Accounting Software

As any business manager can tell you, accounting software is much more than just a software application that records financial transactions – it is the lifeblood of a company.

A good accounting software program will allow you to process not only accounts payable and accounts receivable, but also payroll information and even complete financial statements.

Some companies operate using free accounting software, but large publicly-traded firms will use multi-million dollar software packages. If you are a small or mid-sized business, you probably aren’t considering a high-end accounting application. That’s OK, because you really don’t need expensive software to handle your accounting needs.

A basic accounting software package will likely fit most of your needs, but make sure that it includes the following key components.

Accounts Receivable – recording the amount of money that your company is owed.

Accounts Payable – recording the amount of money your company owes others.

Invoicing – the ability to send an invoice to customers or vendors that owe you money.

Inventory Control – manage your current inventory levels and place additional orders when necessary

Sales – recording the details of each sales transaction

Expenses – record the operating expenses of your business (e.g. marketing, phone, internet, etc.)

Payroll – record salary, commissions, etc. for your employees and/or freelance consultants

Reporting – the ability to produce detailed and aggregate financial statements

A further advantage of utilizing a basic accounting software program is that most applications are generally turn-key. Meaning that you can be up and running without having to wait for months to have the systems integrated and customized.

Having a good accounting software application will keep you instantly apprised of the health of your business. Detailed financial statements (including income statements, balance sheets and cash flows statements) can be generated within minutes. You have complete documentation of all transactions that can save you a lot of headaches as your business grows.