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.

  1. Software As A Service - SaaS

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  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 Method

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

    The systematic and comprehensive recording of financial transactions ...
  6. Accrual Accounting

    Accrual accounting is an accounting method that measures the ...
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  1. What is the best software for managing bills of lading?

    The best software program for managing bills of lading depends on an organization's size and industry, as well as its overall ... Read Full Answer >>
  2. What's the difference between a trial balance and a balance sheet?

    There are many differences between a trial balance and a balance sheet. For example, a trial balance is an internal report ... Read Full Answer >>
  3. How can I use Excel as my business's general ledger?

    For a small business with few transactions, a savvy business owner can use Excel as a substitute for accounting software. ... Read Full Answer >>
  4. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  5. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
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