Accounting Software Classifications

Using an accounting solution is necessary to assist accountants and bookkeepers in monitoring all aspects of your business. We all know that a business requires very careful planning and management in order for it to grow and become successful. If there are mistakes and wrong decisions, your company could be in jeopardy.

Though it may seem very simple, choosing an appropriate solution for your business is complicated. You need to determine the specific needs of your business to know which type of software is the right one that could cater to these needs. There are different types and classifications of accounting software, and you have to make sure that you are getting nothing less than the best.

Modules and Classifications

There are different modules that comprises an accounting system. These include some core modules like the accounts receivable, general ledger, billing, inventory, purchase order, sales order, payroll and cash books. There are also noncore modules like those that address issues such as debt collection, payment performance and expense reimbursements. And along with these modules, software packages are classified according to their function.

Personal

The first type of an accounting software is directed at personal accounting, which is used for simple accounting purposes such as managing budgets, expenses and income for personal purposes. This type of software also assists you with your reconciliation of bank accounts and expense sheets.

Inventory-Accounting Software

This software classification is generally used for sales and purchase options where goods are sold. It is also made for inventory management throughout the process from purchase order to customer sales.

Medium Scale Enterprise

Medium scale enterprise businesses use accounting software that allows for multiple currencies and different regulation options. These software packages enable companies to comply with international standards. This level of software utilise flexible databases like Oracle, Pervasive, and SQL.

ERP Software

ERP or Enterprise Resource Plan software is a type of software that is more advanced and generally addresses more than just accounting requirements. This type of software is also used by mid-level organizations. The biggest advantage of using ERP is that it can generally be customized to fit and meet the unique and special needs of a particular business. However these accounting software solutions are generally very expensive to implement and operate.

Custom Developed

Some accounting software packages are custom developed for specific organizations in order that every need and requirement is met. This sort of package is generally used by large organizations such as banks and big multinational corporations.

The correct software packages is essential for the efficient and effective operation of all businesses whether small, medium or large scale. The best thing about accounting software is that they are now available over the internet. This greatly reduces the cost of maintaining a package in house as the need for servers and IT staff is eliminated.

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