What is the most commonly used accounting software?
It is an often asked question and the answer is not straightforward. Accounting software, not only enables you to work with the accounts but also provides information to business about your financial standing. Accounting software can also be used as a medium for the presentation of financial information to business partners.
The best accounting software is needed for multiple auditing purposes. If you want to use the same software system for both internal and external use, it can help you in increasing the efficiency of the accounting department. There are two types of accounting software systems – accounting application and accounting software.
The basic needs of software are – Calculation of money and gross income, control of sales/billings/discounts, inventory, cash management etc. For accounting applications, the concept is different as it has to support a wide range of features that include bookkeeping, invoicing, payroll management, tax calculation etc. With accounting software, you can track the money flow easily. With such software, you will get the best return on investment, accurate data, high returns and faster processing of orders.
When it comes to accounting software, a few basic factors should be kept in mind to make sure that you get the right one. These factors include:
Software freedom. It should be compatible with different platforms and formats, like Excel, VBA, SQL Server etc.
Business model. After ensuring that it is compatible with many platforms, the next step is to find out the accounting software model you require and choose it.
Quality assurance system. The most common drawbacks are- poor support, poor maintenance and minimal training, limited user friendly features and so on.
Functionality. Here the issues are –
Expansion. When it comes to expansion, you need to ensure that the accounting software supports for expanding your product range, including additional sub modules.
Process automation. Some software applications may not have available process automation feature and cannot be used for process automation purpose.
Business model. The best accounting software is required for accounting system that supports all the related activities like financial reporting, cash management, inventory management, order taking etc.
In order to choose the best accounting software, you can read reviews of commercial products like IBM, Price Waterhouse etc. and then select it.