What is accounting software?

Companies that keep their own accounts must choose accounting software. AAS-CAS offers you a detailed sheet on the presentation of accounting software intended to answer the question: what is accounting software? It discusses the definition of software, reveals its functionality and demonstrates its usefulness .

Definition of accounting software

Accounting software is an accounting and financial computer program  used to keep the accounts . It allows to transcribe all the transactions carried out by the company with its partners (customers, suppliers, employees, associates, bank).

Accounting software can be developed internally by the company or purchased directly from a software publisher .

When a company maintains its own accounts using its own software, it can request a Chartered Accountant to perform a mission of presenting the annual accounts. The Chartered Accountant professional will draw up a certificate on the consistency and plausibility of the annual accounts.

Accounting software features

Usually, accounting software offers many features . Here they are in detail.

Keep general accounts

It is a question of choosing your chart of accounts and possibly setting it up, creating and setting up journals and above all to record accounting entries in different journals. Some accounting software can effectively manage subscription accounts.

Manage transactions with third parties

The Customized accounting software allows consultations and editions of general and auxiliary accounts (customer accounts, supplier accounts, salary accounts). They make it possible to read the balances and to letter the accounts of third parties. Some also offer to generate letters in the event of late payment by customers. The functionalities are more or less extended depending on the range chosen. Finally, they can integrate a bank reconciliation module, very useful for companies that carefully manage their cash flow.

Manage fixed assets

Some software offers a fixed asset management module which allows you to: enter fixed assets, manage their depreciation method (linear, declining balance), their depreciation period, asset disposals, calculate the amount of allocations to depreciation (at the end of the year, at a given date or planned over several years) and generate the accounting entries for depreciation charges (see integrating them directly into the accounts). It is also possible to track leased, leased or leased goods. In the event of a sale, the fixed asset management software can calculate the capital gains or losses on the sale and manage their tax treatment.

Maintain cost accounting

This functionality is not present in all software but it makes it possible to define analytical axes in order to break down the expenses of the company to ensure quality management control and efficient budget monitoring.

Generate financial and tax documents

The accounting software allows you to edit the annual accounts: accounting balance sheet , income statement and appendix and various other statements (interim management balances, general balance). Sometimes, they also take care of VAT declarations, generation of the tax package and various other declarations (CVAE for example). On the other hand, they must be able to generate the accounting entries file (FEC) .

Export data (data exchange)

This characteristic is very interesting since it allows the company to export all or part of its accounting in order to integrate it, for example, into the software of its Chartered Accountant. It also allows you to import them.

Usefulness of accounting software

The use of accounting software allows a considerable time saving and ensures a drastic reduction in the risk of making mistakes . When the information is correctly entered in the computer system, the software ensures the uniqueness of the information . Finally, the production of financial documents is completed more quickly.

Accounting software is an important management and analysis tool . They have many advantages and few disadvantages .

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VSEs and SMEs that keep their accounts themselves frequently use accounting software. Commercial management software can be integrated into this solution if necessary. In large companies, on the other hand, it is rather customary to resort directly to an ERP software package .