Business accounting software includes a wide range of computer applications that are designed to categorize and itemize financial holdings and transactions. Most accounting software consists of individual modules designed to help finance employees keep close tabs on specific types of accounts, including receivables, payables, billing, and others.
Features and Advantages of Accounting Software
Both personal accounting software and business accounting software have a set of so-called "core modules" that make up the backbone of the product's functionality. More sophisticated accounting software also includes "non-core modules" which are, in essence, advanced features.
Core modules include accounts payable software, accounts receivable software, sales orders, purchase orders, billing software, inventory software and general ledgers. Optional modules you might purchase if you need them include payment and collections, e-payment processing, expense accounts, payroll tracking, purchase requisition and timesheets.
Small business accounting software typically consists of all the core modules and payroll tracking features from the non-core group of functions. Ideally, you should get a product that supports a double-entry bookkeeping system, since single-entry functionality is typical only of the most basic entry-level software and may well not perform as well as you'd hoped when you actually use it. Most free accounting software only supports single-entry bookkeeping.
Mid-range business accounting software generally supports transactions made in multiple currencies as well as numerous industry-standard reporting tools and database types. The most sophisticated accounting software has so many functions that it's actually a different type of product altogether – ERP software.
Accounting software is a powerful financial tool for companies of all sizes. It promotes fiscal responsibility and makes filing taxes much easier. This saves your company money in the long run.
Popular Accounting Software Products
Microsoft's Dynamics family of products are very popular accounting software solutions for businesses, as is Intuit's QuickBooks software line. Other options include COA Solutions Ltd., CYMA Systems, iBank and Quasar Accounting. It is recommended that you take advantage of software review websites if you want the skinny on the latest products and versions. These sites offer impartial, third-party reviews that offer head-to-head comparisons of both features and functionality. If you need help narrowing down your options, they're a great place to start.