Accounting Software

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.

BREAKING DOWN '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. Business Software & Services Industry ...

    An exchange-traded fund (ETF) that invests in business software ...
  2. Trading Software

    Computer programs that facilitate trading of financial products ...
  3. Currency Trading Software

    Trading software to help the currency trader with forex trading ...
  4. Accounting

    The systematic and comprehensive recording of financial transactions ...
  5. Journal

    1. In accounting, a first recording of financial transactions ...
  6. Software As A Service - SaaS

    A cloud-computing approach to providing users with access to ...
Related Articles
  1. Entrepreneurship

    Best Record Keeping Software Products for Your Business

    Discover the importance of bookkeeping for your business and three of the best bookkeeping software options for your small business.
  2. Investing

    The Top 10 Hidden Factors Affecting Software Stocks

    Want to invest in software? Here are the most important factors affecting profits, revenues, and stock price of software companies
  3. Trading Systems & Software

    The Vital Importance of Choosing The Right Day Trading Software

    Software has made day trading quick and automatic--all the more reason to be as painstaking as possible when choosing the right one for your needs.
  4. Personal Finance

    World's top 10 Software Companies

    Want to invest in software stocks but finding it difficult to identify companies with major software revenue? Here is a list of top software companies
  5. Investing

    The Industry Handbook: Software Industry

    Discover how the software industry has changed throughout the years to become a mainstay for businesses from programming to software as a service.
  6. Forex Education

    Forex Automation Software For Hands-Free Trading

    Automated forex trading software scans the market for favorable trades based on your input. Find out more about this valuable forex tool.
  7. Economics

    Explaining Double Entry Accounting

    Double entry is an accounting and bookkeeping term describing the method of entering transactions into the accounting records.
  8. Investing Basics

    7 Popular Software Programs for Portfolio Managers

    For retail investors and money managers, portfolio management software makes life easier. Here are synopses of seven popular programs.
  9. Executive Compensation

    Accountant: Job Description & Average Salary

    Discover what the job description of an accountant entails, along with education and training, salary and skills necessary for success.
  10. Taxes

    Tax Software Vs a CPA: Which Is Right For You?

    There are occasions when software will suffice, and others that require an accountant’s expertise. Here how to decide which is right for you.
RELATED FAQS
  1. How does portfolio management software work?

    Discover the functions of various complexity levels of portfolio management software, and learn how traders utilize portfolio ... Read Answer >>
  2. Given a good bookkeeping system, would financial accounting be necessary?

    Bookkeeping and financial accounting may seem like they are new creations, but variations have been around for millennia. ... Read Answer >>
  3. What is the best general ledger software for small businesses?

    Learn more about accounting software and general ledger features. Find out how to choose the right program for small business ... Read Answer >>
  4. What are some of the better types of financial analysis software?

    Discover what features make for good financial analysis software, some popular options and why analysts need to pick the ... Read Answer >>
  5. How can I use Excel as my business's general ledger?

    Follow these steps to set up a general ledger accounting system in Excel. A small business can use Excel as a substitute ... Read Answer >>
  6. How much will it cost to hire an accountant to do my taxes?

    Find out how much it costs to hire an accountant and what benefits and services you can expect from your accountant. Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center