Accounting Software

AAA

DEFINITION of 'Accounting Software'

Computer programs that assist bookkeepers and accountants in recording and reporting on a firm's financial transactions. The functionality of accounting software differs from product to product. Larger firms may choose to implement a customized solution which integrates a vast amount of data from many different departments. Smaller firms often choose an off the shelf product.

INVESTOPEDIA EXPLAINS 'Accounting Software'

Accounting software is an invaluable resource for modern business. Software allows detailed tracking of financial transactions and near instantaneous reporting and analysis. Before accounting software, these tasks had to be performed by hand, using large transaction journals. Ad hoc reporting was generally impractical due to the labor involved to consolidate the manual entries. Accounting software automates these tasks, reducing the costs of accounting and allowing better financial decision making through timely reporting.

RELATED TERMS
  1. Software As A Service - SaaS

    A cloud-computing approach to providing users with access to ...
  2. Business Software & Services Industry ...

    An exchange-traded fund (ETF) that invests in business software ...
  3. Zero-Proof Bookkeeping

    A manual bookkeeping procedure in which posted entries are systematically ...
  4. Accounting

    The systematic and comprehensive recording of financial transactions ...
  5. Accounting Method

    The method by which income and expenses are reported for taxation ...
  6. Accrual Accounting

    An accounting method that measures the performance and position ...
Related Articles
  1. Footnotes: Early Warning Signs For Investors
    Retirement

    Footnotes: Early Warning Signs For Investors

  2. Accounting Rules Could Roil The Markets
    Bonds & Fixed Income

    Accounting Rules Could Roil The Markets

  3. How To Effectively Use Financial Planning ...
    Personal Finance

    How To Effectively Use Financial Planning ...

  4. Core Earnings Strip Away
    Options & Futures

    Core Earnings Strip Away "Creative" ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center