Types of Accounting Software’s: People need to know!

Types of Accounting Software’s: People need to know!

Accounting software is an application that allows an organization to keep a record of money flow for internal and external payments. It also helps in reviewing accounts and audit. It is the primary tool for measuring the financial health of the organization and for fulfilling legal compliance. The software accounting programs can actually help you to maintain the accounts efficiently.

Types of Accounting Software:

Following are the three major types of accounting software:

1. Database Accounting Software:

The system is mainly used by multi-million dollar companies. Data is more secure since businesses need to have a large database to install this type of software. Oracle accounting software is one of the examples of this type. Database software is used to handle financial management, complex tasks, large network and complicated accounting. Its major target is big companies, banks, Large Corporations etc. It is highly secured and has the ability to handle complex accounting tasks. One of the major drawbacks of this software is, its expensive and needs high cost for the maintenance. For this, you need to hire system engineers and experts to handle this software.

2. Installed Accounting Software:

In areas where internet connection is limited, businesses can take advantage of accounting software in the form of CDs or DVDs which you need to install in your desktops or laptops. It mainly targets small to medium-sized enterprises (SMEs). It is very easy- to- install and various accountants can use it. Major disadvantages are it is difficult to customize, difficult to use in multiple locations(unlike any online accounting system), data is available on your computer or laptop only and it is unavailable for online and cannot be shared to others. The only good major advantage is it’s easy to install.

3. Cloud Accounting Software:

the accounting software is available online and data is easily accessed through the Internet or Cloud. Fresh books, Hisaab Accounting Software, Quick books, Sage 50 Premium Accounting 2015, and Xero are the example commonly used small business accounting software in the market. It also targeted targets small to medium-sized enterprises (SMEs). They are economical and can be accessed anytime and anywhere, data is available online. In the modern age, cloud accounting software’s are becoming more popular and common and these online accounting system are very helpful in providing mobility of access to the users.

In conclusion, choose accounting software wisely. Research, study and try to find the best software that fits for your business needs. Because software accounting programs makes numbers manageable and easier to handle. You can simply make a professional and comprehensive financial statement.