This buyers guide will help you understand the key features of finance and accounting software, the business benefits and challenges of using it, and accounting industry trends. It will also identify the users who most commonly use accounting software.
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This buyers guide will help you understand the key features of finance and accounting software, the business benefits and challenges of using it, and accounting industry trends. It will also identify the users who most commonly use accounting software.
Here's what we'll cover:
Accounting software is specialized application software that automates accounting and finance-related tasks. The software stores and analyzes accounting transactions within various functional domains of accounting and finance that relate to accounts payable, accounts receivable, general ledger, payroll, tax management, invoice and expense management, and other domains.
Below is a list of core accounting features:
| Features | Description |
| Accounts payable | Financial reports and dashboards help you keep tabs on invoice management and on the total debit billing transactions your business owes to suppliers and creditors. |
| Accounts receivable | Uses financial reports and dashboards to track the total amount of money that your suppliers or clients owe you. |
| Cash flow management | Helps in budget forecasting and bank reconciliation by monitoring cash flow in bank statements and in check and credit card transactions. |
| Tax and compliance management | Files taxes according to IRS requirements by calculating your tax obligations based on your small business revenue and business classification as S-corp or C-corp. |
| Payroll management | Helps your payroll department manage your staff salaries and tax deductions and calculates total salary based on the number of days worked. |
Here are some common ways accounting software can be applied:
| Application category | Description | Types of buyers |
| eCommerce | eCommerce businesses can overcome the challenge of large volumes of online receipts by integrating with an accounting solution that processes accounts payable. Accounting software can help streamline larger volumes of customer receipts and invoices through detailed dashboards and reports. | Customer relationship management (CRM) managers |
| Retail operations | Point of sale (POS) systems are vital for retail, helping organize the huge volume of financial data generated by financial transactions, including data related to inventory management and sales tax. | Retail operation managers |
| Fund management | Accounting solutions help nonprofit organizations track donations expenditures and grants to meet fund provider requirements. | Non-profit managers |
| Individual and corporate tax filing | Businesses can use accounting solutions to calculate tax transactions, file returns, and store tax-related forms in a database. | Self-employed |
QuickBooks Online is a cloud-based accounting solution that manages key accounting and finance tasks related to expenses, invoices, and financial reports on desktop and mobile. Key features include:
Dashboard of QuickBooks Online (Source: GetApp )
Some of the recent trends in accounting software include:
