FROM TRADITIONAL TO DIGITAL: AN EXAMINATION OF THE EVOLUTION OF E-COMMERCE AND E-COMMERCE ACCOUNTING

This article explores the historical evolution of commerce and its transformative effect on accounting systems. It begins by discussing the classical definitions of trade by thinkers like Ibn Khaldun and Adam Smith to establish the core principles of traditional commerce. The study then analyzes the historical development of e-commerce, from its early steps with technologies like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) in the 1970s, to the rise of online marketplaces like Amazon and eBay in the 1990s, and to the emergence of mobile and social commerce in the 2000s. The primary focus of the article is on the innovations e-commerce has brought to traditional accounting models. These include a shift to a more flexible accounting framework, the adoption of digital documents, the complexity of revenue recognition processes, and the increased role of automation. It also addresses the new challenges of international taxation and currency fluctuations. In conclusion, the article argues that e-commerce has become more than just a sales channel; it has created a new paradigm for the field of accounting, setting the stage for future research.