It is a type of software that is used for bookkeeping and to keep track of financial transactions. The functionality and working of the financial software may differ from one product to another.
For example, if someone has a larger firm, they can choose a customized type of accounting software according to the requirements. On the other hand, if someone has a small firm they may go for an off-the-shelf solution.
How Accounting Software works?
For modern businesses, accounting software is an indispensable resource. It allows you to analyze and keep a detailed track of your transactions. It can generate an instant report so that you can manage it instantaneously. Before this software, at the very beginning, people used to keep the data by hand. They had to keep the record of every single transaction on papers that could be destroyed or easily lost.
It allows you to keep huge amounts of data. Like papers, it does not require any physical space if the data exceeds the limits. On ad hoc basis you can access the data at any time anywhere. No extra labor is required to compile and generate a financial report and numerous amounts of time.
It has automated all the financial reporting tasks. Audits has been made easy. You can access all the data chronologically which is required to audit a company. If you need to investigate transactions for tax purposes, they also provide the assistance from external groups like IRS (Internal Revenue Service)1
What is the best for you?
There are many accountings software available in the market like Microsoft, QuickBooks, SAP, and Oracle. They are all different from each other in terms of services, features, and capacity to handle the data. Some of them are for small businesses, some of them are for large enterprises. Some of the distinguished features are vast reporting options, LIFO, FIFO inventory, POS integration and document management etc.
It is important to know that how and where you will use the accounting software whether it will be cloud based or SaaS2 based.
Types of Accounting Softwares:
In terms of services and operations performed in a business, it is further divided into three types.
- Billing or Invoicing: It is this type of accounting software in which all the operations regarding billing or invoicing are performed. To keep the track of day-to-day tasks and the operations which a business undertakes like a cheque writing or tracking due to payments of the customers.
- Payroll System: It is the type of accounting software used to generate and manage the financial records of your employees. It is the most common and highly used type of software used by almost every type of business entity. It manages employee’s salaries, net pay, pay slips, allowances, and deductions.
- ERP Systems: ERP or Enterprise Resource Planning is a type of accounting software responsible to manage all the essential tasks of a business. It manages all the systems, used for product planning, procurement, purchase of raw material, management of inventory, marketing, finance, and HR department.
Best Accounting Softwares:
Accounting software is like a building block of your business when you start it from the scratch. It is the very first software application you need to get before starting a business. The best accounting software helps you to manage all the financial problems in a systematic way. We have compiled a list of best accounting softwares till date so that you can choose from them according to the nature of your business. Here are few of them:
- QuickBooks: It is an extremely popular and widely used accounting software. I can bet on it that there is no one with an accounting background, never heard of QuickBooks. It is the highly praised accounting software. Its effectiveness, affordability and easy to use makes it stand alone. Many businesses found QuickBooks helpful in integration with other systems.
- FreshBooks: It is the best accounting software for invoicing. It can be challenging for you to find the best accounting app that exactly matches your requirements. Some businesses use Excel but sometimes it is not enough. Some of the applications provide absolute accounting services but lack the quality of invoicing tools. FreshBooks, on the other hand, stands out among all the invoicing tools.
- Oracle NetSuite: It is the best ERP tool for small business owners. If you want to see the overall progress of your business in a single picture, then it is the best for you. From a single dashboard you can monitor all your financial activities.
- Zoho Books: It is the best for microbusinesses. They usually need simple and professional software solutions for their accounting needs so, Zoho Books is the best. It offers all the necessary tools for accounting needs microbusinesses. It provides integration options when your business grows over time.
- Xero: It is the best professional software suitable for growing businesses. Although every business starts from the small, they do not stay as they have started it. They grow over time; their needs and requirements grow too. If you are looking for accounting software, that grows with your business, then Xero is made for you.
- Zarmoney: If you want transparent pricing, then Zarmoney is definitely made for you. The company tell their clients how much they will actually pay through the period. It is very hard to know that how much an accounting software will cost you over the period. Zarmoney prides itself about their transparent pricing solutions.
- Plooto: It is the best-automated accounts payable processing tool. Most of the time, small businesses are not able to enjoy the perks of big enterprises. Plooto provides the best solutions to the financial problems of small businesses at low prices.
- GoDaddy: It is the best for online merchants, who wanted to keep bookkeeping online. If you are having difficulties in the management of online and offline sales, then GoDaddy is definitely made for you. Its most powerful feature is its integration with other online marketplaces like Amazon, PayPal and Etsy. It provides the ease to send the invoices and accept the payments.