accountancies including project functioning on the clients layers the developments below were observed: A system that serves to 12000 users and 15 million remunerations in a year was established.

 Accounting Offices on the web browser (Explorer), which can be used by any computer system. Accountancies can use by any computer system that includes a web browser All the basic data are located on the central data server. The State accounts are monitored on a daily basis, the opportunity of instant communication and information sharing with the other central units. Everyone is aware of application development, updating studies and innovations implemented from a single center at the same time. Say2000i system includes Accounting Module, Employee Module, Health Expenditure, Legislation and the On-line Support modules. The Accounting Module performs daily accounting operations (receipt entry), daily and monthly accounting system supporting cast in accountancies taken and offers the possibilities of keeping the records in the database. The system's modular structure allows the daily developments and new technologies provided from the center to the accountancies in a very short time. Comparison of the processes before and after Say2000i project can be observed by the help of the table below:

Table III: Before and after say2000i

With the implementation of the say2000i project, which is a web based accountancy automation system in all accountancies daily cash situation, all income and expenses, budget expenditures and staff numbers and movements can be monitored centrally. Thus, reliable and timely information is produced for the rational distribution of funds. Public accounts information system is an automation system developed by MBMGM aiming to integrate financial transactions and accounting unit levels of the spending units into a single automation system and to ensure electronic communication between spending units and the accounting units.

Conclusion
In recent years, continuous change and development in the technological field forced a change in the +private and the public sector. This change find itself in the execution of activities, recording these activities and auditing record by showing itself through the process of the realization of control. Recording activities in a correct, honest, and time saving manner is extremely important in terms of faithful reflection of the economic status of institutions and making a sound estimate for various aspects of organizations' development. At the accounting process that serves this important function, taking advantage of superior technology has become an inevitable necessity for the institutions. In this context, technology-oriented changes in accounting practices, along with e-accounting" have been initiated all over the world. Associated initiatives in the public and private sectors in Turkey have been started and continuing throughout the eaccounting applications. This study dwelt on "LUCA webbased accounting system" which was introduced in the private sector and the regulations and practices in the public sector within the transition to the e-accounting process with a chronological order. Without any doubt, this transformation will not be at one time, instead, it will take place after a process of constant change and development. Defects observed in applications will be corrected, improved and new implementations will be employed if necessary. Perhaps even the time of this writing, advances in technology will bring new applications.

References
1] Alves, M. C. G., 2010. Information Technology Roles In Accounting Tasks A Multiple Case Study, International Journal of Trade, Economics and Finance, 1(1), June 2010. 2] Civan M., E. Kara and V. Bal, 2009. LUCA Uygulamali Bilgisayarli Muhasebe, Tesmer Yayin No:80, Desen Ofset, Ankara, 2. bask. 3] Deshmukh, A., 2006. Digital Accounting: The Effects of the Internet and ERP on Accounting, USA, Idea Group.

Websites
www.luca.com.tr www.bumko.gov.tr www.turmob.gov.tr www.muhasebat.gov.tr www.maliye.gov.tr