Accounting software is an application where documentation and processing of accounting transactions are done. For this purpose, it utilizes multiple modules like payrolls, trial balances, and journals, etc.

Basic knowledge of accounting software (1)

Accounting software acts as an accounting information system. Company accountants or decision-makers monitor business procedures and create financial summaries. A person running a small business can use free or inexpensive and simple platforms for his business. He may only need bookkeeping software that records financial transactions through managing payroll or a general ledger. Whereas complex software with deep processing methods and more features are suitable for large enterprises.

Capabilities and features of accounting software

Features of general ledger develop the foundation of many budgeting and accounting platforms. Features like payroll management, order, and inventory may be incorporated as modules within the program or maybe controlled by third-party plug-ins. Accounting tools may also include integration/customization and reporting features, which are offered by various software categories. Extra capabilities are pertinent to accounting enterprises that handle finances for different businesses.

General ledger features

These are considered as records of balances and transactions. These are consist of the beekeeping functionality of any software. Such as:

  • Bank reconciliation
  • Expense management
  • Cash management
  • Management of fixed assets
  • Time tracking
  • Regulation compliance
  • Multi-division and multi-currency support
  • Electronic way of filing a tax
  • Self-service portal

Inventory management features

These features help the business in tracking and managing the flow of materials or goods out of or into an inventory. These are pertinent to industries having physical inventories such as suppliers and retailers. This functionality addresses:

  • Manufacturing module
  • Inventory tracking
  • Location management
  • Automatic reordering

Order management features

These features help the business in processing orders and tracking them. These features are suitable for the enterprise that deals in goods or services and materials. For instance, e-commerce retail sellers require product order management and pool maintenance firms that require work orders management. Fundamental management features include:

  • Order entry
  • Pricing
  • Calculating goods’ expenditure
  • Credit card processing

Payroll management features

This feature manages the money and cost flow of the company’s workforce. Such features may be less or more sophisticated, relying on the company’s scale and the type of workers (e.g., contractors, part-time, full time, etc.). Payroll management features are:

  • Calculation of pays
  • Administration of benefit plan
  • Immediate deposit files
  • Salary revision
  • Increment management
  • Reimbursement management

Accounting firm features

These features are suitable for the enterprise that uses goods or materials on behalf of consumers. These include:

  • Branded dashboards
  • Capabilities of client roll-up
  • Client’s data consolidation
  • Warnings for overdue materials and forms
  • Billing bypass substitutes
  • Template cloning of clients for dashboards, report, set up, and format
  • Cross-client workflow supervision
  • Industry-specific visioning
  • Legacy system

Different types of accounting software (2)

  1. Invoicing software

This type of accounting software handles the fundamental activities of the company. This software also helps in routine tasks of enterprises such as writing a cheque and notifying the due payments to buyers.

Examples include Invoiced, Zoho Books, and FreshBooks.

  1. Payroll management system

This software provides multiple services to large enterprises. It manages the payroll registers. It also performs multiple tasks such as calculation of allowances, deductions, transferring salary into the bank accounts of workers, generating tax forms, and more.

Examples include AccountEdge, Zenefits, and Xero.

  1. Enterprise resource planning systems

It is one of the valuable accounting software systems. It integrates all those systems that are utilized for finance, marketing, accounting, distribution, inventory control and management, material purchasing, product planning, and HR. The latest ERP systems provide modules for business intelligence and CRM.

Examples include Odoo, Brightpearl, and Intacct.

  1. Expense and time management system

Enterprises use this system to accelerate their billing cycles and endorse their expenses. This system is easily configurable. The core function of this system is to help in collecting payments actively and detecting inactive and slow practices. It is capable of producing comprehensive graphical summaries on how resources and time are being utilized in the business.

Examples include Expensify, Zoho Expense, and FreshBooks.

Top accounting software of 2021

  1. Sage Intacct

Sage Intacct gives businesses the agility and visibility to make appropriate data-related verdicts at a suitable time. It navigates people to recovery and growth. It is integrated with planning and budgeting and paired with people and HR. It allows digital modifications via continuous accounting, continuous insight, and continuous trust.

Features

It provides the following features:

  • Accounting features; cash management, account payable, bank reconciliation, account receivable, multi-division support, Multi-currency support, Self-service portal, Global Financial support, and more.
  • Inventory management features; inventory tracking and location management.
  • Order management features; order entry, pricing, credit card processing, and end-to-end order visibility.
  • Payroll management features; reimbursement management.
  • Analytics & reporting features; custom reports, standard reports, and dashboards
  • Customization features; plug-ins and API
  • Security features; role-based user authorization, solitary sign-on capability, multi-factor authentication, and audit trail.
  1. Xero

Xero is considered as best accounting software for personal finance as well as for small businesses. The product is available with monthly charges. The starter pack costs $9/month.

Features

It features

  • Invoicing
  • Bookkeeping support
  • Bank reconciliation
  • Purchase order management
  • Expense management
  • Tax management
  • Mobile accessibility
  • Customer relationship management
  • Project management
  1. QuickBooks Online Advanced

It is cloud-based accounting software. It simplifies the accounting operations of growing businesses. The core features of this software are enhanced with various tools such as revenue dashboards, visual cash flow, customized business analytics, restore, and online backup.

Features

It features

  • Intercompany accounting
  • Standardize processes
  • Enterprise accounting
  • Self-service portal
  • Time tracking
  • Expense management
  • Cash management
  • Inventory tracking
  • Pricing
  • Order entry
  • Plug-ins
  • Cloud-based features
  • Mobile app
  1. Zoho Books

It is easy-to-use accounting software. It helps businesses in the online management of accounts. This solution offers a free trial for 14 days. Small businesses consider it useful to manage their finances.

Features

It features:

  • Accounting
  • Barcode integration
  • Banking integration
  • Invoice
  • Inventory management
  • Expense management
  • Email integration
  • Mobile support
  • Multi-currency
  • Multi-location
  • Outstanding
  • Online data storage
  • Project management
  • Product database
  • Multiple companies

Reference

  1. https://www.trustradius.com/accounting
  2. https://financesonline.com/accounting-software-analysis-features-types-benefits-pricing/