Accounting Software Classification and Types - Helping Small and Large Organization

accounting software program or set of programs that records and processes accounting transactions in accordance with the rules and regulations specified and takes each transaction input to the final book as well as trial balance, profit and loss account and balance automatically. Accounting is part of life, it is everywhere it will be at home, trade, services, companies or government odjele.Knjige that contain information about financial transactions are required.

Accounting software makes the task of keeping the account books easily. This is done in several ways such as software helps lay person in accordance with their books, who has no knowledge of accounting rules. The software helps small and large organizations to keep the book with ease for processing and recording on their own, and relieving the accounts department of repetitive work, and otherwise to assist in the analysis accounts for the better and more profitable decisions, and getting a warning for wrong decisions or traps.

Accounting software is typically contain modules such as accounts receivable, accounts payable, general ledger, billing, inventory, purchase orders, sales orders, bank book and cash book. These are the core accounting software modules, however not essential module may include several options such as debt collection or outstanding, payment performance, costs, salaries, etc.

Accounting software can be classified as per their performance in several categories. Personal accounting software designed for simple accounting purposes, such as budget management, expenditure and revenue for personal accounts. These software also includes reports for reconciliation as well as bank books and expense list. Inventory and accounting software is another category of software that is used to selling and purchasing options, few have the ability to stock too much and use an input system for accounting. These software are very low in terms of functionality and support only one type of regulation and currency. These software are designed with GAAP or IFRS compliance only provide accounting as an additional feature with the software.

The accounting software used by mid-level companies have more money and more control options that allow users to book in accordance with international standards. Reporting of the program is robust and scalable by using external tools. These software use scalable and flexible database back end such as Oracle, Pervasive, MS-SQL, MySQL, etc. Management information systems provide, together with the software support capable of reporting tools like Crystal Reports and Cognos.

ERP software is the advanced version of the finance accounting software uses high levels of organizacije.Prednost use of such software is that it can be customized according to user needs and requirements without interfering with IFRS or GAAP, and maintain the accuracy and speed of transfer of vital information and analysis. Large organizations need to adopt several rules to work smoothly and cover the traps, and the software adapt to these changes in order to allow users to freely operate with the same flexibility. Some accounting software specifically designed for a particular industry, solving real problems of industry and deliver advanced features such as data security and privacy. Such software is used by banks, financial institutions and government bodies. These software are flexible enough to adjust according to changing rules and regulations too with greater ease.