Accounting and finance software is very essential in order to succeed in business, regardless of the size and nature of the business. Many businesses have started making use of accounting and finance software as an integral part of their business operations.
Types of accounting and finance software
The two main types of accounting and finance software are;
Generic software: This is the best alternative for small businesses on account of its low cost of maintenance. Typical generic software includes Peachtree, and Great Plains.
Industry specific software: This offers more components and options. They are usually designed to meet specific needs of a particular organization. However, the cost of maintenance is high compared to generic software.
Merits of accounting and finance software
Accounting and finance software helps the management to make better decisions. It also helps in controlling costs, and in analyzing trends. It also helps to sort out information faster, and it enhances search capabilities without having to go through a heap of documents.
Sometimes, buying and maintaining software can be expensive. A small business may begin with one or two licenses. As the business grows, more licenses can be purchased. The cost of training the workers to use the software should also be considered.
In conclusion, accounting software will not replace genuine accounting knowledge. However, it may accelerate the procedure and make it faster. The fundamental knowledge of accounting is most times needed to setup the software and use it effectively.
Stephen Souky is an accountant; he has worked and thrived in the field of professional accounting for more than 20 years. He is a senior level manager in the Cable/Internet/fiber industry, serving as Controller at MHC. He has a strong background in corporate and personal income tax, business valuation, and various types of accounting software. He is also a member of Great Plains User Group (GPUG).