| > | | | | Stock/Inventory:In business management, |
| There are many types of accounting software | | | | inventory consists of a list of goods and materials |
| applications on the market today. Some | | | | held available in stock. |
| applications are intended to perform accounting | | | | Non Core Modules |
| functions for large corporate organizations. Others | | | | Debt Collection:where the company tracks |
| are meant for personal use. Still other applications | | | | attempts to collect overdue bills (sometimes part |
| fall somewhere in between, performing functions | | | | of accounts receivable). |
| suited to small businesses, as well as those suited | | | | Expense:In accounting, an expense represents |
| to the average person. | | | | an event in which an asset is used up or a liability |
| Available software ranges from the very simple | | | | is incurred. In terms of the accounting equation, |
| to the very complex, with much variation in price | | | | expenses reduce owners' equity. |
| as well. | | | | Inquiries:where the company looks up |
| Accounting software is typically composed of | | | | information on screen without any edits or |
| various modules, different sections dealing with | | | | additions. |
| particular areas of accounting. Among the most | | | | Payroll:In a company, payroll is the sum of all |
| common are: | | | | financial records of salaries, wages, bonuses, and |
| Core Modules | | | | deductions. |
| Accounts receivable:Accounts receivable is | | | | The next step up in the realm of accounting |
| one of a series of accounting transactions dealing | | | | software consists of applications capable of |
| with the billing of customers who owe money to | | | | performing a variety of functions important to |
| a person, company or organization for goods and | | | | business accounting. Referred to as mid-market |
| services that have been provided to the | | | | software, accounting applications in this class |
| customer. This is typically done in a one person | | | | perform general business accounting functions and |
| organization by writing an invoice and mailing or | | | | frequently include integrated management |
| delivering it to each customer. | | | | information systems. Many software applications |
| Accounts payable:Accounts payable is one of | | | | at this level are capable of providing for |
| a series of accounting transactions covering | | | | accounting in several different currencies. |
| payments to suppliers owed money for goods | | | | Mid-market accounting software is usually |
| and services. The average household performs | | | | purchased from a dealer. |
| this task by writing cheques each month to such | | | | Higher-end accounting software is more |
| suppliers to the electric company, telephone | | | | expensive than other types and is usually much |
| company, cable television or satellite dish service, | | | | more complex. Generally designed for use by |
| newspaper subscription, and other such regular | | | | large businesses with millions of dollars in |
| services. | | | | transactions, high-end accounting programs usually |
| General ledger:The general ledger, sometimes | | | | have very sophisticated features and options. |
| known as the nominal ledger, is the main | | | | Software in this class also allows for a high level |
| accounting record of a business which uses | | | | of customization. Typically, higher-end software is |
| double-entry bookkeeping. It will usually include | | | | sold through a dealer. |
| accounts for such items as current assets, fixed | | | | Some companies choose to develop their own |
| assets, liabilities, revenue and expense items, gains | | | | accounting software, gearing it completely |
| and losses. | | | | towards their unique needs. Other companies |
| Billing: The process of sending accounts to | | | | choose to purchase ready-made software |
| customers for goods or services is called billing. | | | | packages. Many organizations employ a |
| The document used is called an invoice. The | | | | combination of the two, purchasing software and |
| invoice may be attached to the goods or | | | | applying local modifications to make it more |
| forwarded separately. | | | | efficient. |