eGECKO Accounting Software for Ambitious SMEs
Things to Know about Accounting Software
What is accounting software?
Accounting software is a digital application that helps you manage your business finances. It helps companies track expenses, sales and other financial information. The software also allows for easy reporting and data analysis. Routine work can be done quickly and easily.
What should accounting software be able to do?
The tasks in accounting are diverse and go beyond the classic dunning, paying and posting. The most important functions of an accounting software include:
- Financial Accounting: Handling of commercial business processes
- Asset Accounting: Transparency through integrated asset accounting
- Group management: individual mapping of hierarchical group structures for convenient consolidation
- Contract Management: Overview of all contracts and respective contract data
- purchase invoice workflow: Digitalization of documents for a secure workflow according to the GoBD principles as well as acceleration of internal processes
- Document Archive: Structured storage of documents for quick and convenient access
- E-Balance: Electronic and secure transmission of the balance sheet to the tax authorities without restructuring current charts of accounts.
Why do you need accounting software?
According to § 238 of the Commercial Code, every merchant is obliged to keep books and to make his business transactions evident in them and the situation of his assets in accordance with the principles of proper bookkeeping. The bookkeeping must be such that it can provide an expert third party with an overview of the business transactions and the situation of the enterprise within a reasonable period of time.
The business transactions must be traceable in their origin and processing. The merchant is obliged to retain a reproduction of the dispatched business letters (copy, print, transcript or other reproduction of the wording on a written, visual or other data carrier) that corresponds to the original.
What is the difference between bookkeeping and accounting?
Bookkeeping and accounting are sometimes used synonymously. However, bookkeeping is only one part of the wider range of accounting. While book-keeping involves the recording of transactions and thus more administrative activities, accounting uses this data for analytical purposes. Thus, bookkeeping purely serves for external accounting, while controlling is part of internal accounting. eGECKO fully integrates all these areas as bookkeeping software, accounting software or as a complete controlling system.
Bookkeeping is therefore purely for external accounting, while controlling is part of internal accounting. eGECKO fully integrates all areas as bookkeeping software, accounting software or as a complete controlling system.
What is the difference between accounting and financial accounting?
Financial accounting, short FINA, is understood to be a sub-area of accounting. Financial accounting is the systematic recording, measuring, analysis and communication of information about an organisation's finances. This includes the preparation of financial statements that provide information about assets, liabilities, income, expenses, changes in equity capital and cash flows in the course of time.