maintains the chart of accounts and stores company transactions including assets, liabilities, equity, revenues, and expenses. As the core of an accounting system, the GL provides a complete record of financial transactions over the life of a company.
Accounts Payable are liabilities for the purchase of goods and services to a creditor, provided in advance of payment. This AP module manages a fully featured electronic approval and utilizes comprehensive paperless invoicing, creating a robust and automated workflow.
Accounts Receivable are assets on outstanding credit for the sale of goods or services, as well as the collection of those funds. With substantial yet streamlined invoice entry, this AR module operates with extensive reporting and credit invoicing, congruent with other applications.
Cash Management, or Bank Book, is the collection of cash account transactions for the reconciliation of balances. Bank book uses a three-way reconciliation to provide an accurate view of cash on hand. Digital files of canceled items from the bank are automatically reconciled with account balances in the general ledger.
Bank reconciliation is the process of matching balances in a cash account to the corresponding information in a bank statement. In the past, the comparison was done manually. Today, companies use a digital file provided by their bank to perform automatic reconciliation in their accounting system.
A budget is, once prepared, a quantifiable strategy for delegating future financial activities. The summarization of these estimates is called an income statement and balance sheet.
Consolidation is the combination, or roll up, of multiple entities into a single entity for reporting purposes. In accounting, consolidated reporting presents the parent company and its subsidiaries as one in order to measure the financial status of the entire organization.
Dimensions allows the creation of additional values on the fly without having to create corresponding General Ledger accounts. Dimensional accounting delivers real-time visibility into a company's performance using dashboards and financial reports.
Financial reports such as balance sheets, income statements, and cash flow statements, reflect the financial status of an organization. Reports are run for a specific date range and generated based on the information stored in a company's financial management software.
Intercompany accounting, a.k.a reconciliations, is the process of balancing the accounts between two entities of the same parent company to bring the balances to zero in the general ledger. The entities may be in different locations and have different products or services.
Multiple entity accounting, a.k.a. multi-company accounting, processes the expenses and revenue of individual companies that are owned by a parent company. Financial statements for each company are consolidated, or rolled up, to produce a single financial report for the ogranization. Multi-entity accounting software provides seamless financial and statistical reporting by cost center, department, location, region, division, or any business unit that the user defines. Enterprise level multi-entity accounting systems allow an unlimited number of users to access the software simultaneously.
The term Paperless Office refers to using digital or electronic files instead of paper documents. Eliminating paper reduces company expenses for printing, filing, and storing documents. Accounting systems that have integrated paperless office functionality let users drill-down to invoice images and support documents stored in the system.
Accounting Software Related Terms and Defintions
Application Programming Interface (API) describes the routines, protocols, and tools that software applications use to communicate with each other. The API is the messenger that delivers a request from SBS software to your proprietary invoicing software and returns the requested data back to SBS. The function of an API is to act as a window between individual software programs allowing them to interact without requiring either developer to share their entire code. Common types of Web APIs are Simple Object Access Protocol (SOAP), Remote Procedure Call (RPC), and Representational State Transfer (REST).
Cloud hosting and SaaS
Cloud hosting lets users store and access their software applications via the Internet rather than from an on-premise server or individual computer hard drive. SBS' cloud accounting software is hosted on a secure, private server that allows customers to run their applications and access data from anywhere with an Internet connection. This approach is also known as providing Software as a Service (SaaS) because it eliminates the need for on-premise servers, hardware support, and on-site backups.