What is Accounting Software

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Accounting software is a computer program where financial transactions occur in an organization by the accounts office to store financial records.

Any company that manages financial records needs ERP software. Its main module is accounting software because all modules synchronize with the accounts module, like Sales, Purchase, Warehouse, HRM (including payroll), etc. After using this software, top management can make decisions for new planning for their organization. Overall management, financial support, security, and organizational stability can be achieved by using accounting software, allowing management to organize their business well

Accounting software saves time and minimizes errors. A businessman can store long-term and short-term financial reports that help with decision-making and financial planning in an organization. It helps the organization comply with tax laws and financial activities, reducing the risk of penalties

• Data perfection: Traditional accounting systems or manual entry always consume time and give errors. But automated accounting software saves time and provides accurate data.
• Time & Money saving: The Automation process of Accounting Software save time & money because it automatically update reminder and payment process.

• Integration with Adaptable Applications: It is easier to integrate with different apps, which reduces unnecessary related work and improves efficiency, helping any business organization provide better service and real-time support.”

• Security: Accounting software carries sensitive information, so it needs data security. Cloud accounting software storage is much more secure against unauthorized access, data loss, and physical data damage.

• Chart of Accounts: Chart of Accounts is a list of all financial accounts in any business organization’s general ledger.
• Configuration of General Ledger: GL is very important for finding bank, vendor, customer, account class, subclass, etc. easily.
• Account Class: General accounting generally builds up eight account classes. But an account class could be a group combination of asset, liability, income, and expenses.
• Cost Centre: Any organization uses a cost center as a function which does not add directly to profit but operates expenses for comparison to the budget.
• Opening Balance: This is the first entry of any organization’s accounts. It is an amount of money at the start of a specific accounting period.
• General Voucher Posting : There are some voucher we can use below:
• Receipt Voucher: When you receive money after sales, the accounts department gives a receipt voucher entry or verifies it.

• Payment Voucher: When an organization purchases something, it gives a payment voucher entry or verifies it.

• Journal Voucher: We can call it JVs. It is an adjustment voucher to complete the transaction.

• Contra Voucher: A transaction-solving voucher between cash and bank is called a contra voucher. This voucher is necessary to reduce VAT and tax issues.

• Cash Book /  Day Book
• Bank Book
• Trial Balance
• Income Statement
• Statement of Cash Flows
• Statement of Changes in Equity
• Profit and Loss account ( P & L)
• Tax Preparation Report
• Bank Reconciliation Report

Every business organization needs accounting software to facilitate business growth, planning, and decision-making. Depending on the business size, accounting software reduces costs, provides data security, and is easy to use, optimizing financial management systems. In the digital world, cloud-based accounting is most helpful in any organization for a quick reporting system, top management financial security, and support.