Currently, over 30 million people, with modem-equipped computers, have access to the Internet system of information databases and communication services via their local telephone lines. Products and services are being provided online by corporations, universities, libraries, federal government agencies, and numerous other suppliers. Over 100 million users are expected to be online by the end of 1998. It is time for CPAs to start paying attention to what is one of the most significant technological advances occurring in this century.

Explaining the Internet

The forerunner of what today is called the Internet was created by the Federal government in the 1960s to link the separate defense agencies and command posts together in a way that could survive a nuclear strike. Called the Advanced Research Projects Agency (ARPA), it was soon broadened to connect defense researchers at universities across the country. In the early eighties the National Science Foundation (NSF) expanded this concept by linking various supercomputer centers across the country to provide greater computing power to researchers. Soon other companies involved in research began hooking into the system. The people involved with the system found it was a highly efficient and cheap way to communicate because of its electronic mail (e-mail) and data transmission capabilities. As word spread, more and more universities, individuals, and organizations tapped into the system. Finally in 1989, the system was opened to anyone who sought access for noncommercial use under the "acceptable use" clause of the NSF.

As more users come online, that non-commercial use limitation has gradually eroded and the system is quickly changing from one that was academically oriented to one more commercially oriented.

The original intent of the system, to survive a nuclear holocaust by having no "command center," and the added layers of ad-hoc hookups is what gives the Internet its unique shape, power, and quirkiness. The Internet is simply the interconnection of various computer networks around the world, hence the name Internet. Each of these systems maintains its own technology and equipment and interfaces that technology with other networks. The most often asked question is "Who owns and operates the Internet?" The answer is "Well, nobody actually."

Public ownership of the Internet is a thing of the past. The network in the U.S. is owned and operated by a group of private companies like IBM, Performance Systems International, AT&T, UUNET, Sprint, MCI, Netcom, and many others. They all agree to abide by a set of standards and protocols set by the technical committees of the Reston, Virginia based Internet Society, a body with international representation and acceptance. Costs are going down as usage broadens. These companies are investing hundreds of millions of dollars in improving the information infrastructure.

To get on the system you must go through a local Internet Service Provider (ISP). It provides your address and acts as a "gateway" to link you to the rest of the system. Your ISP will usually charge you a fee for this hookup. How much depends on whether your ISP is a commercial venture, or a university or other agency. This variety of gateway access is one cause for complaint about the Internet today because there is no single source. Your ISP is also your sole source for technical assistance and support. This creates the second most common complaint - the poor quality of some ISP's technical support. It is totally dependent on the quality of your ISP. If you are linked through a nonprofit organization, you probably should not expect much in the way of support. Private ISPs, like PSI, Alternet, and IBM Advantis, give excellent support.

Once on the Internet you can actually communicate through various networks because they have all agreed on a single set of rules referred to as Transmission Control Protocol/Internet Protocol or TCP/IP for short. A message, once sent, doesn't go in a straight line from your computer to your target address. It may go any number of ways depending on the existing traffic and technical status at that moment of all the various networks hooked up to the entire system. This robustness is an outgrowth of the nuclear preparation design, if one part of the system goes down, another automatically takes it over. This is the basis for the term "Web" given parts of the system, as in World Wide Web. The entire Internet resembles a spider's web of interconnecting lines as compared to the more typical telephone or power transmission systems normally pictured in our minds.

Navigating this system with its protocol, unfamiliar computer language, maze-like design, lack of central command, and myriad of access avenues is what has made the system so daunting to the typical user who doesn't care about the technological why or how but merely wishes to use it. As a result, a group of "Windows-based" software has emerged that virtually eliminates the need to know the technical stuff. Eudora, Chameleon, Mosaic, and a host of other software products now available take the mystery out of the Internet. They are, in fact, the primary reason for the recent explosive growth in the Internet. What's more, many of these software programs were developed by universities on the Internet and are offered as "shareware" and "freeware," making them extremely low cost. Eudora is a Windows-based e-mail program that makes sending messages simple and fast. Mosaic is a Windows-based program that allows the user to "point and shoot" through cyberspace using little more than a click of the mouse. Other programs are coming online that will make it even faster and easier and as the commercial services begin managing and improving the system, it should become even more user friendly.

Why Should CPAs Got on the Internet?

The answer to that question is many faceted. Here are nine reasons to connect to the Internet today.

Awareness and Understanding. The Internet is the future, today. It represents a monumental change in the way communications, and in the future, business, will be done. Hooking into the Internet is a way to view and understand that world today. If you are a business advisor, it is important to know and understand this system so you can help clients access the power and opportunities available to them.

Low cost. The Internet is a less expensive way to communicate with other offices, clients, or compatriots. Your primary cost is your hookup fee and your monthly fee to your link provider. For many in large cities where there are local access providers, this can be as low as about $50 to start and $40 a month for unlimited usage. This means you can send all the e-mail, data, and "surf the net" worldwide for no additional cost. Compare that to your fax bill using long-distance carriers. If you are in a remote area, there is a good chance a local university can provide a local hookup.

Universality. The person on the other end does not have to be using the same phone company, compute, software, or communications program. They only need the TCP/IP software link capability.

Access. You can reach and be reached by almost anyone in the world from a telephone line and then share information and compute resources. In fact, the Internet hookups in the former Eastern Bloc countries are better than their phone systems because they use computer power rather than the antiquated phone exchange systems put in place 40 years ago.

Quality. Although the quality of support is mixed, the quality of the transmission is first-rate because it is coming over the most sophisticated electronic, communications and computer processing equipment available today.

Power. The ability of the Internet to handle information in the form of computer bytes is unsurpassed. If you have an integrated service digital network (ISDN) line hooked directly to your computer from your phone company (available in most parts of the country), you can transmit entire files, software programs, and other data in a matter of seconds compared to the typical slow transmission inherent in faxes and other e- mail systems.

Opportunity. There are an estimated 30 million users of the Internet today with growth expected to average between 10 and 20% per month over the next several years. These are highly intelligent, educated people - the market CPAs normally work with. This means there is an opportunity to access these people in very direct and imaginative way. It is important to realize the Internet does not differentiate organizations by size, only quality of information. Through the Internet you can set up an address and make yourself and your knowledge available across the country rather than just your own physical locale.

TABULAR DATA FOR EXHIBIT 1 OMITTED

Information. Literally thousands of databases sitting at government, university, and library facilities can be made available through the computer technology that makes up the Internet. Now you can have access to information at a fraction of the time cost.

Competition. Your competition is getting on it, so maybe you should too.

What Is the Difference Between the Internet and Other Services?

Online systems such as Compuserve, Prodigy, America Online, Dialog, Nexis, and Dow Jones Information, to name a few, are commercially available through the phone system. They have their roots in the privately owned bulletin boards that have now evolved into a structured industry. Three commercial services account for four million users - America Online, CompuServe, and Prodigy. Through these online services, users can obtain items such as photocopies and stock quotes, and access to various databases. Messaging features include e-mail, document delivery, bulletin boards, FAX services, customer summary reports, and billing services. They charge fees for these services, with fees being as little as 50 cents for a three-page document to commercially marketed online databases charging an average of between $5 to $15 for an hour of online time. Fees are based on what you use and when you use it and the cost of the information itself ranging from one dollar to several hundred dollars, depending on what you retrieve.

Commercial online services are providing more Internet functions. Microsoft recently announced it would provide full access to the Internet through its own online service that it plans to start later this year. Prodigy now provides access to the World Wide Web. Other services will be forced to follow to remain competitive.

What Is the Difference Between the Internet and Bulletin Boards?

Bulletin boards (BBS) and special interest groups (SIGS) are ways for people with shared interests to become acquainted over telephone lines to a single computer station. The operator of the central computer and hence the BBS allows people access to the computer to leave messages or access various databases. Fees are then generally paid directly to the BBS operator on a monthly subscription basis or an individual access fee basis.

"Surfing" the Net

The Internet is currently where the action is because it has the greatest potential and offers the most opportunities to expand your practice. Once on the Internet you can go anywhere and do anything a computer will let you do. The key is not only locating what you want but, more importantly, notifying your target audience that you also can be located. Although you will have an e-mail address just by virtue of being linked through an access provider, there is an even more useful way to be present on the Internet. Known as a "home page," this is a special type of address that, when accessed, allows a visitor to actually view on their screen your logo, salutation, and a list of choices to select. The visitor can make their selections with a mouse. More importantly, some of these choices can be links to other "home page" addresses anywhere in the world. For example, when you visit the U.S. Census Bureau home page you will see the bureau's insignia, a list of selections you may choose, and a list of other addresses - primarily universities, who do demographic research you can go to. Simply by highlighting the university name and clicking your mouse you will automatically be routed to that address and be provided lists of options and other addresses. At any time you can return to a previous address.

The program that makes this possible is called Mosaic and it was developed at the University of Illinois - Urbana-Champaign, a supercomputer center on the Internet. The program is free and is one of the reasons for the Internet's growth. Exhibit 1 shows how to obtain this software. By getting your own home page and then making information available from your database, as well as providing a list of other useful addresses, you can establish yourself a "destination" of choice. With it you instantly gain a national and international presence. Remember - size has no meaning on the Internet. It is the expertise and availability you offer that is important. This can be an excellent way to leap-frog your competition and expand your practice.

Hooking Up to the Internet

To get on the Internet you will need to find an ISP; someone who offers access to others. There are currently hundreds of ISPs in the country and more coming aboard each month. Here are some pointers in choosing an ISP:

* Watch for the type of access; many offer only e-mail. This is not real access. With e-mail you can only receive and send messages to known addresses, you can't peruse the Internet.

* Watch for features. Some will provide additional space, power, and features through their computers. You need only a PC and a modem. Others may provide only a bare bones hookup that may require you to dedicate your own computer using UNIX as the language to take advantage of some of the higher features like a home page. It's better and cheaper to find a full service provider because they provide the high-end equipment and cover maintenance.

* Watch for the amount and types of charges. Most charge a setup fee and a monthly charge and some may also charge for online time usage. Find one that charges a flat rate with unlimited usage per month or one that gives you sufficient hours at a flat fee.

* Watch for support and training. Most services view themselves as "wire" providers. They hook you up and you're on your own from there. Because of the complexity, it is better to be with a service that can also provide online support in case you get lost or can't find something. For a higher fee, you can find a service that will let you use space on their system so that you can create and maintain a home page.

Exhibit 2 contains information on the various types of connections available. Many offer a free trial period or have a refund policy. So go ahead - try it.

RELATED ARTICLE: EXHIBIT 2 TYPES OF CONNECTIONS

Dial-Up UNIX Shell Account

The account with the lowest cost is called a UNIX shell account, a dial- in terminal account or a command-line account. Under this type of service, the Internet is reached by dialing an Internet service provider through a modem and terminal emulation software. The user is connected to the service provider's host machine as a terminal and has access to the UNIX command line. The user's computer does not have its own Internet name or address and is not connected directly to the Internet. All Internet commands, such as file transfers and e-mail, use the software on the Internet provider's computer to communicate with the sewer software on host machines where desired information resides. File transfers, e-mail, etc. directed toward users with this type of account are received by the Internet provider and stored in the user's workspace area on the provider's UNIX machine. While mail and other information in the user's workspace can be viewed while online with the service provider, users must take a second step and use the file transfer function of their terminal emulation software if they wish to download files from their workspace to their personal computer.

Unfortunately, this type of connection is too slow to use the graphics of Mosaic and the World Wide Web, along with other applications with graphics, sound, and video. Since there is no direct Internet connection, this is the most secure type of service. Hackers cannot use the Internet to get into computers of shell account users. Of course, the same caution regarding viruses should be exercised with downloaded Internet files as with all foreign files copied onto a personal computer.

Dial-Up SLIP/PPP Account

In this case, users obtain a dial-up Internet Protocol (IP) link such as Serial Line Internet Protocol (SLIP) or Point-to-Point Protocol (PPP). Users do not need to dedicate a telephone line for this service, but service providers guarantee a connection. Under this type of service, users must have the client software on their personal computer for the applications they intend to use (e-mail, file transfer, World Wide Web, etc.) as well as other special, though not costly or difficult-to- acquire, software. Internet Chameleon and Internet in a Box are two integrated packages that have all the software you need. The Internet service provider will specify what is needed. Users are connected directly to the Internet during the time of their call to their service provider. The advantages are that mail and files are received directly by the user's machine and the bandwidth is available to utilize graphics, audio, and video applications. The disadvantages are the higher cost and the need for more attention to security. Two high- quality SLIP/PPP providers that offer 29 hours of prime time for $29 per month are PSI at (800) PSI-3031 and IBM at (800) 727-2222.

Leased-Line Connections

Leased lines are like the dial-up SLIP/PPP accounts except the user is connected continuously. This type of connection has high fixed installation and fixed monthly cost. Advantages are that there are no metered costs and the speed and traffic that can be carried is expanded. Security considerations become more important when connecting a personal computer or a LAN to a leased-line Internet connection. The cost of a leased line is considerably higher than the relatively inexpensive shell and slip accounts.

Pipeline and NetCruiser

Two products have been developed that offer an all-in-one solution to Internet access. Pipeline (212) 267-3636, offers easy-to-install software and telephone access. Pipeline allows the use of the World Wide Web and multitasking of Internet functions. Rates for the Pipeline start at $15 per month, although several pricing schemes are available.

The other product, NetCruiser by NetCom (800) 501-8649, is similar to Pipeline, but NetCruiser does not allow multitasking. The main attraction of NetCruiser is the cost: 40 weekday hours a month for $19.95, plus unlimited time on weekends and off-peak hours.

Tim Beauchemin manages a network of CPA firms and serves as a management consultant to local firms across the country. He is a frequent speaker and writer on subjects affecting the economic health of the public practitioner.

John Graves, CPA, is president of Kent Information Services, Inc., publisher of the Internet Bulletin for CPAs, the CPA's Internet Reference Guide, and a number of continuing professional educational courses on Internet use.