Professional Accounting and Compliance
Based on the Open Source ERP System Odoo:
ITISeasy.business
Think about your accounting for a moment.
Prefer not to? But you should! Why? Because smart decisions based on meaningful key figures have already led many entrepreneurs to success.
And to make that possible for you too, we’ve placed special focus on this area. See for yourself!
With the new ITISeasy.business you trust the best ERP system, to manage these streams automatically and almost incidentally within the framework of normal business operations. The experience of over 30 years in this software field (formerly an Odoo Gold Partner) has been deeply incorporated into the design of the best accounting software and the natural sequences and processes of the product ITISeasy.business. This enables your employees and yourself to quickly gain an overview, increase productivity with minimal effort, and allow the company to better recap the rewards of your work. Based on the open source ERP solution Odoo, our experiences and innovative employees have created some decisive customizations and extensions.
Professional Accounting and Compliance
Innovations in accounting
Excerpt of functions
Complete Financial accounting according to the usual German standard
with SKR03 and SKR04 as a basis, but also any other Chart of accounts can be mapped individually.
Correct taxation of sales and costs
for both domestic transactions and foreign EU, non-European multi-currency business, and Triangle Deals with direct deliveries can be mapped.
Adaptability of the tax situation to the current legislation
If necessary, also very quickly by so-called "Temporary
Tax allocation
“ as recently necessary in the Corona pandemic.
Representation of recurring processes as templates
to quickly generate account assignments relevant to posting and then execute them as a collective posting.
Collective invoice runs in conjunction with the contract management
allow the triggering of key date-related automatisms for regular, contract-compliant billing.
Complete built-in budgeting option
against chart of accounts, set up pessimistic and optimistic buget as simulation types.
Built-in DATEV export AND import
thus a perfect data exchange basis for the cooperation with most German tax advisors.
Sophisticated Asset Accounting with settable depreciation options
and the automatic proposal for posting depreciation as well as an asset ledger.
New clarity via the chart of accounts
with quick navigation and subtotals for groupable account groups, allows a very quick presentation of the respective areas of the balance sheet and income statement.
SEPA Direct Debit and Online Banking Integration
for the automatable mapping of payment runs (depending on the respective credit institution)
Factoring connection
for mapping assignments and intermediate financing levels.
Complete Dunning
with collective transactions and individually displayable transactions for payment reminders to defaulting debtors.
New advance return for sales tax
by means of the classes and forms required by law, adaptable to the respective change of the financial authorities.
Complete built-in consolidation process of bank import - MT-940 compliant,
open accounts receivable and payable invoices. Classic reporting based on PDF reports enable the typical evaluations from the summary balance list to the trial balance and short-term income statement.
Sophisticated and user-customizable financial evaluation area for fast, ongoing display of important key figures of the entire company, including order volume, current receivables grouped by customer, trade payables and liquidity based on the maintained financial accounting.
Further interfaces to various downstream financial systems
(group structures, consolidation clients and franchise concepts) can be mapped easily.
What is important in a financial accounting system integrated in an ERP System?
When selecting a system, you should first ensure that your regular operations automatically maintain financial accounting in the background. This will save a lot of work, and you will quickly see that even the process of ordering and purchasing defines the relevant bookings and reservations. With invoicing, these bookings are pre-recorded, and they will be visible in the profit and loss statement area as soon as they are booked.
The various accounts are part of the chart of accounts, likely based on a possibly expanded chart of accounts framework, with the amounts recorded that you have generated through invoicing. In the case of material management, quantities and valuations are also accurately recorded, ensuring that books and inventory lists are automatically maintained here as well.
Standardization, process automation, and division of labor among different functions within the company are the main concepts of the integrated business solution concept. While the term ERP is often used in this context, ITISeasy.business goes much further. Undoubtedly, an accounting program will work separately, but it's the synergy of all components that will rapidly increase the value of the entire system for your company as you desire.
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The Basics of Accounting in Germany
In Germany, there is a whole series of laws and regulations that form the basis of a company's accounting practices. Among these are the principles of proper accounting (GoB) and extended data access (GoBD, actually "Principles for the proper management and retention of books, records, and documents in electronic form, as well as for data access"), issued by the Federal Ministry of Finance and can be downloaded
from here.
These fundamentals are governed by several laws, including:
Income Tax Act
Value Added Tax Act
Tax code
Limited Liability Company Act
Stock Corporation Act
Ultimately, what is relevant is that every entrepreneur is obligated to chronologically, logically, and comprehensively record all financial transactions (known as business transactions) in an accounting system, ensuring that the accounting remains transparent and comprehensible to third parties, such as auditors. Additionally, there is an obligation to provide supporting documents for all entries to ensure the authenticity of the records.
Depending on the size of the company, primarily determined by the financial figures of a fiscal year, as well as the legal structure of the company, there are various levels of complexity in the details of record-keeping, often assisted by tax advisors. Regardless, it is crucial for you to ensure that everything is done correctly in the end. A well-configured system greatly aids in this process through predefined business workflows.
How the end-of-the year closing in financial accounting works in ITISeasy.business
In the financial accounting within the ERP system, at the end of a fiscal year, a so-called Annual financial statements is prepared. ITISeasy.business supports you in this process through several systems for proper allocation between the current and the next fiscal year, resulting in the income statement and forming the basis for the annual tax return.
At the outset, every accountant should ensure that the ongoing accounting is fully recorded and that all relevant financial transactions are reflected in the chart of accounts. For the purpose of valuing inventory, an inventory may need to be conducted as of the reporting date, unless perpetual inventory already provides this value consistently.
Typically, depreciation entries are made at the end of the fiscal year and evaluated. If depreciation entries have been made throughout the year, this needs to be taken into account. The asset report is derived from this process. Subsequently, accruals and carryovers are to be recorded and posted. A separate journal is suitable for this purpose, which is already indicated by its name, revealing the types of transactions involved.
For foreign currency transactions, a revaluation of exchange calculations must now take place. The decisive factor is the exchange cash-mid rate set on the reporting date, which is relevant for the tax-based balance sheet.
The subsequent verification of inventory postings is typically carried out in collaboration with a tax advisor. If the ongoing transfer to their DATEV system has not been taking place, now is the right time to transfer the accounts and their movements.
Once the verification and corrective entries have been made, the periods can be closed. This freezes the accounting for the period under review.
Why is a Datev Interface important?
In Germany, most tax advisors work with Datev. This is because this program is issued by a cooperative association to which tax advisors belong. Datev is specifically tailored for the quick recording of documents, known as posting, and the subsequent work with business figures and reports. Another advantage: Datev receives continuous updates for this area based on the current legal situation and is, so to speak, a leading authority on how specific financial accounting processes should be implemented.
However, where it excels, there are also limitations: Datev is not suitable for fully representing business operations including materials management, production, service administration, and human resources, but mainly focuses on financial bookkeeping. The relatively new "Unternehmen Online" also falls into this category.
Odoo has a basic Datev interface only in the Enterprise version, which transfers data from Odoo to Datev. The other way around, namely the import of data often modified by the tax advisor, such as account assignments or closing entries, is equally important.
With ITISeasy.business you receive the bidirectional Datev-Interface as part of the package. In addition to transferring accounts, entries, posting texts, contra accounts, and their balances, you can also quickly and easily generate compliant VAT returns.
You are interested in the ITISeasy.business datev module?
Contact us for support and consulting.
Added value for your company: What is the benefit of asset accounting?
Firstly, it's important to note that asset accounting is not an option but a requirement for many companies. Any business obligated to maintain double-entry bookkeeping and thus create a balance sheet at the end of the fiscal year must also consider fixed assets, which are long-term assets subject to depreciation.
This means that the initial acquisition cost can be gradually expensed against the operating result over time to reflect the decrease in value. Fixed assets are classified into different categories by the legislator, each with its defined depreciation period. However, since these regulations can change, consistent updates are necessary, and ITISeasy.business supports you in this regard.
These operational acquisitions are documented as assets in
Asset Accounting
. A new acquisition with a cost exceeding the threshold for a low-value asset is recorded in this asset ledger. On the other hand, selling a fixed asset leads to a positive increase in operating results and simultaneously removes the asset from the books.
At certain intervals, these assets are revalued, and any difference between the old and new values is depreciated. In other words, the decrease in value is accounted for in the balance sheet, reducing the reported value of the assets and impacting the overall financial results.
Handle your Assets Properly
Depreciating new and used vehicles with ITISeasy.business
An asset ledger, as created in ITISeasy.business or odoo, contains the various Plant categories as separate sections: For example, all vehicles are recorded in the "Fleet" category and currently (as of 2021) depreciated over 6 years for new vehicles, while for used vehicles, depreciation is adjusted based on the difference between the vehicle's first registration date and the acquisition date of the used vehicle. and the acquisition date of the used vehicle.
ITISeasy.business is legally compliant,
provided it is set up correctly.
The whole matter is legally regulated in Germany under Section 247 HGB (Commercial Code).
Equally important is §266 HGB, which defines the main categories of assets:
Intangible Assets
Internally generated industrial property rights and similar rights and values; concessions, industrial property rights, and similar rights and values acquired for a fee; also licenses for such rights and values as well as business or company values; advance payments made also fall into this category.
Tangible Assets
This includes land and comparable rights, buildings including those on third-party properties, especially technical installations, machinery, and other facilities, as well as customary operational and business equipment. Advance payments and assets under construction are also included in this category.
Financial Assets
This category includes holdings in affiliated companies, loans to affiliated companies, equity investments, loans to companies with which an equity relationship exists, securities classified as fixed assets, and other loans.
In terms of accounting, it is crucial to record the fixed assets on the correct accounts. This is done on specific reporting dates that the company can reasonably determine. The accounts themselves are typically defined in the standard chart of accounts, which ITISeasy.business also supports.
Unlike the open-source ERP odoo, ITISeasy.business provides a suitable and legally compliant report as a
Assets analysis as PDF
. This allows you to have a clear overview of your asset entries, already in a balance sheet-ready format, which can be directly included in your financial statement.
Furthermore, ITISeasy.business also assists with inventory, which should be conducted periodically over fixed assets, for example, at the end of a fiscal year. If you want to learn more about ITISeasy.business, in addition to the articles on this website, we recommend watching the videos available on our YouTube channel. Alternatively, feel free to contact us directly.
Planning instead of "management by account balance": How does budgeting work in the company?
What do you do when you look at your company's earnings? Do you use the surpluses as a precaution for tough times, reinvest in your own company, distribute them to the shareholders? In any case, you should plan how to make the money work better for your goals. And you should consider all factors, such as long-term liabilities, provisions, or risks of default in case of problems.
Because managing based on the bank account balance is a risk in itself. You don't see what happens next and you might end up spending too much or too little. With too much spending, your business can get into trouble, and with too little, you might end up paying a significant amount of taxes at the end of the year. To avoid both scenarios, there's
Budgeting
.
Budget planning in ITISeasy.business
can be done in two ways: firstly, similar to the odoo standard, you have the option to directly relate budget planning to the expenses in financial accounting. For this purpose, you determine on which general ledger account of the income statement the budgeted amount should be allocated. At the same time, you can create several different budgets (for example, optimistic and pessimistic) which are available as values for the respective general ledger account.
The ongoing bookkeeping and its entries of costs and revenues lead to ITISeasy.business comparing the previously allocated budgeting value with the balance of the general ledger account, thus outputting the current "consumed," or booked budgets and their percentage utilization compared to the planned values.
However, a certain disadvantage of this method is that this budgeting happens retrospectively and is not linked to goals, quality levels, and operational situations. In companies that primarily engage with their customers through marketing, standard marketing campaigns are a tried and tested process and a common occurrence for many businesses. Here, the "Marketing Budget Planning" module helps, allowing detailed budget planning and monitoring during execution based on campaigns, goal achievement, media, and execution progress. This module is also a specialty of ITISeasy.business - read and learn more about it here (link). If you're more interested in ITISeasy.business, please contact us to proactively guide your company through the upcoming years.
More about budget planning
When it matters to understand how result will truly come together: that's where cost accounting benefits management and departments.
Cost accounting is the art of the finance department. While "regular" financial accounting mainly focuses on presenting legal documentation and bookkeeping requirements, cost and income accounting is primarily intended for the entrepreneur and proves useful.
ITISeasy.business
supports the Cost accounting in all relevant areas when activated, but significant benefits are achieved only when one thoroughly understands the company's structure and the various costs and income categories associated with it. Unlike financial accounting, cost accounting can be more detailed and specific, yet simultaneously aggregate at a higher level to provide a clear view of business figures, company developments, and financial management of operations.
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Numbers please: How can the Management find better ways through the crisis or generate more business in good times, always having up-to-date business figures?
A system like ITISeasy.business is not an end in itself. Even though many believe that operations, administration, and planning are the main tasks of an ERP system, it's often overlooked that the results in the form of evaluations and figures are just as important as data input and management. In fact, these results are essential for making business decisions and setting strategic directions.
ITISeasy.business offers three distinct ways to gain insights into the company and all parties, individuals, and parameters contributing to its success. And of course, with a broad perspective, you can get an overall view or a comprehensive understanding of the situation with detailed drill-downs into underlying data for analyzing success or identifying problems.
The first view of the day could be the Management Dashboard: Here, important key metrics that you can configure and modify yourself are presented at a glance and are continually updated by the system. These metrics could include revenue by business segments, goal achievements, spending patterns, or employee status indicators. All these areas are available to you at a glance, enabling you to actively manage the ongoing activities.
The second view is the Analysis view of the personal
BI Dashboards
. With various perspectives based on different areas or applications, the Analysis view is deeply integrated into all aspects of ITISeasy.business. For instance, you can examine customer balances or a summary of invoices over time. This analysis will quickly reveal who contributes the most to your business. Conversely, you can also track the payments made to suppliers and service providers. Combined with ongoing expenses, this forms a significant area that requires your current attention. The great part is that these views can be instantly customized by the user, adding further details or groupings, and can be included in the personal BI dashboard. Additionally, BI reports can be excellently exported to Excel for further analysis.
The third type of reports in ITISeasy.business are PDF summaries that resemble a printed view and can also be output on paper. The advantage here is that these reports are uniform and quickly available, making them suitable for documenting processes or specific results within a given period. A classic example is the trial balance, which provides a comprehensive fiscal view of the company on a selected date. However, reports like inventory lists with valuations, tax declarations, or work time account balances are also typical applications that can be captured as PDFs.
As you can see, ITISeasy.business offers a variety of options to bring the entered data and activities back into view. Often summarized as Key Performance Indicators (KPIs) but also with the ability to drill down into details, these views provide an excellent way to steer your company.
ITISeasy.business - the best ERP System when it comes to Accounting.
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