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