RESEARCH WORK ON ACCOUNTING SOFTWARE

GENERAL INTRODUCTION AN OVERVIEW

The most popular system of recording of accounting transactions is manual which requires
maintaining books of accounts such as Journal, Cash Book, Special purpose books, ledger and so on.
The accountant is required to prepare summary of transactions and financial statements manually.
The advanced technology involves various machines capable of performing different accounting
functions, for example, a billing machine. This machine is capable of computing discount, adding net
total and posting the requisite data to the relevant accounts. With substantial increase in the
number of transactions, a machine was developed which could store and process accounting data in
no time. Such advancement leads to number of growing successful organisations. A newer version of
machine is evolved with increased speed, storage, and processing capacity. A computer to which
they were connected operated these machines. As a result, the maintenance of accounting data on a
real-time basis became almost essential. Now maintaining accounting records become more
convenient with the computerised accounting.

The computerised accounting uses the concept of databases. For this purpose an accounting
software is used to implement a computerised accounting system. It does away the necessity to
create and maintain journals, ledgers, etc., which are essential part of manual accounting. Some of
the commonly used accounting softwares are Tally, Cash Manager, Best Books, etc. Accounting
software is used to implement computerised accounting. The computerised accounting is based on
the concept of database. It is basic software which allows access to the data contained in the data
base. It is a system to manage collection of data ensuring at the same time that it remains reliable
and confidential.

DEFINITION OF SOME KEY TERMS

1. ACCOUNTING; Accounting is the recording of financial transactions along with storing,
sorting, retrieving, summarizing, and presenting the results in various reports and
analyses. Accounting is also a field of study and profession dedicated to carrying out
those tasks.
2. SOFTWARE; Software is a collection of instructions that tell a computer how to work. This is
in contrast to hardware, from which the system is built and actually performs the work. At
the lowest programming level, executable code consists of machine language instructions
supported by an individual processor—typically a central processing unit or a graphics
processing unit.
3. COMPUTARISED ACCOUNTING; Computerised accounting system refers to the system of
maintaining accounts using computers. It involves the processing of accounting transactions
through the use of hardware and software in order to keep and produce accounting records
and reports.
4. ACCOUNTING SOFTWARE; Accounting Software is a software program that records business
transactions and processes transactions within functional modules and provides the
necessary information. It functions as an information accounting system.

Benefits of Using Accounting Software:

a) Speeding up the information recovery process.

b) Adding flexibility in the bank reconciliation process,

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c) Automatically planning Value Added TAX (VAT)/Goods and Services TAX (GST)
d) Save time and minimize errors
e) Provide Computerized Invoice, Money Receipts

EXAMPLES OF SOME ACCOUNTING SOFTWARES

1) FreshBooksVISIT WEBSITE

Accounting software FreshBooks is a fully-featured and simple client invoicing and time-tracking
system used by more than 5 million businesses around the world. Ideal for freelancers and small
businesses looking to fast track their sales cycle and keep their processes in line with standards and
regulations. The solution is well integrated and mobile-friendly.

2) NetsuiteVISIT WEBSITE

Cloud-based ERP and accounting software NetSuite ERP is designed primarily for small to midsized
businesses. Boasting a comprehensive suite of inventory, accounting, warehouse management,
order management, and CRM tools, the solution streamlines end-to-end back-office processes from
sales to CRM to ecommerce workflows. Moreover, NetSuite ERP provides built-in reporting and
business intelligence tools that provide real-time financial visibility across the business.

3) Tipalti

Cloud-based accounts payable software Tipalti is a robust solution designed to automate the end-to-
end accounts payable process. The solution streamlines global payable operations, saving suppliers
huge amounts in annual international bank transfer remittances. Some of its notable features
include supplier management, tax calculations, payment remittance, regulatory compliance
management, invoice automation.

4) Sage 50cloud

Online accounting solution Sage 50cloud is an easy-to-use system for small companies and medium-
sized businesses. A desktop app with cloud capabilities, it comes equipped with tools for tax
preparation, budget management, inventory tracking, cash flow monitoring, and invoicing
automation. What’s more it comes with activity tracking tools and visual dashboards that let you
oversee employee performance, budget status, as well as revenue trends. That said, this platform
can surely streamline the way you perform your accounting responsibilities.

5) QuickBooksVISIT WEBSITE

Cloud-based accounting software QuickBooks Online offers an all-in-one accounting platform for
small businesses, freelancers, and independent accounting firms. This accounting solution offers
robust tools, such as automated tax calculations, expense tracking, invoice management, balance
sheet reporting, bill management, sales monitoring, and more. A product of Intuit, QuickBooks
Online integrates seamlessly with other Intuit applications including QuickBooks Payments and
QuickBooks Payroll.

6) RossumVISIT WEBSITE

Cloud-based accounts payable tool Rossum concentrates on advanced automation of document

management. This software solution is powered by a self-learning technology that is designed
specifically for automating the end-to-end process of document gathering, data collection and

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extraction, and the processing of invoices. Furthermore, this platform is capable of handling
different types and layouts of documents and invoices without the need for templates.

7) Xero

Cloud-based accounting software Xero is an intuitive all-in-one solution primarily geared towards
small businesses. Xero helps businesses to process payments faster, save time on data entry, and
make better business decisions. Features like invoicing tools, bank reconciliation, financial reporting,
and more are available within a user-friendly platform. Xero can be integrated with over 800 apps to
make the solution customizable for your needs.

Types of Accounting Software

1. Personal accounting

Personal accounting software is mainly aimed at home consumers, facilitating accounts payable-type
accounting activities, handling budgets, and simple account reconciliation at the market’s cheap end.

2. Low-end market

Cheap application software allows most general business accounting functions to be performed at
the low end of the business markets. Suppliers often serve a single domestic market, while larger
suppliers provide separate solutions in each national market.

3. Mid-market

The mid-market covers a wide range of business software that can meet multiple national
accounting standards needs and enable multi-currency accounting.

The applications may provide integrated or add-on management information systems in addition to
general accounting functions, and may be geared towards one or more markets, for example with
integrated or add-on accounting modules for projects.

4. High-end market

The most complex and expensive business accounting software is often part of a vast suite of
software often referred to as enterprise resource planning (ERP) software.

5. Software as a Service (SaaS) accounting software

With the advent of faster computers and internet access, accounting software providers were able
to build accounting software that was paid for at a monthly recurring charge rather than a higher
upfront licensing fee (SaaS).

CHARACTERISTICS OF ACCOUNTING SOFTWARES

(i) Readymade software
These packages are standardised or readymade packages which can be used by the business
enterprises immediately on procurement. These packages are used by small and conventional
business enterprises. Cost of installation and maintenance is very low. Training cost is negligible
and sometimes the vendor provides free of cost training. These softwares are used by those
enterprises where financial transactions are simple, uniform and routine in nature. Few

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examples of such type of software are Tally, Busy, Marg, Profitbooks.

(ii) Customised software
Many a time, it is not possible that ready-to-use packages suit the requirements of the business
enterprise. In such circumstances, customised packages may help the business enterprise for
fulfilling their requirements. Customised packages can be modified according to the need of the
enterprise. For example, software can record attendance of the employees and on the
requirement of the customer it can also count the absence of employees in a month, etc.
These packages are used by medium or large business enterprises. Cost of installation,
maintenance and training is relatively higher than that of ready-to-use packages. These softwares
are used by those enterprises where financial transactions are somewhat peculiar in nature.
(iii) Tailormade software
Large enterprises have their own way of functioning. For effective management information
system, varied and specific information is frequently required by many users which may not be
needed in case of small or medium scale enterprises. In such enterprises, depending upon their
functioning, need based softwares known as tailored packages are installed. The cost of these
packages is very high and specific training for using these packages is also required.

FUNCTIONS OF ACCOUNTING SOFTWARE

1. Accounting – Accounting is the main component of each system in this category and the one
you should be looking for first when choosing a reliable solution. What comes to mind when
we hear ‘accounting’ are general ledger, fixed assets, accounts payable & receivable, and
bank reconciliation. These are, of course, the basic and most important ones, while
advanced systems have more bells and whistles to offer to their users.
2. Billing & Invoicing – There are accounting systems exclusively devoted to billing and
invoicing, but most of them still treat similar operations as an integral module of any finance
operation. Thus, they let customers automate mundane collections, adjust operations to
new and effective payment methods and industry standards, and prepare accurate and in-
time invoices for their clients.
3. Budgeting and Forecasting – This is also a common bundled module in most accounting
systems, which calculates and interprets finance performance for the current year and helps
estimate the budget of the upcoming one. Using such a system, companies can prepare their
estimates and set up feasible and optimistic sales targets.
4. Management of fixed asset – Both as a separate tool or an inclusive module, fixed asset
management helps manage financial data much more accurately. The module combines
features such as audit history, cost records, depreciation calculation, resource allocation,
and many more.
5. Payroll management – With an array of payroll features, you will be able to calculate and
process employee payments, prepare and print their checks without delays, and respond to
all active legal and tax commitments without errors. There will be systems out there
exclusively devoted to payroll management, used by enterprises and high-tier performers to
remind them of their financial obligations.

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Modules of Accounting Software

These are core modules:

 Accounts receivables
 Accounts payable
 General ledge
 Billing
 Inventory
 Bank book

These are non-core modules:

 Debt collection or outstanding,

 Payment performance,
 Expenses,
 Reports etc.

Implementation
Implementation can in many cases be a bigger factor than the actual software chosen when it comes
to the overall cost of ownership to the company.Most mid-market applications and bigger ones are
marketed exclusively to resellers, developers, and consultants. In general, these companies pass a
licensing fee on to the software provider and then charge the customer for installation,
configuration, and support services.Customers can usually depend on charging approximately 50-
200 per cent of the software’s price for installation and consulting fees.Many companies specifically
distribute, work with, and assist customers, removing the reseller.

THINGS TO CONSIDER BEFORE GETTING AN ACCOUNTING SOFTWARE

1. An integrated invoicing module. Regardless of the core operations, your accounting system
should be complete (inventory management, for instance), and, if possible, you should
always acquire a system that offers at least some basic billing and invoicing functionality.
This way, you will spare yourself the trouble of purchasing additional software or migrating
data to another system.

2. Customization. There is no “one-size-fits-all” accounting system (in fact, this is one of the

most diversely targeted software category), and the reason for thIS is that each company
runs specific finance calculations and adheres to a different set of rules. If you’re unable to
find a particular system that matches your business model (and that will hardly ever
happen), look for a flexible program you can adjust to your operations, one that can grow
with your business.

3. Ease of use. There is nothing simple about accounting procedures and calculations, so the
least your new accounting system should be able to do is to give you an intuitive
environment to work in. This means information should be arranged neatly, and functions
should be available on a single dashboard. You should complete operations within minutes
following a navigation pattern you already know.

4. Security. As we already pointed out, accounting systems play around a business’s most
sensitive data, namely the numbers it depends on. To ensure that making calculations and

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sharing data within the system is bulletproof, choose a reputable vendor and check security
mechanisms in advance.

5. Connectivity. At the point where you’re buying an accounting solution, you will already have
an array of software pieces to put up with it. To avoid changing your entire software
infrastructure for the needs of a single program, do things the other way around—get a
system that integrates with the tools you have, or, in the best scenario, offers open API for
you to connect it with any system you want.

6. Mobile usage. Mobile-ready accounting systems are no longer a luxury only enterprises can
afford, so why not choose one for your needs? Most popular vendors nowadays offer native
Android and iOS apps for their users, where operability is just about the same as with the
desktop version of the system.

7. Pricing. The software logic applies again: the more a system can do, the more it will cost, so
if you can afford a fully-featured and ahead-of-its-time suite, go for it! You should know,
nevertheless, that quality accounting systems can be purchased at a fraction of that price,
and some of them are even available for free.

8. Reliable support. Most accounting software vendors pride themselves with knowledgeable

and fast-to-respond teams, but the truth is, you won’t know how efficient they are before
you’ve actually had an issue to submit. To prevent some bitter disappointment for the
money you’ve invested, test support in advance.

REFERENCES

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[1] M.I. Ajay Adhikari, “Firm characteristics and selection of international

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[3] B. Gullkvist, “Towards Paperless Accounting and Auditing,” E-Business

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[4] H. Sajady, M. Dastgir, H. Hashem Nejad, “Evaluation of the effectiveness

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[5] K. Saira, M.A. Zariyawati, M.N. Annuar, “Information System and Firms,”

International Business Research, 3(4), P28, 2010.

[6] R. Kouser, A. Awan, Gul-e-Rana, F.A. Shahzad, “Firm size, leverage and

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[7] E. Harash, “Accounting performance of SMEs and effect of of accounting

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[8] I.N. Ch.Yvonne, “The impact of accounting software on business

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[9] D.M.J. Wickramsainghe, R. Pemarathna, N. Cooray, T. Dissanayake,

“Impact of accounting software for Business Performance,” Imperial Journal

of Interdisciplinary Research (IJIR, 3(5), 1–6, 2017.

[10] Trabulsi, “The Impact of Accounting Information Systems on

Organizational Performance : The Context of Saudi ’ s SMEs,” International

Review of Management and Marketing, 8(2), 69–73, 2018.

[11] A.A.J. Abdallah, “The impact of using accounting information systems on

the quality of financial statements submitted to the income and sales tax

department in Jordan,” European Scientific Journal, 1(December), 41–48,

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