Different Types Of Accounting Software

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