Accounting software - what is important?

The era of digitalization brings a whole range of valuable achievements to companies. This also applies to the essential but not sales-relevant area of accounting. Accounting software allows these activities to be carried out more efficiently and therefore allows more focus on the core business. But the software must be chosen carefully.

What exactly is accounting software?

Most businesses are required to keep accounts, but this varies depending on the legal form chosen and the corresponding turnover. The obligation to keep accounts is governed by a multitude of complex rules and is based in particular on the commercial code. For more information, continue reading here. It stipulates that the company must document its business transactions in a factual and summary manner. The principles of regular accounting apply in this respect. For companies that are obliged to keep accounts, this is of course a lot of work. Special accounting software helps to reduce them in an optimal way.

Functions of accounting software

In order for the software that the entrepreneur or the person in charge of accounting for a company plans to use to be truly suitable, it is important to have optimal functionality. Classically, business accounting has specific functions. First of all, accounting serves as a basis for annual accounts. The balance sheet or the cost accounting allow determining the result of the company. This in turn forms the basis for taxation by the competent tax authorities. It is therefore very important to keep accounts in accordance with the law. The second important function of accounting is closely related to its informative value. It is of great importance both internally and externally. Internally, accounting allows the deduction of values that can be used to identify savings potential, for example. The accounts are also a perfect basis for the strategic orientation of the company. Externally, the annual accounts provide shareholders and banks, for example, with information on the company's annual results.

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