ACCOUNTING SOFTWARE

There are many types of accounting software applications on the market today Some applications are intended to perform accounting functions for large corporate organizations Others are meant for personal use Still other applications fall somewhere in between performing functions suited to small businesses as well as those suited to the average person Available software ranges from the very simple to the very complex with much variation in price as well
Accounting software is typically composed of various modules different sections dealing with particular areas of accounting. There are many types of accounting software applications on the market today. Some applications are intended to perform accounting functions for large corporate organizations. Others are meant for personal use. Still other applications fall somewhere in between, performing functions suited to small businesses, as well as those suited to the average person. Available software ranges from the very simple to the very complex, with much variation in price as well.Accounting software can be useful in such functions as recording and processing accounts receivable and accounts payable transactions. Some software applications can be used in payroll processing, the documentation of tax transactions, and the creation of related reports. Accounting software can also be used in billing clients and customers and debt collection. Some accounting programs even provide for timesheet record keeping, useful for professionals who need to keep track of the hours they work.Accounting software that is designed for home use is often referred to as personal accounting software. This type of software is used mostly in managing household budgets and expenses. Some personal accounting software makes it possible to download bank account information directly from the Internet for use with the software.

Low end accounting software is generally used by smaller businesses and can typically be found for sale by a variety of retailers. Usually, software in this class is not highly specific and can be used for a wide range of businesses. This type of accounting program is usually adequate for such uses as generating invoices, reconciling accounts, and handling payroll.The next step up in the realm of accounting software consists of applications capable of performing a variety of functions important to business accounting. Referred to as mid market software, accounting applications in this class perform general business accounting functions and frequently include integrated management information systems. Many software applications at this level are capable of providing for accounting in several different currencies. Mid market accounting software is usually purchased from a dealer.Higher end accounting software is more expensive than other types and is usually much more complex. Generally designed for use by large businesses with millions of dollars in transactions, high end accounting programs usually have very sophisticated features and options. Software in this class also allows for a high level of customization. Typically, higher end software is sold through a dealer.Accounts receivable is one of a series of accounting transactions dealing with the billing of customers who owe money to a person company or organization for goods and services that have been provided to the customer This is typically done in a one person organization by writing an invoice and mailing or delivering it to each customer Accounts payable is one of a series of accounting transactions covering payments to suppliers owed money for goods and services The average household performs this task by writing cheques each month to such suppliers to the electric company telephone company cable television or satellite dish service newspaper subscription and other such regular services The general ledger sometimes known as the nominal ledger is the main accounting record of a business which uses doubleentry bookkeeping It will usually include accounts for such items as current assets fixed assets liabilities revenue and expense items gains and losses The process of sending accounts to customers for goods or services is called billing The document used is called an invoice The invoice may be attached to the goods or forwarded separately In business management inventory consists of a list of goods and materials held available in stock where the company tracks attempts to collect overdue bills sometimes part of accounts receivable In accounting an expense represents an event in which an asset is used up or a liability is incurred In terms of the accounting equation expenses reduce owners equity
where the company looks up information on screen without any edits or additions In a company payroll is the sum of all financial records of salaries wages bonuses and deductions The next step up in the realm of accounting software consists of applications capable of performing a variety of functions important to business accounting Referred to as midmarket software accounting applications in this class perform general business accounting functions and frequently include integrated management information systems Many software applications at this level are capable of providing for accounting in several different currencies Midmarket accounting software is usually purchased from a dealer

Higherend accounting software is more expensive than other types and is usually much more complex Generally designed for use by large businesses with millions of dollars in transactions highend accounting programs usually have very sophisticated features and options Software in this class also allows for a high level of customization Typically higherend software is sold through a dealer Some companies choose to develop their own accounting software gearing it completely towards their unique needs Other companies choose to purchase readymade software packages Many organizations employ a combination of the two purchasing software and applying local modifications to make it more efficient