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Accounting
Software
The type of accounting software you require
depends to a large degree on the size and type of business you run.
The size and complexity of your business will determine the
different functions that need to be incorporated into your
accounting software package.
A small, single-person business only requires a simple software
solution running on one computer. On the other hand a large
manufacturer with separate management, production, warehousing and
sales facilities will require a complex integrated accounting
software solution which has been networked to provide real time
accounting to all divisions.
Most small businesses will find that a simple accounting software
package like QuickBooks may be perfectly adequate. Even QuickBooks
has options for larger businesses. At their most basic, accounting
programs like QuickBooks will allow a business owner to keep track
of all purchases made on behalf of the business. They also allow the
business owner to create simple invoices and store the information
from each invoice, so that statements can be prepared for each
account at month¡¦s end.
There are add-ons available to most small business accounting
software solutions that enable the business owner to accept credit
cards, keep track of stock and inventory through the use of bar
coding and point of sale applications. Purchase order modules can be
added, which automatically raise a purchase order when the stock of
a particular item reaches a predetermined re-order level.
When a business reaches this level of sophistication, it invariably
employs a number of people and more complex accounting records are
required. There may be add-ons available for the accounting software
currently in use, to control such things as payroll, budgeting,
management accounting reports, assets register etc.
Medium sized businesses are going to require an accounting software
solution that is more complex. Networking is going to be required so
that the various functions within the business all have access to
the software.
The software solution in a medium sized business is typically based
on accounting modules which can be plugged into the system. Each
module represents one accounting function, the most common being
accounts receivable, accounts payable, and general ledger.
As the business expands, more financial control is delegated to
other departments and additional modules can be added to the
accounting system; for example, payroll, assets register, which
keeps track of all assets and their depreciation, purchase order
tracking, order entry, and Inventory control.
Accounting software for large organizations is normally part of an
expensive custom designed software solution which is managed by a
team of information technology professionals.
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