About accounting software
Accounting software is an ideal choice for a small business owner, large corporate entity or the individual desiring better management and control of their finances and expenses. Accounting software or a bookkeeping package comes in a variety of different shapes and sizes. There are some key functions you should look for when reviewing accounting software. Below is a break down of some of the more common features accounting software offers.
- Accounts Payable - Applications handling A/P functions help automate billing and invoicing when you receive them from vendors for purchases you made. You can use A/P software to schedule payments and issue checks to vendors.
- General Ledger - The general ledger application is the primary focus of many accounting software packages. On the general ledger you can collect information from your financial statements, income statements and balance sheets. Cost reporting typically occurs in the general ledger as well.
- Accounts Receivable - In the A/R application you can automatically track outstanding invoices for collection and payment. Most A/R applications provide you with aging reports to help you track payments before they become outdated.
- Payroll - Payroll applications often coincide with accounting software to enable businesses to keep track of employee pay rates, tax, deductions and even accrued or used vacation hours. You can usually generate W-2s and other important documents using payroll applications.
- Budgeting and Forecasting - Applications handling budgeting and forecasting help you manage your financial transactions and expected budget throughout the year. Look for a program with a planning module if you can to help you plan your finances for the year.