For processing the accounting transactions, an application software called Accounting software is used. For dealing the particular areas in the accounting, special modules and the sections are included in the accounting application.
Lots of accounting software are used in the market, one should find the better software which is needed. Depending on the requirements, the software are differentiated into many categories.
Some of the categories of accounting software are:
- Personal Accounting software: The software which are designed for the home purposes are called as the personal accounting software. Simple account reconciliation, for the management of the budgets, accounts payable transactions are performed in this type of software.
- Low end Accounting Software: For the applications at the low end business markets, inexpensive software is enough for providing the basic accounting functions. These low end suppliers are used for serving a single national market apart from serving multiple national markets as well as it is characterized by single entry products. Security is not provided by some of the low end accounting software.
- Mid Market Accounting Software: Here unlike the low end markets, mid market will serve accounting in multiple currencies. Apart from the functions which are provided with the common accounting software, the software in this market provides an enhanced features like Industry standard robust databases and reporting tools, tools for extending the application.
- High End: These can be modified according to the requirements of each and specific business. These are used for satisfying the needs of individual specific company purposes. The ERP software comes under this category and it is the expensive business accounting software. When compared to the low end and mid market this software needs a long implementation period.
- Vertical Market:Business accounting software which are designed for specific applications for a specific industry. Examples include banking, construction, medical, non profit, point of sale etc.For providing hybrid solutions, enhanced accounting software is used. Some of the companies which have multiple locations need to grow, then those cases, software with combined features of Mid market and High end software are needed. Then in those cases this software may be useful.
These are the different types of accounting software used at various places.