Accounting software is a type of Application Software that records and proceeds accounting transactions such as general ledger, trial balance, account receivables, account payables, journal, and payrolls. They all work as accounting information systems. If you want to access it anywhere, at any time, with any device, it may also be online-based and internet-enabled.

Modules: 

Accounting software consists of different modules. The some common are;

Core Modules:-

  • General ledger.
  • Stock/ inventory.
  • Account payable.
  • Account receivable.
  • Sale order.
  • Purchase order.
  • Book-keeping.
  • Financial close management

Non- Core Modules:-

  • Electronic payment.
  • Expense
  • Debt collection.
  • Payroll
  • Timesheet.
  • Reports
  • Reconciliation
  • Purchase requisition.
  • Journals
  • Drill down.
  • Bank feed integration.
  • Late payment reminders.

Some best accounting software in the U.K for small businesses are:

  • Xero
  • QuickBooks
  • SAGE
  • Free Agent

Most larger applications and systems are usually sold via means such as developers, consultants, etc. Furthermore, they charge their clients for installation, customization, and support services because these organizations pay a license fee to the software vendor. This software gives many benefits such as bringing efficiency in the Bank reconciliation process, speed up the information retrieval process, and that too for no hefty fees or charges.

Types of software of accounting:-

There are some types of accounting software.

  • Personal accounting.
  • Low-end market.
  • Mid-market.
  • High-end market.
  • Hybrid solutions.
  • SaaS accounting software

Personal accounting software: – Home uses, managing budgets, simple account reconciliation, and supporting accounts payable –type accounting transactions are commonly targeted by personal accounting software at the inexpensive end of the market.

Low-end market software(2): – It allows most general business accounting functions at the low – end of the business market.

In many businesses which seem characterized by being “single-entry” products, as supposed to double – entry system in many of the low-end products. Some products are not considered GAAP or IFRS/FASB compliant but some are with considerable functionality. They don’t have audit trails and they are without non-adequate security.

 Mid-market software: – The mid–market software may be competent in serving the needs of national accountancy standards and allow multiple currencies in accounting covered by a wide range of business. In general accounting function, it may be designed towards one or more than one market and may include add–on management information system. It may have the following features.

  • Tools for accessing program code, extending the application for example.
  • Industry-standard robust databases.
  • Industry-standard reporting tools.

High–end market: – It is often called enterprise resource planning (ERP) software because it is customarily part of an extensive suite of software. It is the most complex and expensive business accounting software.

This high-end software is basically changing the dynamic of the market these days because most of them are web-based. There are many advantages of high–end market software as these systems are produced to help the individual company-specific processes. They are designed in a way to be highly customizable. In terms of money and implementation time, this software usually comes at a significant cost.

Hybrid solutions: – At multiple stages of growth, this software is suitable for companies. Many smaller clients have to connect multiple locations with more companies expanding overseas. It offers them similar accessibility from multiple locations over the internet where their option is to employ software – as –a service.

SaaS accounting software(1): – On a monthly recurring charge basis instead of upfront license fee, accounting software companies have been able to pay to create accounting software that is compatible with faster computers and internet connections. Their rate has increased steadily and has forced other software to come out with online versions. Since the world is a global village now, everything or every service that we use should have an online alternative for the customers.

Top-rated accounting software: Some examples of top-rated accounting software’s are:

  • QuickBooks online.
  • Xero
  • Fresh Books.
  • Sage
  • Zaho Books.
  • Odoo accounting.
  • Wave accounting.
  • Sage Intact.
  • Crunch

Here are some features of top rated accounting software.

Quick Books Online Accounting features: – The basic features of quick Book Online are Bank Reconciliation, Billing and invoicing, Accounting payable, Account Receivable, Tax management, Expense Tracking, and Payroll Management.

Xero Accounting Features: – Their features are Nonprofits, Purchase Order, CPA firms, Fixed Asset Management, Payroll Management, Tax management, accounts payable, Account receivable.

Fresh Books: – Expense tracking, accounts Receivable, Billing, and Invoicing.

Sage Business Cloud Accounting: – Bank reconciliation, accounts Receivable, Accounts Payable, Expense Tracking, Nonprofits, Payroll management, tax management are the main features of sage.

Zoho Books Feature: – Features of Zoho Books are billing and invoicing, Purchase Orders, Bank reconciliation, Account Payable, Account Receivable.

Odoo Accounting: – Project Accounting, Purchase Orders, CPA Firms, Fund Accounting, Nonprofits, Expense Tracking, Account payable, Account Receivable.

Wave Accounting Features: – CPA firms, Fixed Asset Management, Nonprofits, Payroll Management, Purchase Orders, Tax Management, Expense Tracking.

Sage Intact: – Some common features of Sage Intact are Tax Management, Purchase orders, Fixed Assets, CPA firms, Accounts receivable, Accounts payable.

Crunch: – Crunch features are Bank reconciliation, Tax Management, Purchase Order, Billing, and Invoicing.

Free Agent: – Free Agents provide features of Payroll Management, Purchase Orders, Tax Management, and Bank Reconciliation.

Workday: – Workday Financial Management accounting features are Nonprofits, Project Accounting, Purchase Orders, and Expense Tracking.

As accounting software packages are made for specific industries such as consulting practice, medical practice, construction, etc. if you want to use these systems you don’t need to be a financial expert. There are some benefits of using accounting software, if you are still on the fence.

  • Saving Time.
  • Cash Flow Management.
  • Minimize mistakes.
  • Scalable Solutions.
  • Computerized Invoicing.
  • Organization neatness.
  • Inventory tracks.
  • Actionable reports.
  • Mobility advantage.
  • Regular Financial Monitoring.
  • Ease Tax Compliance.

References.

  1. https://www.fundera.com/blog/accounting-software-for-saas-companies
  2. https://www.investopedia.com/best-accounting-software-for-small-business-5069679