Accounting software is a type of application software which is involved in recording and processing of accounting transactions. It is used to manage accounts payable, accounts receivable, trial balance, and payroll. The accounting software can be developed on own by an organization or can be bought by a third party.
Many types of accounting software applications are in use in the market. Many large corporations make use of the software for performing several accounting functions. However, the software can also be meant for personal use. Documentation of tax transactions and creation of related reports can also be possible through the application of accounting software. Billing clients and customers, and debt collection are also done by the software. The software can also provide certain programs for keeping time sheet records that can be used for tracking the hours worked by employees. Personal accounting software can be used for management of household budgets and expenses. Bank account information can be downloaded directly from the internet with the help of accounting software.
Low-end accounting software can be used for a wide range of businesses. Many small businesses use this software for generating invoices, reconciling accounts and handling payrolls. Mid-market software is another application of accounting software which performs accounting functions which include management information systems. A higher-end accounting software is much complex and expensive which is used for large businesses. The high-end solutions are more advantageous as they are developed for supporting specific processes of an individual company. The business requirements can be accurately met by high-end accounting software.