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Fundamental accounting equation

Fundamental accounting equation

The fundamental accounting equation was developed by Luca Pacioli more than five hundred years ago. Nevertheless, it still forms the foundation of modern accounting with its... read more

Professional ethics in accounting

Professional ethics in accounting

Professional ethics has a very important role in accounting and all accountants are expected to behave accordingly. The financial statements, auditing reports and other... read more

Accounting profession and accountants' tasks

Accounting profession and accountants' tasks

There is nothing unusual in the accounting as in profession, and accountants are the same usual people as everybody else. There are several specific directions in accounting... read more

Inherent limitations in accounting

Accounting inherent limitations

It is often necessary to make estimations of reported accounting measurements that can not be measured at the time when the reports are being prepared. Accounting is not one... read more

Managerial accounting

Managerial accounting

Unlike financial accounting, the managerial accounting is used to serve specific sets of management needs. Based on managerial accounting information the management plan... read more

Financial accounting and financial accounting reporting

Financial accounting

Financial accounting is a type of accounting which main aim is to deliver accounting information to  wide set of users outside the company. Usually, analytics and other... read more


Accounting software

Accounting software is a program that records and processes different accounting transactions. Many of the functions that the software is capable of included accounts payable, accounts receivable, trial balance, and payroll. Accounting software functions as an accounting information system for the individual or company that is utilizing it. Some of the accounting software is developed in-house so that it is specifically tailored to the needs of the company, or it can also be purchased from a third party organization. Some companies also decide to use a combination of both in-house programs and third party programs. The complexity of the software and the cost range depending on what particular type of software the company is using. Since the 1990s the market for accounting software has been going through a consolidation because many suppliers have stopped trade or where bought out by larger companies.

Accounting software uses various modules to deal with all of the particular area of accounting. The seven most common software modules are: accounts payable, accounts receivable, ledger, billing, stock (or inventory), purchase order, and sales order. With these modules, a company can keep accurate records of the all the money that comes through the business, from what the company buys to how much the company earns from sales. Other modules that are not as standard include expense, payroll, timesheet, and purchase requisition. These types of modules are more involved into managing the money that goes the employees in the company. Some companies prefer to use other methods of tracking this information.

When choosing an accounting software ensure the software is customizable to your companies needs. A general suite of accounting software will be able to handle the financial ins and outs of the company, but a customized system enables a company to create an accounting system based on their specific company needs.

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21 of December, 2009. 10:36

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