General Categories of the Accounting Software Systems

Main categories of the accounting software systems

Accounting is one of the most critical parts of running a business as is used for collecting and analyzing information about the financial viability of companies and organizations.

Three general categories of the accounting software systems:

  • Entry-level accounting software 

Entry-level accounting computerized programs are the best solution for individual entrepreneurs and micro-enterprises with five and fewer employees. This type of accounting software is the cheapest of the offered products and provides standard functions such as accounts receivables and accounts payables and basic financial reporting.

  • Small to medium business accounting software systems

In addition to the basic features offered by the entry-level products, small to medium business accounting software programs provide more features that enable supporting and processing other business operations such as purchase management, inventory management, and others. These products allow for up to twenty-thirty simultaneous users.

  • Enterprise accounting software systems

Enterprise accounting software systems are the most expensive and designed principally for large organizations. These systems provide more advanced and robust features such as customer relationship management, human resource management, and others. They also can support the unlimited number of simultaneous users.

Any of the listed accounting computerized solutions provide businesses with more or fewer benefits depending on the power of the software system.

Some main advantages of using accounting software:

  • automatically calculating Balance Sheet and Profit and Loss Statement based on the journal entries; 
  • minimizing the probability of errors in financial documents, 
  • saving time and money, • easily transferring the data to auditors and accountants; 
  • automatically printing financial statements, invoices, journal entries, and other documents in a professional format; 
  • the availability of the embedded tools and functionalities that enable performing financial analysis.
accounting software systems

Monitoring the financial health of the business on a real-time basis helps successfully running businesses of all sizes from any industry.