Question

Describe major accounting softwares and examples in thow pages?

Answer 1

Accounting software are those application software that records and then processes accounting transactions for an entity – be it a business entity, not for profit organization or a government or a public institution. Accounting software has functional modules that consist of core modules as well as non-core modules. Core modules comprise of accounts receivable, accounts payable, sales order, stock and inventory etc. Non-core modules consist of payroll, timesheet, debt collection etc.

Major types of accounting software are:

(i) Spreadsheets – these are mainly used by small businesses to record journal entries, ledgers and financial statements of excel. It is used in cases where number of accounting transactions is low.

(ii) Commercially available software – These types of software are developed by experts and by companies that specialize in this field. Commercially available software can be configured according to the needs and requirements of a business. For example Quickbooks, Quicken etc are some of the popular commercially available accounting software available in the market.

(iii) Enterprise Resource Planning (ERP) – This software integrates all the aspects of a business into a single database. For example SAP ERP is one of the most popular ERP package available in the market.

(iv) Custom accounting software – Such software is custom developed for a business entity. For example SaMsolutions develops customized accounting software. Many large corporations develop their own software in house.