Accounting terms

Dictionary of all accounting terms





What is Accounting Software?

Accounting software is a type of software that accounting professionals or business owners use to process accounting transactions and manage accounts.

The accounting software is usually created by a third party for small and medium-sized businesses, although large businesses and corporations have their own in-house accounting software.

More and more, accounting software is on-line based, or with many on-line features. The range of accounting software is anywhere from simple and user-friendly to complex which requires training and experience.

The cost range is also wide, with SaaS (Software-as-a-Service) subscriptions offering low-priced, limited versions of the software for cheap. Corporation versions of the software will be much more expensive.

All accounting software has different sections (modules) that deal with specific parts of the accounting process.

The core modules are:

  • accounts receivable, for all money the business receives
  • accounts payable, for all money the business owes
  • general ledger, which is the company records ("books")
  • billing/invoicing, for all invoicing to the business' customers
  • inventory/stock, for all the company's inventory
  • purchase order, for all the inventory orders
  • sales order, for all the orders received by customers
  • bookkeeping, for the business records payments and collections

There are other modules in different accounting software that are added on as needed. They include:

  • debt collection, for tracking and collecting unpaid invoices
  • electronic payment processing
  • expense, for entering employee business-related expenses
  • payroll, for tracking employee salary and related taxes
  • reports, for printing out financial data on various parts of the business
  • purchase requisition, for purchases order requests, approvals and tracking

Did you know?

InvoiceBerry's online invoicing software can help you create and send your invoices in under 60 seconds?

There are many plans to choose from, even a plan that's absolutely free, forever. Try it out today.