HUE AC" is the accounting system for large companies.

HUE AC is a system that handles not only financial accounting, but also payment, credit management, fixed assets, purchasing, and consolidated closing of accounts. HUE AC can be built in the cloud or on-premise, depending on your company's policies.

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What is an accounting system? Characteristics from the viewpoint of scope and sales type

To begin with, what is an accounting system? There are various products of systems used for corporate accounting operations, but they differ in the business areas they cover and in the form of sales and provision.

Scope of the system

Essential Areas

What is essential for an accounting system is to produce financial statements. No accounting system can do this. There is a category of financial accounting that focuses on the preparation of financial statements.

Since financial statements can be created with voucher entry functions and posting and tabulation functions, at a minimum, two functions, entry and inquiry, are all that is required. Since standard accounts are pre-set, financial statements can be created immediately after purchase.

In addition to the above, a system used by a large company must have functions to manage by department and segment. In addition, since the number of vouchers will be large, speed and input efficiency will be important, and since there will be more than one person in charge, a system to prevent double entry of vouchers and errors in the input and calculation of consumption tax will also be necessary. The systems that cover the same financial accounting category differ in terms of the extent to which they support these aspects of financial accounting.

Peripheral areas

Other than the financial accounting category, there are differences among accounting systems as peripheral areas. It is not common to refer to the scope of human resources or production management as an accounting system, but in many cases, accounting systems are categorized as those that manage journal entries, payment and deposit processing, and what are called auxiliary books, which occur after some front-line operations are performed.

In general, the system includes the following functions.
Management by customer, cash management, fixed asset management, purchase management, and expense management.

These are considered accounting systems because they manage journal entries, deposits and withdrawals, and by being the same system as financial accounting, accounts, departments, and workflow information can be managed and utilized in a centralized manner. Conversely, if a separate system is selected, it is necessary to check connectivity, such as whether it can output journal entries in the required patterns.

Gray area

The above description covers the scope of what is generally referred to as an accounting system. The following is the scope of difficult system selection when considering an accounting system. It is important to consider the system in conjunction with your company's situation.

Budget management:
Although there are dedicated budget management systems, many companies prefer an integrated system when considering an accounting system, since it is often an area that is highly related to actual results (financial figures) and requires double maintenance with the accounting system.


Therefore, when considering an accounting system, many companies prefer to use a system that is integrated with the accounting system . When considering an accounting system, many companies prefer to use the same system or seamless integration.

Tax and disclosure management:
This is another highly specialized area in which there are often separate personnel in charge, but due to the nature of the output, few companies prefer the same system when considering an accounting system.

Receivables and payables management:
This area manages the balance of receivables and payables and their details for each client. Although its functions are categorized as financial accounting, such as payment cancellation and credit management, it is strongly connected to sales management and procurement management systems, so there are many companies with multiple businesses that cannot manage them centrally.

Management Accounting:
This is an area that is often on the agenda along with budget management, whether it is done with BI tools or on the accounting system side. It is more important to work backwards from the point of how much non-financial information is to be input on the accounting system side and who wants to see the input information and in what output, rather than the point of how graphical and wonderful analysis can be performed.

Type of sales

There are various types of accounting systems, and they can be sold either directly or through partners.

Direct sales are those in which the vendor who developed the product sells directly to the customer, allowing the vendor to have direct contact with the customer. This allows the vendor to have a direct contact with the customer , so that the vendor can reflect the customer's requests, provide products that better match the customer's needs, and provide prompt support in response to inquiries.

Partner sales, on the other hand, is a form in which a partner company such as a SIer sells another company's products. Although partner companies cannot directly reflect customer requests in product development, they often perform add-on development and maintenance. Compared to direct sales, the speed of inquiries and product information dissemination may be somewhat inferior. Recently, laws such as the Electronic Bookkeeping Act are frequently revised, so it is necessary to confirm whether there is sufficient information and support to deal with such legal revisions.

Form of provision

On-premise type

For accounting systems provided on-premise, users prepare servers, communication lines, software, etc. in their own facilities or data centers, build the system, and operate it on their own.

Cloud-based

Accounting systems provided in a cloud computing format are one of the cloud services offered through cloud computing. Vendor-managed cloud services are available, and accounting systems and applications can be easily accessed through the network.

Although cloud-based accounting systems have an advanced impression and are talked about for their various advantages, they are often preceded by an image that conveys non-essential benefits. If you are wondering what the advantages of using a cloud-based accounting system are, please refer to another article that explains them.

Click here for more information: Should you really go with a cloud-based accounting system? A thorough examination of the most commonly asked benefits!

Points on how to choose an accounting system that fits your company's needs

There are many different types of accounting systems and numerous products and services available, but what criteria should you use to select the best one for your company?

Standardization of operations or add-ons to follow the current system?

Generally, systems that cannot be add-on are inexpensive and require standardization of operations.

Whilesystems that can be add-ontend to have add-on costs that are higher than the cost of the system itself , they can take into account all the voices of the field users as long as they are costly.

A system that does not allow add-ons has the potential to improve business efficiency to a greater extent than the current system, but it requires a unified will as a project. With an add-on system, the current system is followed, so only the objectives of the project are achieved, rather than overall efficiency.

Both have their advantages and disadvantages, and there is no right answer, but one point to consider is that add-ons may incur costs for future legal revisions. By conducting a rough estimate from a longer-term perspective, such as a tally of past upgrade costs, you can select a system that best suits your company.

Does the system cover the functions to achieve the purpose of introduction?

The implementation or replacement of an accounting system is often reported and managed as an internal project.

The purpose of replacing the accounting system needs to be stated in the project proposal, and this becomes the project's implementation objective. Of course, we cannot afford to lose operational efficiency compared to the current system. Therefore, the project must guarantee the current operations, and there must be additional project objectives such as a paperless system.

However, if a system is selected with only the project objective, such as paperless, in mind, the current business cannot be secured, and the project may end up being frozen due to unplanned costs. Therefore, it is important to select a system after carefully picking out the "requirements" to tell the vendor whether or not the accounting system can guarantee the current business operations.

If the system is to be used for a long period of time, will support expiration increase operating costs?

Accounting systems are not meant to be replaced frequently and are meant to be used over the long term from the standpoint of continuity. Therefore, ongoing maintenance is required to address external factors such as remote work and intermittent legal changes, as well as internal factors such as the addition of new subsidiaries and enhanced management accounting.

In addition to this, the system company may periodically renew the series. This is not a version upgrade within a series, but rather a change in the series so that support for the old series is no longer available. In such cases, users are forced to migrate to the new series. One of the points to check is whether the transition is smooth, whether there are no additional costs, and the cycle of the series.

From a long-term perspective, it is also necessary to check whether the system is capable of continuously responding to external and internal factors, and whether the vendor has a proven track record of doing so.

Typical benefits of implementing an accounting system

Although the accounting system is selected based on these points, it is necessary to clarify the "purpose and merits" of the system when actually applying for the introduction of the system and obtaining a budget. Here, we will introduce some of the most frequently used benefits of implementing an accounting system.

Improve efficiency of accounting operations

The introduction of an accounting system provides two advantages: "automation of manual work by the system" and "improvement of operational efficiency by organizing work through the project.

Automation of manual work by the system includes automation by OCR for more efficient inputting, automation of regular payments tied to contracts , automatic payment erasure, and the creation of templates for various output forms.

Organizing operations through the project can simplify operations byidentifying unnecessary tasks while organizing areas that may be considered double entry or double maintenance.

In this way, an accounting system can improve the efficiency of accounting operations.

Elimination of human resources

By expanding the use of the system, manual work such as Excel can be reduced; Excel can easily become a genus, with macros that only the creator can understand, and furthermore, it is likely to become a black box, making it difficult to maintain. Examples include allocation, budgeting, and management accounting.

Eliminating the need for human resources is a lower priority for implementing an accounting system. As mentioned earlier, the priority is to ensure current business operations, and this is to be expected. However, if a system is to be implemented, it should also be able to eliminate the problem of human resources.

So, how can we solve the low-priority geriatric area? The answer is to continuously expand the scope of the system implementation without trying to do it within the implementation project. If everything is implemented in a short period of time, even if it is possible, it will cause distortion in various areas. You can solve the problem by considering a system that allows you to continue improving your business from a long-term perspective without spending a lot of money.

Improvement of accounting operations, such as data analysis operations

It may not be the case that you will suddenly be able to close your accounts faster after implementing an accounting system. In the initial stages, there may be areas that are not being utilized effectively or that are a matter of familiarity, but the system will gradually become more efficient.

So, what is the goal beyond streamlined operations? It will be possible to practice what accounting originally wanted to do, such as analytical work using financial and budgetary figures.

If you are able to consider what you might do beyond implementing an accounting system in this way, you may be able to decide what cut-off segments should be prepared at the stage of implementing the accounting system, and on which front those segments can be entered or supplemented.

Easier to keep up with changes in accounting systems, tax system revisions, and trends

The advantage of an accounting system is that it can respond to frequent changes in laws and accounting tax systems without a huge amount of manual work by changing or updating some of the system settings.

For example, in response to the Electronic Bookkeeping Law, there are areas where paper-based operations are no longer possible. It may be possible to handle this area manually according to the IRS manual, but it will be difficult if the volume is too large. Similarly, it is not impossible to comply with IFRS (International Financial Reporting Standards) by manually managing multiple books of accounts, but it is difficult when considering the output of statements of comprehensive income.

The advantage of implementing an accounting system is that it is possible to handle such matters without having to cover them manually. The invoice system will continue to be introduced in the future, so the main point of an accounting system is to be able to smoothly respond to such legal changes.

We also have other articles related to compliance with legal revisions such as the Electronic Bookkeeping Law.
If you are interested, please refer to this article.

Select an accounting system that can achieve your company's objectives based on an understanding of your company's characteristics and business operations.

There are various advantages to using an accounting system, such as improving operational efficiency and continuously complying with changes in the law. It is important to select the most appropriate accounting system based on your company's characteristics and business operations so that you can maximize those benefits.

We also offer the "HUE AC " accounting system.

The accounting system "HUE AC" continues to reflect the requests and requirements of companies in various industries and business categories in its standard functions, and has been adopted by a number of major companies for its high business coverage. If you are interested in our products, please visit our product introduction page.

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• Should You Really Use the Cloud for Your Accounting System? A thorough examination of the benefits we often hear about!

HUE AC" is the accounting system for large companies.

HUE AC is a system that handles not only financial accounting, but also payment, credit management, fixed assets, purchasing, and consolidated closing of accounts. HUE AC can be built in the cloud or on-premise, depending on your company's policies.

See More