What is primarily managed by double-entry accounting software in small companies?

Double-entry accounting software is specifically designed to manage and maintain a company's financial records by tracking all financial transactions in a standardized format. This method of accounting ensures that every entry to an account is balanced by an equal and opposite entry to a different account, which provides a complete and accurate picture of the company’s financial health.

By using double-entry accounting, small companies can generate critical financial statements, such as the balance sheet and income statement, which are essential for making informed business decisions, tracking profitability, and fulfilling compliance requirements. Maintaining precise financial records helps businesses manage cash flow, prepare for audits, and make informed strategic choices based on accurate data.

While inventory tracking, employee scheduling, and production planning are important aspects of a business's operations, they do not fall under the primary focus of double-entry accounting systems. Instead, these functions are typically managed through other specialized software solutions designed to handle operational aspects rather than financial accounting.