This topic covers some of the more frequently asked questions that come about when using BOS Accounting.

Find answers to the following questions below:

1. Is BOS accredited accounting software?

2. Is BOS different to other accounting packages?

3. Is BOS GAAP compliant?

1. Is BOS accredited accounting software?

The answer is, no. But, neither is any other accounting software in South Africa. That's because, in South Africa, there is no central accounting body or organisation to provide such accreditation to any accounting software.

Yes, users can be trained on the specific accounting software package, and become an accredited or certified user of that software. However, there is no accounting software package that can claim to be accredited, as there is no accounting body of South Africa to accredit it.

What does that mean?

It means that there is no master go-to accounting package. The question should simply be 'Does this accounting software gather, sort and calculate the various business transactions and values into the required accounts and reports in line with the Generally Accepted Accounting Principles or GAAP?' If it does, you can assume it is a viable accounting package / module.

Looking for training on BOS Accounting or to become an accredited BOS user?

Contact us to book training.

2. Is BOS different to other accounting packages?

New software is always a learning curve. Think back on the first time you used a new, seemingly daunting package. Yet operating that package probably feels like second nature now. Learning BOS Accounting may seem slow and complex as you learn, but it wont be long before it becomes second nature. Just be patient, and stick with it.

Everything under one roof

BOS Accounting is completely integrated into BOS - it cleverly knows everything that's going on in the business. The good news for you is that you don't have to worry about forgotten invoices, unpaid suppliers or exceeded credit limits come month-end. With this powerfully integrated functionality, BOS is more than just an accounting package; it is a business operating system that covers every aspect of a business, not the least of which is accounting.

You'll find that BOS Accounting does everything - and more - that you need your accounting software to do, just a little differently.

Easy to use

BOS Accounting is designed to be intuitive and easy to use. It calculates your accounting reports and summaries instantly, handles the heavy lifting of your accounting admin, and imports banking with a few clicks of the mouse. It is probably quite different from the stand-alone accounting software you worked with before, but it won't be long until you are clicking through BOS Accounting like a pro!

Easy to learn

The business agent who installed BOS in your business will provide initial training after setup. If you feel you need more training specific to accounting after that, contact your business agent and schedule one-on-one training. They will come to your offices and personally train you until you feel more confident using BOS Accounting.

3. Is BOS GAAP compliant?

GAAP (pronounced GAP) stands for Generally Accepted Accounting Principles. It is a collection of commonly-followed accounting rules and standards for financial reporting. It is a set of standards and principles that work to improve transparency in financial statements.

GAAP specifications include definitions of concepts and principles, as well as industry-specific rules. The purpose of GAAP is to ensure that financial reporting is transparent and consistent from one organisation to another.

There is no universal GAAP standard and the specifics vary from one geographic location or industry to another. Many countries around the world have adopted the International Financial Reporting Standards (IFRS). IFRS is designed to provide a global framework for how public companies prepare and disclose their financial statements. Adopting a single set of world-wide standards simplifies accounting procedures for international countries and provides investors and auditors with a cohesive view of finances. IFRS provides general guidance for the preparation of financial statements, rather than rules for industry-specific reporting.

Compliance

GAAP must be followed when a company distributes its financial statements outside of the company. If a corporation's stock is publicly traded, the financial statements must also adhere to rules established by SARS. GAAP covers such things as revenue recognition, balance sheet item classification and outstanding share measurements. Some companies may use both GAAP and non-GAAP compliant measures when reporting financial results. GAAP regulations require that non-GAAP measures are identified in financial statements and other public disclosures, such as press releases.

Is QuickEasy BOS GAAP Compliant?

Yes, BOS is GAAP compliant, in that it provides financial statements and accounting reports based on generally accepted accounting principles.

What are the GAAP Principles?

The Business Entity Concept

The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means that the owner of a business should not place any personal assets on the business balance sheet. The balance sheet of the business must reflect the financial position of the business alone. Also, when transactions of the business are recorded, any personal expenditures of the owner are charged to the owner and are not allowed to affect the operating results of the business.

The Continuing Concern Concept

The continuing concern concept assumes that a business will continue to operate, unless it is known that such is not the case. The values of the assets belonging to a business that is alive and well are straightforward. For example, a supply of envelopes with the company's name printed on them would be valued at their cost. This would not be the case if the company were going out of business. In that case, the envelopes would be difficult to sell because the company's name is on them. When a company is going out of business, the values of the assets usually suffer because they have to be sold under unfavourable circumstances. The values of such assets often cannot be determined until they are actually sold.

The Principle of Conservatism

The principle of conservatism provides that accounting for a business should be fair and reasonable. Accountants are required in their work to make evaluations and estimates, to deliver opinions, and to select procedures. They should do so in a way that neither overstates nor understates the affairs of the business or the results of operation.

The Objectivity Principle

The objectivity principle states that accounting will be recorded on the basis of objective evidence. Objective evidence means that different people looking at the evidence will arrive at the same values for the transaction. Simply put, this means that accounting entries will be based on fact and not on personal opinion or feelings.

The source document for a transaction is almost always the best objective evidence available. The source document shows the amount agreed to by the buyer and the seller, who are usually independent and unrelated to each other.

The Time Period Concept

The time period concept provides that accounting take place over specific time periods known as fiscal periods. These fiscal periods are of equal length, and are used when measuring the financial progress of a business.

The Revenue Recognition Convention

The revenue recognition convention provides that revenue be taken into the accounts (recognized) at the time the transaction is completed. Usually, this just means recording revenue when the bill for it is sent to the customer. If it is a cash transaction, the revenue is recorded when the sale is completed and the cash received.

It is not always quite so simple. Think of the building of a large project such as a dam. It takes a construction company a number of years to complete such a project. The company does not wait until the project is entirely completed before it sends its bill. Periodically, it bills for the amount of work completed and receives payments as the work progresses. Revenue is taken into the accounts on this periodic basis.

It is important to take revenue into the accounts properly. If this is not done, the earnings statements of the company will be incorrect and the readers of the financial statement misinformed.

The Matching Principle

The matching principle is an extension of the revenue recognition convention. The matching principle states that each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn. If this is not done, the financial statements will not measure the results of operations fairly.

The Cost Principle

The value recorded in the accounts for an asset is not changed until later if the market value of the asset changes. It would take an entirely new transaction based on new objective evidence to change the original value of an asset.

There are times when the above type of objective evidence is not available. For example, a building could be received as a gift. In such a case, the transaction would be recorded at fair market value which must be determined by some independent means.

The Consistency Principle

The consistency principle requires accountants to apply the same methods and procedures from period to period. When they change a method from one period to another they must explain the change clearly on the financial statements. The readers of financial statements have the right to assume that consistency has been applied if there is no statement to the contrary.

The consistency principle prevents people from changing methods for the sole purpose of manipulating figures on the financial statements.

The Materiality Principle

The materiality principle requires accountants to use generally accepted accounting principles except when to do so would be expensive or difficult, and where it makes no real difference if the rules are ignored. If a rule is temporarily ignored, the net income of the company must not be significantly affected, nor should the reader's ability to judge the financial statements be impaired.

The Full Disclosure Principle

The full disclosure principle states that any and all information that affects the full understanding of a company's financial statements must be include with the financial statements. Some items may not affect the ledger accounts directly. These would be included in the form of accompanying notes. Examples of such items are outstanding lawsuits, tax disputes, and company takeovers.