Accounting software is a computer software used to manage accounts and perform accounting operations. It can vary from simple, single-entry programs used for individual record-keeping to an elaborated, double-entry systems that can process accounts receivable, accounts payable, invoices and inventory, among many other functions.
An accounting software is vital to a company as it allows them to track financial transactions and receive consolidated reports. Before accounting software became widely used by companies, many accounting tasks were done by hand or with the use of Excel. With the advancement of technology, accounting software has proven to help cut cost and improve work efficiency tremendously. It eliminates human error and enables better business data.
For small and medium enterprises, most off-the-shelf software is sufficient to fulfill the company’s accounting needs. Bigger and more established corporations can choose to employ customized accounting software.