4 Different Types of Accounting Software

Posted by R J on July 25th, 2019

Accounting software is an integral part of a business' ability to record monetary transactions. This kind of software holds all the data needed to calculate finances.

If you need it for your company, you can find it online. There are many types to choose from, depending on your business needs. Continue reading to learn about them.

Spreadsheets

Spreadsheets are often used by small businesses and startups. These programs are affordable and flexible and can be configured to meet almost any basic accounting need. For example, you can create a formula to calculate your total profit based on relevant financial information.

The only downside: human error. This is because humans generate the formulas and input the data. If someone puts a result in the wrong column or row, the results will be inaccurate.

Commercial

Commercial programs are used as midsize or small business accounting software. These programs allow for basic adjustments to functions depending on the needs of the company. Commercial software can contain a security feature for error detection, preventing discrepancies in the data's accuracy. It can also generate reports depending on the user's setup.

Some commercial software is created for specific industries. These programs have additional features to help address the needs of their target industry. The installation process may be long since these programs are often large. You may also need on-site support from the manufacturer.

Enterprise

Enterprise software is designed for large corporations. It shares a lot of features with commercial accounting programs. However, enterprise programs contain more advanced features, such as better error detection and user privilege management.

This software integrates all of a company's financial information into a single database. This eliminates having department-specific software that doesn't allow information-sharing, a common problem big businesses face.

Custom

Custom software is made specifically to meet the requirements of an organization that has particular accounting processes or challenges. Its integration and interface vary depending on how a company wants it. Most of the time, custom software is made by an engineer working within that enterprise.

These are the different business accounting programs that you can use. You can search online for software distributors, so you can find the right product for your needs. Whether it's for a large corporation or a small business, accounting software is essential to help you manage your finances.