{"id":111657,"date":"2024-05-13T15:43:39","date_gmt":"2024-05-13T13:43:39","guid":{"rendered":"https:\/\/www.applus-erp.de\/wissen\/glossar\/finance-and-accounting\/"},"modified":"2025-11-11T14:34:55","modified_gmt":"2025-11-11T13:34:55","slug":"finance-and-accounting","status":"publish","type":"glossar","link":"https:\/\/www.applus-erp.de\/en\/knowledge\/glossary\/finance-and-accounting\/","title":{"rendered":"Accounting"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Definition: What is (management) accounting?<\/h2>\n\n<p class=\"wp-block-paragraph\">Accounting is one of the essential tasks of every company: <strong>all financially assessable processes or transactions<\/strong> are <strong>recorded, structured and evaluated<\/strong>. This allows you to maintain an overview of your financial resources and the success of your own activities.   <\/p>\n\n<p class=\"wp-block-paragraph\">On the one hand, this information enables internal managers to <strong>plan and make<\/strong> better <strong>decisions<\/strong>. On the other hand, the state obliges companies to have a correct accounting system and to <strong>provide information to tax authorities or investors<\/strong>. Important accounting tools include bookkeeping, controlling, profit and loss accounts, balance sheets and annual financial statements.    <\/p>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"113478\" class=\"elementor elementor-113478 elementor-23433\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-7f7ddec e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"7f7ddec\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-00fb37a elementor-grid-1 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-widget elementor-widget-loop-grid\" data-id=\"00fb37a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;template_id&quot;:112968,&quot;columns&quot;:1,&quot;_skin&quot;:&quot;post&quot;,&quot;columns_tablet&quot;:&quot;2&quot;,&quot;columns_mobile&quot;:&quot;1&quot;,&quot;edit_handle_selector&quot;:&quot;[data-elementor-type=\\&quot;loop-item\\&quot;]&quot;,&quot;row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"loop-grid.post\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-loop-container elementor-grid\" role=\"list\">\n\t\t<style id=\"loop-112968\">.elementor-112968 .elementor-element.elementor-element-71faf02{--display:flex;--flex-direction:row;--container-widget-width:calc( ( 1 - var( --container-widget-flex-grow ) ) * 100% );--container-widget-height:100%;--container-widget-flex-grow:1;--container-widget-align-self:stretch;--flex-wrap-mobile:wrap;--align-items:center;--gap:40px 40px;--row-gap:40px;--column-gap:40px;}.elementor-112968 .elementor-element.elementor-element-2bc2467 img{max-width:270px;}.elementor-112968 .elementor-element.elementor-element-2bc2467{margin:0px 0px calc(var(--kit-widget-spacing, 0px) + 0px) 0px;}.elementor-112968 .elementor-element.elementor-element-7876078{--display:flex;}.elementor-112968 .elementor-element.elementor-element-180f467 .elementor-heading-title{font-family:\"Nunito\", Sans-serif;font-size:32px;font-weight:900;text-transform:none;line-height:1.2em;color:var( --e-global-color-secondary );}.elementor-112968 .elementor-element.elementor-element-1c48798{color:var( --e-global-color-secondary );}.elementor-112968 .elementor-element.elementor-element-5a57b9a .elementor-button{font-size:18px;font-weight:500;fill:#707070;color:#707070;background-color:rgba(2, 1, 1, 0);box-shadow:0px 0px 0px 0px rgba(0,0,0,0.5);border-style:solid;border-width:0px 0px 4px 0px;border-color:var( --e-global-color-5a6c6f85 );border-radius:0% 0% 0% 0%;padding:10px 0px 6px 0px;}.elementor-112968 .elementor-element.elementor-element-5a57b9a .elementor-button:hover, .elementor-112968 .elementor-element.elementor-element-5a57b9a .elementor-button:focus{color:var( --e-global-color-secondary );border-color:var( --e-global-color-60921509 );}.elementor-112968 .elementor-element.elementor-element-5a57b9a .elementor-button:hover svg, .elementor-112968 .elementor-element.elementor-element-5a57b9a .elementor-button:focus svg{fill:var( --e-global-color-secondary );}.elementor-112968 .elementor-element.elementor-element-5a57b9a{margin:10px 0px calc(var(--kit-widget-spacing, 0px) + 3px) 0px;padding:0px 0px 0px 0px;width:auto;max-width:auto;}@media(max-width:1024px){.elementor-112968 .elementor-element.elementor-element-5a57b9a{margin:0px 0px calc(var(--kit-widget-spacing, 0px) + 0px) 0px;}}@media(min-width:768px){.elementor-112968 .elementor-element.elementor-element-71faf02{--content-width:800px;}.elementor-112968 .elementor-element.elementor-element-7876078{--width:66.6%;}}@media(max-width:767px){.elementor-112968 .elementor-element.elementor-element-71faf02{--gap:0px 0px;--row-gap:0px;--column-gap:0px;}.elementor-112968 .elementor-element.elementor-element-2bc2467{padding:0px 0px 0px 0px;}.elementor-112968 .elementor-element.elementor-element-7876078{--margin-top:0px;--margin-bottom:0px;--margin-left:0px;--margin-right:0px;--padding-top:0px;--padding-bottom:0px;--padding-left:0px;--padding-right:0px;}.elementor-112968 .elementor-element.elementor-element-180f467 .elementor-heading-title{font-size:30px;}.elementor-112968 .elementor-element.elementor-element-5a57b9a{margin:0px 0px calc(var(--kit-widget-spacing, 0px) + 0px) 0px;}}<\/style>\t\t<div data-elementor-type=\"loop-item\" data-elementor-id=\"112968\" class=\"elementor elementor-112968 elementor-63106 elementor-63106 e-loop-item e-loop-item-115560 post-115560 whitepaper type-whitepaper status-publish has-post-thumbnail hentry whitepaper_categories-digital-transformation-in-small-and-mid-sized-enterprises content_category-corporate-development\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\" data-custom-edit-handle=\"1\">\n\t\t\t<div class=\"elementor-element elementor-element-71faf02 e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"71faf02\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2bc2467 elementor-widget elementor-widget-image\" data-id=\"2bc2467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-image\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" width=\"1210\" height=\"1511\" src=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png\" class=\"attachment-full size-full wp-image-106849\" alt=\"Digital transformation in SMEs | Whitepaper\" srcset=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png 1210w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-240x300.png 240w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-820x1024.png 820w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-768x959.png 768w\" sizes=\"auto, (max-width: 1210px) 100vw, 1210px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7876078 e-con-full e-ecs-flex e-flex e-con e-parent\" data-id=\"7876078\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t<div data-dce-title-color=\"#54595F\" class=\"elementor-element elementor-element-180f467 elementor-widget elementor-widget-heading\" data-id=\"180f467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-title\">Free Whitepaper<\/a><\/p>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1c48798 elementor-widget elementor-widget-text-editor\" data-id=\"1c48798\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFrom tool to basis for success: How your ERP becomes the engine of your digital strategy.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div data-dce-background-color=\"rgba(2, 1, 1, 0)\" class=\"elementor-element elementor-element-5a57b9a elementor-widget__width-auto res sec-link  elementor-widget elementor-widget-button\" data-id=\"5a57b9a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Request now for free<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\n<h2 class=\"wp-block-heading\">The four tasks of accounting<\/h2>\n\n<h3 class=\"wp-block-heading\">Documentation<\/h3>\n\n<p class=\"wp-block-paragraph\">Legislation stipulates that all <strong>business transactions<\/strong> in a company must be <strong>fully recorded<\/strong>: they are posted to so-called accounts. Associated <strong>documents<\/strong> such as invoices and delivery bills are also collected and archived. This is intended to prevent fraud and tax evasion, for example. Documentation is also the <strong>basis for all other<\/strong> accounting <strong>tasks<\/strong>: a company can only be managed responsibly if you know about its financial situation.   <\/p>\n\n<h3 class=\"wp-block-heading\">Duty to inform<\/h3>\n\n<p class=\"wp-block-paragraph\">Companies are also required to publish certain figures. The tax authorities use the <strong>annual financial statements<\/strong> to determine the tax burden or other statutory payment obligations. Banks, investors or suppliers want to find out about a company&#8217;s situation before they invest or conclude a transaction.  <\/p>\n\n<h3 class=\"wp-block-heading\">Control<\/h3>\n\n<p class=\"wp-block-paragraph\">The management makes decisions based on the figures from the accounting system. It can assess which activities bring the best results, which processes should be optimized or which risks are imminent. To this end, management and executives receive <strong>regular reports and evaluations<\/strong> from Controlling.  <\/p>\n\n<h3 class=\"wp-block-heading\">Planning<\/h3>\n\n<p class=\"wp-block-paragraph\">The management also wants to make strategic decisions for the future. To do this, it not only needs current figures, but also plans or <strong>forecasts about the likely development of<\/strong> the company. It sets <strong>targets<\/strong> and develops measures to achieve them.  <\/p>\n\n<h2 class=\"wp-block-heading\">Sub-areas of accounting<\/h2>\n\n<h3 class=\"wp-block-heading\">Financial accounting (external accounting)<\/h3>\n\n<p class=\"wp-block-paragraph\">Financial accounting (FiBu) <strong>documents<\/strong> all <strong>business transactions<\/strong> and creates financial <strong>reports<\/strong> from them. These are primarily intended to provide objective information for external recipients: <\/p>\n\n<ul class=\"wp-block-list\">\n<li>Tax office and other state authorities<\/li>\n\n\n\n<li>Employees<\/li>\n\n\n\n<li>Suppliers<\/li>\n\n\n\n<li>Banks, creditors<\/li>\n\n\n\n<li>Partners, investors, shareholders<\/li>\n\n\n\n<li>Press and public<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Important financial accounting instruments are<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>General ledger<\/strong>: The central ledger in which all business transactions are recorded in their accounts. It provides a comprehensive overview of all financial activities. <\/li>\n\n\n\n<li><strong>Sub-ledgers<\/strong>: Used to record specific business transactions in detail that are summarized in the general ledger. Examples are the accounts receivable and accounts payable ledger, asset ledger, stock ledger, etc. <\/li>\n\n\n\n<li><strong>Chart of accounts<\/strong>: A systematic list of all accounts used in a company&#8217;s accounting, organized according to a specific scheme.<\/li>\n\n\n\n<li><strong>Journal<\/strong> (diary): A chronological record of all business transactions before they are transferred to the general ledger.<\/li>\n\n\n\n<li><strong>Balance list<\/strong>: A list showing all account balances at a specific point in time. It is used to check the account balances and prepare the annual financial statements. <\/li>\n\n\n\n<li><strong>Cash book<\/strong>: Records all cash movements, both deposits and withdrawals.<\/li>\n\n\n\n<li><strong>Profit and loss account (P&amp;L)<\/strong>: Shows the income and expenses of a company over a certain period of time and determines the profit or loss.<\/li>\n\n\n\n<li><strong>Balance sheet<\/strong>: A comparison of a company&#8217;s assets (assets) and liabilities (liabilities) at a specific point in time, which shows the financial situation. It is usually prepared for the annual financial statements. <\/li>\n\n\n\n<li><strong>Notes<\/strong>: Explains and supplements the figures presented in the annual financial statements and is part of the official annual financial statements.<\/li>\n\n\n\n<li><strong>Management report<\/strong>: Provides an overview of the company&#8217;s economic situation, including developments, risks and outlook. This is particularly relevant for stock corporations. <\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">The German Commercial Code regulates the obligations of companies in the context of financial accounting.<\/p>\n\n<p class=\"wp-block-paragraph\">The main purpose of this area is to provide information to external bodies. Nevertheless, the documented figures are also used for other internal purposes. <\/p>\n\n<h3 class=\"wp-block-heading\">Controlling (internal accounting)<\/h3>\n\n<p class=\"wp-block-paragraph\">Controlling supports company management in monitoring and controlling all company processes. It provides <strong>data as a basis for internal decisions<\/strong>. In particular, it monitors whether plans have been adhered to and targets achieved. The aim is to ensure the <strong>profitability and efficiency<\/strong> of the company.   <\/p>\n\n<p class=\"wp-block-paragraph\">The information is intended for management, executives and cost center managers.<\/p>\n\n<p class=\"wp-block-paragraph\">Important controlling instruments are<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Cost accounting systems<\/strong>: Used to record, allocate and analyze costs. These include full cost, partial cost, process cost, cost element, cost center, cost object and cost object unit accounting. <\/li>\n\n\n\n<li><strong>Key figure systems<\/strong>: The performance of the company is monitored and evaluated by determining individual, meaningful key figures, for example ROI (return on investment) and cash flow (liquidity)<\/li>\n\n\n\n<li><strong>Risk management<\/strong>: Identification, analysis, evaluation and control of risks in order to ensure the achievement of corporate goals.<\/li>\n\n\n\n<li><strong>Reporting<\/strong>: Systematic preparation of analyses and reports on the company&#8217;s financial and operational performance for internal persons.<\/li>\n<\/ul>\n\n<h3 class=\"wp-block-heading\">Business statistics and comparative accounting<\/h3>\n\n<p class=\"wp-block-paragraph\">In this area, statistical methods and various types of analyses and comparisons are used to <strong>gain new insights<\/strong>. Both internal business data and external <strong>data<\/strong> are <strong>collected and evaluated<\/strong> for this purpose. The recipients of the analyses are potentially all internal departments; these are to be supported in controlling, planning and other decisions.  <\/p>\n\n<p class=\"wp-block-paragraph\">Important instruments or methods in this area are<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Descriptive statistics<\/strong>: Includes the description, preparation and presentation of data sets. This includes measures such as mean, median, mode, dispersion and the creation of frequency distributions. <\/li>\n\n\n\n<li><strong>Inferential statistics<\/strong>: Enables conclusions to be drawn about the population on the basis of samples. Methods such as confidence intervals and hypothesis tests are common here. <\/li>\n\n\n\n<li><strong>Time series analysis<\/strong>: Examines data collected over a period of time to identify trends, seasonal fluctuations and cyclical patterns.<\/li>\n\n\n\n<li><strong>Index figures<\/strong>: Are used to show the relative change in economic variables over time or in comparison to a base period. Examples are price, quantity and value indices. <\/li>\n\n\n\n<li><strong>Correlation and regression analysis<\/strong>: Determine the relationship between two or more variables. While correlation analysis measures the strength and direction of a relationship, regression analysis attempts to model the nature of the relationship and make predictions. <\/li>\n\n\n\n<li><strong>Benchmarking<\/strong>: A systematic comparison of processes, products or services with those of the strongest competitors or companies that are considered the best in the industry in order to identify performance gaps and derive improvement measures.<\/li>\n\n\n\n<li><strong>ABC analysis<\/strong>: A method of classifying objects (e.g. customers, products) based on their importance, with A being the most important category and C the least important. Often used to prioritize management measures. <\/li>\n<\/ul>\n\n<h3 class=\"wp-block-heading\">Planning calculation<\/h3>\n\n<p class=\"wp-block-paragraph\">Planning includes the preparation of <strong>financial plans, budgets and forecasts<\/strong> in order to <strong>manage future business activities<\/strong>. Among other things, the plans are used to decide how much money will be spent on what, how much staff or other resources are required and what measures a company wants to implement. This information is primarily required by the management, the finance department and the cost center managers.  <\/p>\n\n<p class=\"wp-block-paragraph\">Important instruments in the area of planning are<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Budgeting<\/strong>: The preparation of budgets for specific periods (usually one year) for various areas or projects within the company. Budgets serve as financial guidelines and targets. <\/li>\n\n\n\n<li><strong>Financial planning<\/strong>: Long-term planning of cash flows to determine liquidity, capital requirements and sources of financing. Financial planning includes capital requirements planning, source of funds planning and liquidity planning. <\/li>\n\n\n\n<li><strong>Cash flow statement<\/strong>: Forecasts the cash flows that flow in and out of the company in order to monitor and secure liquidity. It is a key tool for short to medium-term financial planning. <\/li>\n\n\n\n<li><strong>Investment appraisal<\/strong>: Evaluates the profitability of investments using methods such as the net present value method, internal rate of return method, amortization calculation and the annuity method. These analyses support decisions on capital investments. <\/li>\n\n\n\n<li><strong>Break-even analysis:<\/strong> Determines the point at which the total costs and total revenue of a product or project are equal, i.e. no profit or loss is made. This helps to assess financial feasibility. <\/li>\n\n\n\n<li><strong>Scenario analysis:<\/strong> Develops various &#8220;what-if&#8221; scenarios (best case, worst case, realistic) to evaluate potential futures and their impact on the company.<\/li>\n\n\n\n<li><strong>Risk management<\/strong>: Identifies and evaluates risks that could impair the achievement of financial targets and develops strategies to minimize risks.<\/li>\n\n\n\n<li><strong>Rolling forecast:<\/strong> A dynamic planning method in which plans are regularly updated to reflect changes in the business environment or business objectives.<\/li>\n<\/ul>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"113478\" class=\"elementor elementor-113478 elementor-23433\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-7f7ddec e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"7f7ddec\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-00fb37a elementor-grid-1 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-widget elementor-widget-loop-grid\" data-id=\"00fb37a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;template_id&quot;:112968,&quot;columns&quot;:1,&quot;_skin&quot;:&quot;post&quot;,&quot;columns_tablet&quot;:&quot;2&quot;,&quot;columns_mobile&quot;:&quot;1&quot;,&quot;edit_handle_selector&quot;:&quot;[data-elementor-type=\\&quot;loop-item\\&quot;]&quot;,&quot;row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"loop-grid.post\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-loop-container elementor-grid\" role=\"list\">\n\t\t\t\t<div data-elementor-type=\"loop-item\" data-elementor-id=\"112968\" class=\"elementor elementor-112968 elementor-63106 elementor-63106 e-loop-item e-loop-item-115560 post-115560 whitepaper type-whitepaper status-publish has-post-thumbnail hentry whitepaper_categories-digital-transformation-in-small-and-mid-sized-enterprises content_category-corporate-development\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\" data-custom-edit-handle=\"1\">\n\t\t\t<div class=\"elementor-element elementor-element-71faf02 e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"71faf02\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2bc2467 elementor-widget elementor-widget-image\" data-id=\"2bc2467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-image\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" width=\"1210\" height=\"1511\" src=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png\" class=\"attachment-full size-full wp-image-106849\" alt=\"Digital transformation in SMEs | Whitepaper\" srcset=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png 1210w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-240x300.png 240w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-820x1024.png 820w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-768x959.png 768w\" sizes=\"auto, (max-width: 1210px) 100vw, 1210px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7876078 e-con-full e-ecs-flex e-flex e-con e-parent\" data-id=\"7876078\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t<div data-dce-title-color=\"#54595F\" class=\"elementor-element elementor-element-180f467 elementor-widget elementor-widget-heading\" data-id=\"180f467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-title\">Free Whitepaper<\/a><\/p>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1c48798 elementor-widget elementor-widget-text-editor\" data-id=\"1c48798\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFrom tool to basis for success: How your ERP becomes the engine of your digital strategy.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div data-dce-background-color=\"rgba(2, 1, 1, 0)\" class=\"elementor-element elementor-element-5a57b9a elementor-widget__width-auto res sec-link  elementor-widget elementor-widget-button\" data-id=\"5a57b9a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Request now for free<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\n<h2 class=\"wp-block-heading\">Important accounting terms<\/h2>\n\n<h3 class=\"wp-block-heading\">Double-entry bookkeeping (debit and credit)<\/h3>\n\n<p class=\"wp-block-paragraph\">Double-entry bookkeeping is a fundamental principle in accounting. <strong>Two entries are made for each business transaction<\/strong>: one in debit and one in credit. This method ensures the <strong>accuracy of financial data<\/strong> and guarantees that a company&#8217;s balance sheet is always balanced. <\/p>\n\n<p class=\"wp-block-paragraph\">For example, a company buys office supplies worth EUR 100 on account. In this case, the office supplies are posted as an expense in the debit side of the expense account because they increase the value of the company&#8217;s resources. At the same time, an entry is made to the credit side of the liability account, which represents the company&#8217;s debt to the supplier. As a result, both the assets (due to the possession of the office supplies) and the liabilities (the debt to the supplier) increase by EUR 100.   <\/p>\n\n<h3 class=\"wp-block-heading\">Income and expenses<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Revenue<\/strong> comprises all <strong>funds<\/strong> that <strong>flow into<\/strong> the company, for example through the sale of goods or services, interest income or income from rentals.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Expenditure<\/strong>, on the other hand, refers to the <strong>money<\/strong> <strong>spent<\/strong> on goods, services, salaries or other operational requirements.  <\/p>\n\n<h3 class=\"wp-block-heading\">Costs and services<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Costs<\/strong> arise from the <strong>consumption of resources<\/strong> or services for the creation of products or the provision of services. They include material costs, personnel costs and other expenses. <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Services<\/strong>, on the other hand, refer to the <strong>value of the goods and services produced<\/strong> by a company. This can refer to the sales revenue, but also to services provided internally that are not sold directly. <\/p>\n\n<h3 class=\"wp-block-heading\">Income and expenses<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Income<\/strong> refers to all <strong>value inflows<\/strong> into a company within an <strong>accounting period<\/strong>. It arises from the sale of products or services, rental income or interest income.   <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Expenses<\/strong>, on the other hand, include all <strong>outflows of value<\/strong> that were necessary to generate income, such as material costs, wages, depreciation and rental costs.  <\/p>\n\n<p class=\"wp-block-paragraph\">Income and expenses are included in a company&#8217;s income statement.<\/p>\n\n<h3 class=\"wp-block-heading\">Profit and loss<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Profit<\/strong> arises when the income from the sale of products or services is higher than the expenses incurred, including all expenses. <strong>A loss<\/strong>, on the other hand, occurs when expenses exceed income.  <\/p>\n\n<h3 class=\"wp-block-heading\">Liquidity and cash flow<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Liquidity<\/strong> refers to a company&#8217;s ability to meet its <strong>short-term financial obligations<\/strong>: Paying suppliers, paying salaries and covering other ongoing expenses. It is a measure of how quickly assets can be converted into cash to meet such obligations. <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Cash flow<\/strong> is a key concept for <strong>assessing liquidity<\/strong>. It shows the actual movement of money in a company &#8211; i.e. the <strong>difference between incoming and outgoing cash flows<\/strong> within a certain period of time. There are three main types of cash flow:  <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Operating cash flow<\/strong>: Cash flow resulting from normal business activities, such as the sale of goods and services.<\/li>\n\n\n\n<li><strong>Investment cash flow<\/strong>: Includes cash flows from the purchase or sale of fixed assets such as machinery or buildings.<\/li>\n\n\n\n<li><strong>Financing cash flow<\/strong>: Cash flows associated with the raising and repayment of capital, including dividend payments and borrowings.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">A positive cash flow shows that a company is earning more money than it is spending, which is a sign of financial health.<\/p>\n\n<h3 class=\"wp-block-heading\">Assets and liabilities<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Assets<\/strong> represent the <strong>assets<\/strong> of a company, i.e. everything that the company owns or is entitled to. They include tangible assets such as buildings, machinery and inventories as well as intangible assets such as patents and trademark rights. Assets are further divided into current assets, which can be converted into cash within one year (such as inventories or receivables), and non-current assets, which are used over the longer term (such as land and buildings).  <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Liabilities<\/strong> show what obligations the company has, i.e. everything it owes to others. These include current liabilities, such as supplier credits, which must be settled within one year, and non-current liabilities, such as loans, which are repaid over a longer period of time. Equity is also listed under liabilities and represents the value due to the owners of the company after all <strong>liabilities<\/strong> have been deducted.  <\/p>\n\n<p class=\"wp-block-paragraph\">The balance sheet of a corporation consists of assets and liabilities; both areas must be balanced. This principle reflects the fact that all of a company&#8217;s resources (assets) must be financed by debt (debt-financed liabilities) and the property of the shareholders or owners (equity). <\/p>\n\n<h3 class=\"wp-block-heading\">Accounts receivable and accounts payable<\/h3>\n\n<p class=\"wp-block-paragraph\"><strong>Debtors<\/strong> are <strong>customers<\/strong> to whom a company has sold goods or services on credit and who still have outstanding payments to make. In the balance sheet, debtors are carried as part of current assets, as they are expected to generate cash within a financial year when customers pay their invoices. Debtors therefore represent <strong>receivables<\/strong>: Money due to the company.  <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Creditors<\/strong> are <strong>suppliers<\/strong> or service providers to whom a company owes money because it has received goods or services on account. Creditors are listed under current <strong>liabilities<\/strong> in the balance sheet, as they usually have to be settled within one year. They represent a company&#8217;s financial obligations to its suppliers.  <\/p>\n\n<h2 class=\"wp-block-heading\">What is the difference between accounting, bookkeeping and controlling?<\/h2>\n\n<p class=\"wp-block-paragraph\">Bookkeeping (or accounting) and controlling are part of accounting.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Accounting<\/strong> refers to the entire system of recording, processing and analyzing a company&#8217;s financial information.<\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Accounting<\/strong> deals specifically with the systematic recording of all financial transactions of a company. It prepares the annual financial statements and ensures compliance with legal regulations. <\/p>\n\n<p class=\"wp-block-paragraph\"><strong>Controlling<\/strong> supports management in steering the company by monitoring operational processes and planning. It is future-oriented and focuses on optimizing company performance. <\/p>\n\n<h3 class=\"wp-block-heading\">Interesting facts from the blog<\/h3>\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.applus-erp.de\/wissen\/erp-technologie\/blog-besser-entscheiden-dank-erp-nutzen-sie-das-volle-potenzial-ihrer-daten\/\">How to use your ERP data to make better decisions  <\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.applus-erp.de\/wissen\/prozessoptimierung\/blog-erp-buchhaltung-finanzwesen\/\">The most important functions of an ERP system for finance and accounting<\/a><\/li>\n<\/ul>\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"113478\" class=\"elementor elementor-113478 elementor-23433\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\">\n\t\t\t<div class=\"elementor-element elementor-element-7f7ddec e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"7f7ddec\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-00fb37a elementor-grid-1 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-widget elementor-widget-loop-grid\" data-id=\"00fb37a\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;template_id&quot;:112968,&quot;columns&quot;:1,&quot;_skin&quot;:&quot;post&quot;,&quot;columns_tablet&quot;:&quot;2&quot;,&quot;columns_mobile&quot;:&quot;1&quot;,&quot;edit_handle_selector&quot;:&quot;[data-elementor-type=\\&quot;loop-item\\&quot;]&quot;,&quot;row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"loop-grid.post\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-loop-container elementor-grid\" role=\"list\">\n\t\t\t\t<div data-elementor-type=\"loop-item\" data-elementor-id=\"112968\" class=\"elementor elementor-112968 elementor-63106 elementor-63106 e-loop-item e-loop-item-115560 post-115560 whitepaper type-whitepaper status-publish has-post-thumbnail hentry whitepaper_categories-digital-transformation-in-small-and-mid-sized-enterprises content_category-corporate-development\" wpc-filter-elementor-widget=\"1\" data-elementor-post-type=\"elementor_library\" data-custom-edit-handle=\"1\">\n\t\t\t<div class=\"elementor-element elementor-element-71faf02 e-ecs-flex e-flex e-con-boxed e-con e-parent\" data-id=\"71faf02\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2bc2467 elementor-widget elementor-widget-image\" data-id=\"2bc2467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-image\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" width=\"1210\" height=\"1511\" src=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png\" class=\"attachment-full size-full wp-image-106849\" alt=\"Digital transformation in SMEs | Whitepaper\" srcset=\"https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation.png 1210w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-240x300.png 240w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-820x1024.png 820w, https:\/\/www.applus-erp.de\/wp-content\/uploads\/2025\/08\/preview-ipad-whitepaper-digitale-transformation-768x959.png 768w\" sizes=\"auto, (max-width: 1210px) 100vw, 1210px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7876078 e-con-full e-ecs-flex e-flex e-con e-parent\" data-id=\"7876078\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;ecs_container_type&quot;:&quot;flex&quot;}\">\n\t\t\t\t<div data-dce-title-color=\"#54595F\" class=\"elementor-element elementor-element-180f467 elementor-widget elementor-widget-heading\" data-id=\"180f467\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<p class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-title\">Free Whitepaper<\/a><\/p>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1c48798 elementor-widget elementor-widget-text-editor\" data-id=\"1c48798\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tFrom tool to basis for success: How your ERP becomes the engine of your digital strategy.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div data-dce-background-color=\"rgba(2, 1, 1, 0)\" class=\"elementor-element elementor-element-5a57b9a elementor-widget__width-auto res sec-link  elementor-widget elementor-widget-button\" data-id=\"5a57b9a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.applus-erp.de\/en\/knowledge\/corporate-development\/whitepaper-digital-transformation-in-medium-sized-enterprises\/\" id=\"wp-cta-button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Request now for free<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n\n<div class=\"wp-block-custom-faq-accordion\"><div class=\"faqab\"><h2 class=\"faqab-title\">FAQ on accounting<\/h2><div class=\"faqab-accordion\"><div class=\"faqab-item\"><details open=\"\"><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">What is accounting?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>Accounting refers to the business management system for recording, monitoring and evaluating all financial transactions in a company. It is used both for internal management via key figures and for external reporting to stakeholders. <br><\/div><\/div><\/details><\/div><div class=\"faqab-item\"><details><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">What are the main areas of accounting?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>Accounting includes, in particular, financial accounting (recording business transactions), cost and performance accounting (analysis and management of operating costs and services), controlling (provision of information for management purposes) and the preparation of annual financial statements and reporting.<br><\/div><\/div><\/details><\/div><div class=\"faqab-item\"><details><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">Why is finance and accounting important for companies?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>Because finance and accounting create transparency regarding income, expenditure, assets and liabilities and thus reflect the economic situation of a company. It enables well-founded decisions to be made, fulfills legal requirements and contributes to the stability and management of the company. <br><\/div><\/div><\/details><\/div><div class=\"faqab-item\"><details><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">How is accounting related to an ERP system?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>A comprehensive ERP system integrates finance and accounting by providing centralized data on postings, cost centers, orders, inventories and payments. This integration makes it possible to evaluate financial and performance data in real time and support the management of the company with up-to-date information. <br><\/div><\/div><\/details><\/div><div class=\"faqab-item\"><details><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">What are the objectives of finance and accounting?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>The objectives include correct and complete accounting, the timely preparation of financial reports, the clarification of the causes of deviations compared to target figures and the optimization of the use of resources and financing &#8211; all with the aim of securing the company&#8217;s performance in the long term.<br><\/div><\/div><\/details><\/div><div class=\"faqab-item\"><details><summary class=\"faqab-question\"><div class=\"faqab-question-header\"><div class=\"faqab-question-text\"><h2 class=\"faqab-h4\">What are the challenges in finance and accounting?<\/h2><\/div><div class=\"faqab-question-icon\"><span class=\"faqab-icon faqab-icon-opened\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\" transform=\"rotate(180 12 12)\"><\/path><\/path><\/svg><\/span><span class=\"faqab-icon faqab-icon-closed\"><svg width=\"32\" height=\"32\" viewbox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M6 9L12 15L18 9\" stroke=\"currentColor\" stroke-width=\"5\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/path><\/svg><\/span><\/div><\/div><\/summary><div class=\"faqab-answer\"><div>Challenges arise from increasing regulatory requirements, growing data volumes, the integration of different systems, ensuring high data quality and the need to provide financial and performance information ever more quickly and accurately.<br><\/div><\/div><\/details><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Definition: What is (management) accounting? Accounting is one of the essential tasks of every company: all financially assessable processes or transactions are recorded, structured and evaluated. This allows you to maintain an overview of your financial resources and the success of your own activities. On the one hand, this information enables internal managers to plan [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":96029,"template":"","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","_ppma_block_editor_authors":""},"tags":[],"whitepaper_categories":[2067],"glossar_tags":[2151],"ppma_author":[460],"class_list":["post-111657","glossar","type-glossar","status-publish","has-post-thumbnail","hentry","whitepaper_categories-digital-transformation-in-small-and-mid-sized-enterprises","glossar_tags-rechnungswesen"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/glossar\/111657","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/media\/96029"}],"wp:attachment":[{"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/media?parent=111657"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/tags?post=111657"},{"taxonomy":"whitepaper_categories","embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/whitepaper_categories?post=111657"},{"taxonomy":"glossar_tags","embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/glossar_tags?post=111657"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.applus-erp.de\/en\/wp-json\/wp\/v2\/ppma_author?post=111657"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}