Accounting is the field that covers processes such as recording, reporting, and examining all financial transactions of businesses in accordance with laws and relevant regulations. It should be stated that accounting is not limited only to income and expense tracking. All processes, from tax calculations to official declarations and the preparation of financial statements, fall within the scope of accounting. Accounting includes the procedures that must be carried out within the framework of the Tax Procedure Law, Turkish Commercial Code, and relevant legislation.
In general, the duties of accounting can be listed as follows:
Keeping the journal ledger and inventory ledger
Calculating taxes such as VAT, income tax, and corporate tax
Preparing declarations and submitting them to the relevant institutions
Preparing official financial reports such as balance sheets and income statements
What Is Pre-Accounting?
Pre-accounting forms the infrastructure of accounting and covers daily financial transactions. It should be stated that these are processes carried out within the business itself and that pre-accounting transactions cover the stages before official ledger records. The main goal of pre-accounting is to keep companies’ and businesses’ cash flow, receivables and payables balance, and daily financial situation under control.
The following can be given as examples of transactions included in pre-accounting:
Issuing invoices and tracking invoices
Current account tracking
Recording cash and bank transactions
Tracking stock inflows and outflows
Check and promissory note transactions
Daily income-expense control
Main Differences Between Accounting and Pre-Accounting
Take a look at the list below to see the differences between accounting and pre-accounting more clearly.
Accounting covers the entire financial structure of businesses and should also be considered an official process. Pre-accounting, on the other hand, only covers daily transactions and has a narrower scope compared to accounting.
Accounting transactions are subject to laws and regulations. Pre-accounting transactions, however, are not directly considered official ledger records, but they form the basis of accounting transactions.
Accounting transactions are usually carried out by financial advisors or certified accountants. Pre-accounting, on the other hand, covers transactions carried out by the personnel within the business itself.
Accounting produces official reports such as balance sheets and income statements. Pre-accounting reports are different; internal company reports are prepared, including information such as the business’s cash position and receivables-payables balance.
Lastly, accounting and pre-accounting also differ in terms of purpose. While accounting aims for legal compliance and financial reporting, pre-accounting focuses on operational control.
What Is the Importance of Digital Pre-Accounting Programs?
At this point, we also need to mention digital pre-accounting programs. Because for businesses, the way to make all these processes much easier is to use online pre-accounting programs. It becomes possible to provide many conveniences within the business, from automatically recording transactions to minimizing human error in data entry. In addition, digital pre-accounting programs allow instant access to reports and provide a significant opportunity to save time. It should also not be forgotten that they enable e-invoice and e-archive processes to be carried out in an integrated manner.
Advantage in Pre-Accounting and Accounting Processes with Key Online
Businesses use the Key Online Pre-Accounting Program to make their pre-accounting processes easier and to access their archives more conveniently in this area. It should also be noted that this cloud-based software makes it possible to strengthen the accounting infrastructure. Key Online Pre-Accounting Program also receives full marks from businesses thanks to its user-friendly interface. It is not necessary to be experienced in using such software or to have advanced technical knowledge.
Take a look at the advantages offered by Key Online Pre-Accounting Program!
With e-invoice and e-archive integration, invoice processes can be managed from a single panel.
It enables current account, cash, bank, and stock tracking to be carried out instantly and regularly.
It is very easy to share pre-accounting data with the accountant.
Thanks to its cloud-based structure, it offers secure access from anywhere.
It includes automatic calculation and reporting features that reduce the risk of errors.
You can click on the Key Online website to access all other details about this special software.
