Business Accounting Software – The Perfect Tool For All Businesses
Business Accounting Software is utilized by businesses to record a business accounting process. The software is an application which usually records accounts receivable, accounts payable, trail balance and payroll and other applications. Depending on the companies requirements and how large the company staff complement is, the application software can either be developed ‘in-house’ and especially designed for the companies needs and requirements, or it may be purchased as a complete package form a third party, one other aspect that could be considered is combination of application software and a third party package, this could also be installed with local modifications.
Understanding the various applications of business accounting software:
Accounts payable – a company enters its bills and the pays the money it owes.
Accounts receivable – When a company receives money it is entered into a database.
General Ledger – A general ledger is the company’s books, in a software application this is also the case.
Billing – the creation of invoices to be sent to customers and clients.
Stock / Inventory – and inventory of stock is kept on the database and updated on regular basis.
Purchase Order – a record of orders is kept of what has been placed for stock.
Sales Order – customers orders are recorded and supply compared against inventory
Cash Book – the company is able to record collections of money and payment
Debt collection – this is where the company will track and keep a record of all attempts to collect bills that are overdue. In some packages this falls under accounts receivable.
Electronic payment – this is the processing of payment via electronic media such as internet banking.
Expenses – employee businesses related expenses will be recorded.
Inquiries – checking of information on a screen without any editing or additions.
Payroll – Salaries, wages and taxes are recorded and tracked.
Time Sheets – professional businessmen will record their time worked so they can bill clients this is often used by consultants and attorneys. Companies can also record employees’ time on timesheets to work out wages.
Purchase requisition – requests for purchases are made and then approved once approved they are then tracked to delivery.
Not all business accounting software packages will have all of the above applications but you will find many of them have the most important ones relevant to a company’s business needs.
The installation and configuration of these packages for a client depends on the needs of the particular company or business. Many middle market or larger organizations have applications that are sold exclusively through a reseller, developer or consultants. These organizations usually ask for a license fee plus charge the client for installation, maintenance of the systems and upkeep.
Some of the important types of accounting software covers the following industries:
Banking institutions
Construction companies
Daycare organizations using child care management software
Medical institutions
Non-profit organizations
Point of sale – the retail market
Companies make use of business accounting software because it offers greater accuracy and reportage of the company’s business expenses, the income and outgoing of stock, and money. Many of these software packages offer better account reporting than done manually, as well as excellent tracking of expenses.