Accounting software is a tool used by a company to contain modules such as General ledger, Accounts payable, Journal, etc. Accounting software may be purchased online and can be cloud-based or natively stored in the computer’s memory. You also have an option to use cloud accounting with apps such as Xero, QuickBooks, etc. using cloud desktop. Learn more about QuickBooks Premier Cloud Hosting.
An accounting software consists of many modules that help the tool analyze the various ledgers entered into it. Some of the modules are:
- Accounts Receivable
- General ledger
- Accounts payable
- Billing
- Stock/inventory
Non-core Modules
- Debt Collection
- Electronic Payment
- Expense
- Timesheet
- Reports
- Payroll
- Purchase requisition
- Reconciliation
- Journals
- Bank Feed Integration
Most software is sold through resellers and software developers who provide the company with a code that helps them access the application. Buying software online is a tricky business, as many websites promise their software is the best and supply fake reviews to support their product. Unlike them, Xero accounting software is an application that has genuinely great reviews and is known for its consistency and speed.
The different types of Accounting Softwares are-
Personal Accounting
This software is used to manage budgets and simple account reconciliation at the inexpensive end of the market. Personal accounting software is more commonly used in small businesses and homes.
Low-end Market
The accounting software used here is not very sophisticated and has only a single entry instead of a double entry. Suppliers use this software for accounting for the delivery of only a specific type of goods.
Mid Market
This type of software covers a business with multiple currency accounting needs and allows accounting in different currencies.
The software in these industries typically includes the following mechanisms.
- Industry-standard databases
- Industry-leading reporting tools
- Tools that are used for configurations or extension of applications
High-end Market
Most of the High-end Accounting Softwares are web-based and are incredibly costly, and need a lot of time for implementation. These are extremely business-focused and are made to support singular company processes due to their highly customizable nature. Once you take a look at the benefits and features of using an accounting software, you will understand why tools like Xero accounting software are in high demand.
Benefits of an Accounting Software
- Instant connection with bank accounts – Automatically connects with your bank account and conducts credit and debit card transactions without any wastage of time and money.
- Protection of Business Data – In web-based Accounting software, the Business data is hidden behind an e-wall that is heavily encrypted with multiple security layers.
- No manual entry – Data from the documents is directly saved into the software.
Features of a Web-Based Accounting software
- A business performance dashboard that tells you how your business is doing
- The ability to track profits and losses in multiple currencies
- Connect to the bank to perform simple transactions
- Track Inventory, control stock, and add items
- The ability to record receipts online
All said and done, you have to be wary when buying a tool like this. It is always advisable to opt for a demo version and try the application out. The interface and the features matter a lot and you should take your time to gauge their adaptability to your business.
