The Different Categories of Accounting Software

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The usage of accounting software has grown over the years. Today, every business owner, whether he owns a small shop or a huge organization, realizes the importance of accounting systems and software. They not only make the work process smoother, but also make it easier for the company to save financial records and analyze them at the end of every year.

There are different categories of accounting software. Business owners who want to use this kind of software within their organizations must be aware of these categories.

Categories of Accounting Software:

Personal Accounting Software:

Personal Accounting Software is mainly used by freelancers or small business owners. This type of software is simple and is based on the accounts payable type accounting transactions. Users of a personal accounting system can manage house budgets, freelance jobs, bank account information (if permitted) and other similar data.

High-end Accounting Software:

High-end accounting systems are the ones which are highly expensive and are used by huge organizations. This kind of software includes the core components as well as the non core components (read more about these on Accounting Software for Businesses). Also, these systems are capable of performing multi-tasking. For instance, if an entry is made in the ledger, the software will automatically carry it to its respective journal.

There are a number of other functions and including them into the software is of course up to the person who will use them in the future. Another important characteristic of high end accounting software is that it is usually controlled by a separate accountancy firm. This means that if an organization has employed a high-end accounting software, it will hire the accounting software provider company to manage the software.

Low-end accounting software:

These are the ones which are used widely by small business owners. They are small systems and are usually available for free on the Internet for download. The basic purpose of such software is to simply assist the user in generating invoices, handling payroll and reconciling accounts.

Further reading: Corporate Governance | Audit | Performance Improvement

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