Definition: Accounting software

An accounting program supports the user in the preparation of monthly accounting. The scope of the bookkeeping depends on the one hand on the chosen legal form and on the other hand on the exceeding of certain limits. For a GmbH, the accounting obligation arises, for example, from the Commercial Code (HGB). It is also the responsibility of the company’s managing director to draw up a balance sheet at the end of the year.

Other accounting obligations are determined by the tax code (AO), which is relevant for tax law. Regardless of the legal form, commercial companies must prepare monthly bookkeeping according to ยง 141 AO if they achieve sales of more than 600,000 euros in the calendar year or can generate a profit of 60,000 euros. If these limits are not reached, the company is a small business.

For small businesses and freelancers, there is no obligation to create legally compliant bookkeeping, neither due to the legal form nor the law. You determine your tax profit by comparing operating income and operating expenses.

These entrepreneurs can make things easier for themselves if they use an accounting program.

The advantages of an accounting software

The advantages of …

CPA Exam Overview

The CPA exam includes 324 multiple-choice questions, 20 task-based simulation questions, and three writing sections. These are divided into four main areas: Audit and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC). Each part is taken individually, and candidates can choose the order in which they are taken. Once a candidate has passed their first section of the exam, the remaining three must be passed within 18 months. The American Institute of CPAs (AICPA) administers and rates the test and rates each part on a scale of 0 to 99. You must have a minimum of 75 points to pass each section. Multiple choice questions count for 70% of the total score, Simulations are 20%, and written communication is 10% of the final result. Each question is weighted according to the level of difficulty so that the multiple-choice questions and going through the simulations and written parts result in an incorrect score. The total time for the test is 14 hours.

Financial accounting and reporting

The FAR section tests knowledge and understanding of the accounting framework used by corporations, non-profits, and government agencies. It contains 90 multiple-choice questions and seven …