Advantages of Internet Banking

 Internet Banking  No Responses »
Jan 152011
 

Internet banking or banking via the Internet, can be considered a remarkable development in the banking sector. The ability to carry out banking transactions through the Internet has empowered customers to execute their financial transactions within the comfort of their homes. Besides this, the benefits of Internet banking is not limited to a particular group of people, as it benefits both bankers and customers alike. Let’s have a look at some of the important advantages of Internet banking.

Advantages of Internet Banking

The greatest advantage of Internet banking perhaps lies in the fact that customers are no longer required to wait in those long and wearisome lines of the banks to request a financial transaction or statement. Another important advantage of Internet banking is that it has made the opening of an account quite simple and easy and without much paperwork. The same flexibility can be observed even while closing an account. You can also apply for bank loans without personally visiting any local branch of your bank.

Conventional banking has always been slow and time-consuming, so much so that sometimes you need to wait several hours to process a simple transaction like clearing a check. But, Internet banking has tremendously reduced the time required to process banking transactions, thereby making banking faster and convenient. For the bankers this system is cost-effective, as it has considerably reduced the administrative costs and paperwork related to the transactions. Besides, banks can also cater to the needs of thousands of customers at the same time. All these factors have significantly increased the profit margins of commercial banks by lowering their operating costs. This has enabled them to offer acceptable interest rates on savings account and credit cards.

With the help of Internet banking, you can access any information regarding your account and transactions, any time of the day. This means that you no longer have to depend on the office hours of your bank to obtain information. Therefore, you can regularly monitor your account as well as keep track of financial transactions, which can be of immense help in detecting any fraudulent transaction. In addition to this, fund transfers, both national and international, have also become faster and convenient with Internet banking. Nowadays, you can transfer funds from one account to another within a few minutes. You can easily carry out stock trading, exchanging bonds and other investments with the help of Internet banking. All these features have made Internet banking ideal for people who make a number of financial transactions each day.

In addition to availing banking facilities for 24 hours a day, you can also receive other important information regarding banking policies, rates of interest offered on different types of bank accounts and formalities required in executing various transactions. With such information you can compare the services of different banks and opt for the one that satisfies your individual needs and requirements.

However, there can be some serious disadvantages of Internet banking, out of which the security of your bank account is the most important one. So while availing the facilities of Internet banking, you have to be very careful to ensure the security of your computer and personal information like the password, user name and pin number of your bank account. Otherwise, you may become a victim of computer hacking, which can lead to unauthorized use of your account by computer hackers. Though banks have come up with several security measures, the customers are also required to be a bit careful to ensure security and safety of Internet banking.

 Posted by at 1:21 am  Tagged with:

Internal Controls in Accounting

 Accounting  No Responses »
Jan 102011
 

There are many statutory compliance that have to be fulfilled by companies worldwide. Accounting standards and internal controls in accounting are some of the essential compliance that not only help the companies in managing their finances well, but also help the companies to keep track of liabilities, duties and taxes. The laws regarding internal controls in public corporations and companies are especially stringent due to the fact that public money and the common man’s interest is to be safeguarded with the help of such controls and compliance.

Need of Internal Controls in Accounting
As mentioned above, internal control in accounting is a statutory compliance. These controls are also subject to an annual audit, that is conducted by authorized and certified chartered accountants. The following is a small list of factors that explains the need for such internal controls and also the audit of such controls.

It is extremely essential for any company to keep track of all accounting records and financial statements that are transacted and authenticated by the company in one financial year. This kind of control ensures that the public finances are not misused.
Internal controls are also required to ensure timely payment of liabilities and taxes. These controls are required to uphold the reputation and credit rating of the company.
Internal controls are needed to reduce frauds and criminal activities in the corporate world.
The government, and agencies of the government, can demand financial records of the company, without any notice. These controls, once implemented, help the accounting and finance department of the company to produce financial records in such a short period.
Such internal controls are also required in order to increase the efficiency and effectiveness of financial planning and management.

Elements of Internal Controls in Accounting
There are several elements or policies that are implemented by companies in order to ensure effective internal control:

Segregation of Duties: There are several functions that are always going on in the accounts department of a company, which have to be monitored with the help of internal controls. Segregation of duties is an excellent policy where two different people handle the accounts and physical operation of assets. This policy also involves a series of cross checks and tallies. The double entry system is a very crucial instrument for such a process.
Transactional Authorization: All the transactions are authorized and definition of pricing is also implemented. It means that, during sale and purchase, employees need to follow a particular upper and lower limit policy, regarding prices.
Documentation and Records: There are several different documentations and records that are stored in the company’s computer systems with the help of accounting software. These systems basically ensure a simple functionality, easier cross checks, and reliable audits.
Independent Checks: Internal or external auditors of the company can conduct audits and surprise checks within the organization, in order to ensure that the internal controls are effectively working or not.

Read more on:

Purpose of Accounting
Glossary of Accounting Terms and Definitions

Many directors, owners and managers of companies make public statements regarding the follow-up of internal controls in accounting. Public statements also carry the internal control checklist, that is used by the employees and auditors. Internal controls audit is conducted by appointing a certified chartered accountant. It must be noted that internal controls in accounting have become a statutory compliance, and directives are issued by the government from time to time for their implementation

 Posted by at 3:06 pm

Is Online Banking Safe

 Internet Banking  No Responses »
Jan 102011
 

Online banking allows people to undertake traditional banking activities, like account transfers, payment of bills and requests for stopping payments, via the Internet. Customers can also keep tabs on the account balance from the comfort of their home. In this day and age, online banking has become an indispensable facility for people who are hard pressed for time and find it difficult, if not impossible, to reschedule their busy lives for the sake of making a few withdrawals and deposits. However, there are a few issues that have to be borne in mind in order to avoid being cyber scammed.

Is Online Banking Safe – How Safe is Online Banking?

This question often torments the customer who appreciates the facility of online banking but has a few misgivings about online banking security. An online bank account is accessed with the help of a username and a password. On divulging this information to an impostor, the customer ceases to have control over the online account. The username and the password can be obtained by a trickster in one of the following ways:

Phishing: Phishing is the attempt to acquire potentially sensitive information via email, instant messages, cell phones or through fraudulent websites and social networking websites. Generally, a link spoofing the authentic bank website is sent via email, by scammers, to unsuspecting customers forcing the latter to divulge confidential information like username and password.

Malicious Software: Internet address redirection, which results in redirecting customers to a copycat website that closely resembles the original site, occurs when a malicious software has sneaked into the computer. Hackers may also use a malware program such as keylogger, that allows them to monitor the key strokes. The username and the password can thus be obtained surreptitiously.

Weak Wireless Network Security: Most people who access the Internet from their home, are not tech savvy. They may inadvertently allow others to access their wireless network and retrieve confidential information.

Safe Online Banking Practices

Using Virtual Keyboards: Banks provide the option of using the virtual keyboard as a measure to counteract keylogging malware. The customer should always use the virtual keyboard instead of the physical keyboard.

URL Beginning with “https://”: The website’s URL should begin with “https://” rather than “http://” since the former allows the user to log in by creating a secure channel over an unsecured network.

Safe Access: One should avoid accessing the online bank account from public computers. One should also avoid accessing the account via a public Wi-Fi from one’s laptop. Moreover, a home network ensures safe and secured online banking services.

Choosing a Strong Password: A strong password, that is at least 8 characters long and uses a combination of upper and lower case letters, number and symbols, is ideal.

Choosing Security Questions: Most bank sites allow the user to choose security questions and answers in addition to the username and password. One will be forced to answer this question in case one is accessing the account from a different/unrecognized computer. This provides additional security.

Thwarting Phishing: One should avoid logging into one’s account via a link that has been received in an incoming email requesting a change of username or password. This may help ward off phishing.

The above measures may help us answer in the affirmative to the question, ‘Is online banking safe’. In addition to these measures, one should remember that not all banks operating on the Internet are insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insured banks guarantee deposits less than $100,000. Many banks, that are chartered overseas, are not FDIC insured. To determine whether a bank is FDIC insured, the customer should visit the FDIC website.

 Posted by at 1:11 am  Tagged with:
Page 10 of 10« First...678910
© 2012 Business & Finance Suffusion theme by Sayontan Sinha