Comparison of Accounting Software Homework Help

Many applications software are used for different purposes in this world. Application software is basically computer software which is being designed to help the user to perform the specific tasks. Software refers to one or more computer programs and data held in the storage of the computer.

Accounting Software is application software which records and processes the accounting transactions within the functional modules like the accounts payable, the accounts receivable and payrolls. Accounting software is the computer program that assists the bookkeepers and the accountants in recording and reporting on a firm’s financial transactions. Its functionality differs from product to product. The accounting software functions as an accounting information system. These types of software may be either developed in-house by the company or organization using it or it may be also purchased from a third party.

Accounting is the lifeline of any business; it deals with summarizing, analyzing and reporting the financial data and information about the business. It is an invaluable resource for the modern business. The accounting software automates these financial transaction tasks reducing the costs of accounting and allowing the better financial decision making through the timely reporting. Accounting software records and processes the accounting transactions of a business within its functional modules.

These modules are divided according to different categories:

A) Core Modules:

1) Accounts Receivable: Where the money received or credited into the companies account is being entered.

2) Accounts Payable: Where the money enters its bills, payable amounts or the debts and pays the money it owes.

3) General Ledger: The company’s books which take care of the company’s financial dealings.

4) Billing: Where the company produces the invoices to its clients or the customers.

5) Stocks/Inventory: Where the company keeps a control and record of its inventories.

6) Sales Order: Where the company keep the records and maintains the customer orders for the supply of inventory.

7) Purchase Order: Where the company orders for its inventory.

8) Bookkeeping: Where the company keeps its day to day collections and payments to be made.

B) Non Core Modules:

a) Debt Collection

b) Electronic Payment

c) Expense

d) Payroll

e) Reports

f) Timesheet

g) Purchase requisition

h) Reconciliation

Most of the accounting software includes all the above-mentioned accounting modules. More specialized features software has, more expensive it becomes.