Basic accounting software should
enable the user to:
- Maintain a chart
of accounts in the general ledger.
- Have a transaction entry screen.
- Allow for lookups of past transactions and
- Have different modules for:
- Accounts Payable
- Accounts Receivable and Invoicing
software should also allow for:
- Accrual accounting.
The initial setup of any accounting software is developing the
chart of accounts. These are your account numbers you will
make journal entries, and should be divided into assets, expenses,
liabilities and equity accounts.
When choosing this kind of
software, keep in mind who is going to use it and how complicated and
expensive it is to set up and operate. Also, be sure the
has safeguards built into it such as password protection, the inability
to go back and change entries, and the ability of the software to
record the username of the person making entries in the system.
of the most fundamental and important things the software should have
is the ability to produce reports. All software will come with canned
reports, but are these reports what you need? How difficult is it to
create or modify reports? Is it necessary to hire a consultant to
modify reports, or can someone on staff do it?
produce huge time savings and improve analysis. It is important though,
that the software's total cost does not exceed the benefit.