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Accounting Software

Accounting software is computer software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll and trial balance. It functions as an accounting information system. It may be developed in-house by the company or organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. It varies greatly in its complexity and cost.

Since the mid 1990s, the market has been undergoing considerable consolidation, with many suppliers ceasing to trade or being bought by larger groups, notably by Sage and Microsoft.

Modules

Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting. Among the most common are:

  • Accounts payable—where the company enters its bills and pays money it owes
  • Accounts receivable—where the company enters money received
  • Billing—where the company produces invoices to clients/customers
  • Collections—where the company tracks attempts to collect overdue bills (sometimes part of accounts receivable)
  • Expense—where employee business-related expenses are entered
  • General ledger—the company's "books"
  • Inquiries—where the company looks up information on screen without any edits or additions
  • Payroll—where the company tracks salary, wages, and related taxes
  • Reports—where the company prints out data
  • Time—where professionals (such as attorneys and consultants) record time worked so that it can be billed to clients

Personal Accounting

Mainly for home users that use accounts payable type accounting transactions, managing budgets and simple account reconciliation at the inexpensive end of the market suppliers include:

Business - Low End

At the low end of the business markets, inexpensive applications software allows most general business accounting functions to be performed. Suppliers frequently serve a single national market, while larger suppliers offer separate solutions in each national market.

Many of the low end products are characterized by being "single-entry" products, as opposed to double-entry systems seen in many businesses. Some products have considerable functionality but are not considered GAAP or FASB compliant. Some low-end systems do not have adequate security nor audit trails.

Suppliers include:

  • 24SevenOffice - web-based accounting system.
  • The Sage Group, now owners of many packages, some extending into the mid market (including CPA, Best, TAS, Sage Line, Oberon-bwa, Gandke & Schubert)
  • Intuit, Inc.'s Quickbooks - Quickbooks is Intuit's Business Accounting solution.
  • Microsoft Money - Some versions of Microsoft Money include tools for small business accounting
  • Systems Online (http://www.sysonline.com/FA) developers of many packages, some extending into the mid market.
  • Banana Accounting

Business - Mid Market

The mid-market covers a wide range of business software that may be capable of serving the needs of multiple national accountancy standards and allow accounting in multiple currencies.

In addition to general accounting functions, the software may include integrated or add-on management information systems, and may be oriented towards one or more markets, for example with integrated or add-on project accounting modules.

Suppliers include (external links):

    • 24SevenOffice - web-based accounting system. External link (http://24SevenOffice.com)
    • Agresso (http://www.agresso.com)
    • Best Software (Sage) (http://www.bestsoftware.com) (Best Software publisher of Peachtree, Dac Easy, Business Works, MAS 90, MAS 200, and MAS 500, Timberline, ACCPAC, FAS Fixed Assets, Best HR)
    • CODA (http://www.coda.com)
    • Deltek (http://www.deltek.com/)
    • Microsoft (http://www.microsoft.com/BusinessSolutions/Financials/default.mspx) (now the owners of Axapta, Great Plains, Navision, Business Management Systems p2p and Solomon)
    • RSA Software (http://www.rsasoftware.com)'s Business Solutions version 6
    • Systems Online (http://www.sysonline.com) (Free Accounting (http://www.freeaccountingsoftware.net) and DiMan (http://www.sysonline.org) Distribution Management Accounting System)
    • Pegasus Opera II (http://www.systel.co.uk/software/pegasus-opera-ii/pegasus-opera-ii-2.htm) (Instant Online Quotation (http://www.systel.co.uk/software/pegasus-opera-ii/quotation/pegasus-opera-ii-2-quotation.htm))

Business - High End

The most complex and expensive business accounting software is frequently part of an extensive suite of software often known as Enterprise resource planning or ERP software. Suppliers generally operate globally and include:

  • CODA
  • SAP
  • Baan
  • Oberon-bwa
  • Oracle Applications (now owner of PeopleSoft and through it also J.D. Edwards)
  • Lawson Software