Accounting software is one type of business application software program that records as well as processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It could be developed in-house by the organization or corporation using it, could be bought from a third party, or could be a mixture of a third-party application software package with local modifications. It varies significantly in its sophisticatedness and price tags.
There are many brands of business accounting software for small and mid-size companies. Some of the top popular brands are Peachtree Complete, Netsuite Small Business, Cougar Mountain, Bookkeeper, MYOB Business Essentials, Simply Accounting, CYMA IV, DacEasy, BottomLine Accounting, Quickbooks Pro. With the many choices, it may be difficult to choose which accounting packages is suitable and suit the needs of your small business. Here are some questions to ask when evaluating the accounting modules in small business accounting software.
Accounts Receivable module
Does it have functions you may need to do standard invoices, customizable invoices, email invoicing, print invoice shipping lables, estimate shipping costs, track shipments, specify shipping methods, accept credit cards, process recurring transactions and calcualte finance charges.
Accounts Payable module
Can it process Purchase Orders/Quotes, customize purchase orders, issue vendor credit memos, issue checks, customize vendor checks, print checks and print 1099 and 1096 forms.
Inventory Module
Check if the module can track item by number UPC/SKU/Item, include item image, set the item as active/inactive, specify stock locations, track inventory, set inventory levels, has a choice of FIFO/LIFO/average cost/specific cost costing methods, create drop shipments, inventories assemblies and inventories adjustments.
Banking/Reconciliation Module
Can the module reconcile accounts, prepare bank deposits, void existing checks and carry out electronic deposits.
Payroll/employee module
check if the module can set wages salary/hourly, has pay frequency weekly,monthly etc, can set eomployee status as active/inactive, has direct deposit function, include 401K deduction, automatically calaculate payroll taxes, has tax tables, print W-2 & W-3 forms, print 941 & 940 forms