Accounting software functions as an accounting information system which records and processes accounting transactions within functional features such as accounts payable, accounts receivable, payroll and purchase orders.
It can be purchased from a third party or can be developed in-house by the business using it, or can be a combination of a third party accounting software package with local adjustments. It varies a lot in its function and price.
Where the company tracks salary, wages, and related taxes is Payroll.
Where the company enters money received is Accounts receivable.
Where the company enters its bills and pays money it owes is Accounts payable.
General ledger is the company's books.
Where the company produces invoices to clients/customers is Billing.
Where the company keeps control of its inventory is Stock/Inventory.
Where the company orders inventory is Purchase Orders.
Where the company records customer order for the supply of inventory is Sales Orders.
Where the company tracks attempts to collect overdue bills is Debt Collection.
Where employee business-related expenses are entered is Expense.
You should look for accounting software that is easy to install, set up, understand, and use.
Accounting functions are features required to successfully maintain your financial activities (such as Accounts Payable and Accounts Receivable). Your accounting software should have all the basic accounting functions you'll need.
Choose accounting software that offers a various range of reports. It is better if you can create at least one kind of report from every function. Toll-free phone or live support is must you look for.
You don't have to waste time sifting through hundreds of accounting softwares if you understand both the needs of the business and the functions of the software.
Linda A owns and operates http://www.accountings-software.com