| Accounting software is computer software that records
and processes accounting transactions within functional modules such as
accounts payable, accounts receivable, payroll and trial balance. It functions as an accounting information system. It may be developed in-house by the company or
organization using it, may be purchased from a third party, or may be a
combination of a third-party application software package with local modifications. It varies greatly in its complexity and cost.
Since the mid 1990s, the market has been undergoing considerable consolidation, with
many suppliers ceasing to trade or being bought by larger groups, notably by Sage and Microsoft.
Modules
Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting.
Among the most common are:
names may differ by vendor
- Accounts payable—where the company enters its bills and
pays money it owes
- Accounts receivable—where the company enters money
received
- Billing—where the company produces invoices to clients/customers
- Collections—where the company tracks attempts to collect overdue
bills (sometimes part of accounts receivable)
- Expense—where employee business-related expenses are entered
- General ledger—the company's "books"
- Inquiries—where the company looks up information on screen without any edits or additions
- Payroll—where the company tracks salary, wages, and related taxes
- Reports—where the company prints out data
- Time—where professionals (such as attorneys and consultants) record time worked so that it can be
billed to clients
Software Categories
Free software
Freeware but non-free
Personal Accounting
Mainly for home users that use accounts payable type accounting transactions, managing budgets and
simple account reconciliation at the inexpensive end of the market suppliers include:
Business - Low End
At the low end of the business markets, inexpensive applications software allows most general business accounting functions to
be performed. Suppliers frequently serve a single national market, while larger suppliers offer separate solutions in each
national market.
Many of the low end products are characterized by being "single-entry" products, as opposed to double-entry systems seen in
many businesses. Some products have considerable functionality but are not considered GAAP or FASB compliant. Some low-end
systems do not have adequate security nor audit trails.
Suppliers include:
- The Sage Group, now owners of many packages, some extending into
the mid market (including CPA, Best, TAS, Sage Line, Oberon-bwa, Gandke & Schubert)
- Intuit, Inc.'s Quickbooks - Quickbooks is Intuit's Business
Accounting solution. External
Link (http://www.intuit.com/business/)
- Microsoft Money - Some versions of Microsoft Money include tools for small business accounting External Link (http://www.microsoft.com/money)
- Systems Online (http://www.sysonline.com/FA) developers of many packages, some extending into the mid
market.
- Banana Accounting (http://www.banana.ch)
Business - Mid Market
The mid-market covers a wide range of business software that may be capable of serving the needs of multiple national
accountancy standards and allow accounting in multiple currencies.
In addition to general accounting functions, the software may include integrated or add-on management information systems, and may be
oriented towards one or more markets, for example with integrated or add-on project accounting modules.
Suppliers include (external links):
- Agresso (http://www.agresso.com)
- Best Software
(Sage) (http://www.bestsoftware.com) (Best Software publisher of Peachtree, Dac
Easy, Business Works, MAS 90, MAS 200, and MAS 500, Timberline, ACCPAC, FAS Fixed Assets, Best HR)
- CODA (http://www.coda.com)
- Deltek (http://www.deltek.com/)
- Microsoft (http://www.microsoft.com/BusinessSolutions/Financials/default.mspx) (now the owners of
Axapta, Great Plains, Navision,
Business Management Systems p2p and Solomon)
- RSA Software (http://www.rsasoftware.com)'s Business Solutions version 6
- Systems Online (http://www.sysonline.com) (Free Accounting (http://www.freeaccountingsoftware.net) and DiMan (http://www.sysonline.org)
Distribution Management Accounting System)
- Pegasus Opera II (http://www.systel.co.uk/software/pegasus-opera-ii/pegasus-opera-ii-2.htm) (Instant Online
Quotation (http://www.systel.co.uk/software/pegasus-opera-ii/quotation/pegasus-opera-ii-2-quotation.htm))
Business - High End
The most complex and expensive business accounting software is frequently part of an extensive suite of software often known
as Enterprise resource planning or
ERP software. Suppliers generally operate globally and include:
Business - Vertical Market
Some business accounting software is designed for specific business types. It will include features that are specific to that
industry.
Application software
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