Last Updated on : 30 Dec, 2021
Accounting software is a computer application used to record and process organisations' financial data. Accounting software assists accountants in recording and broadcasting a firm's fiscal transactions. It provides detailed tracking of every last spent and reduces the chances of human error.
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Found our list of Accounting Software helpful? We’re here to help you make the right choice and automate your business processes. Let’s discover some of the essential factors that you must consider to make a smarter decision!
Accounting software automates all financial and accounting processes of a business. The software helps record, analyze and interpret financial information transactions. You can automate the manual data entry tasks and prepare transactions quickly using accounting management software.
Top accounting software in India for small businesses and big enterprises helps manage account journal, general ledger, payroll, and trial balance, among many others. Accounting systems can also be used for preparing financial reports and filing GST returns without depending on any third-party application.
The accounting system further helps with invoice generation and sharing, and online payment. You can also track expenses, check the inventory levels and generate bills and reconcile bank accounts with accounting solutions.
Online accounting software functions just like any other SaaS (Software as a Service) solution. Every critical accounting financial information is stored in the data center, and all you need is an internet connection to access the information. It also ensures higher data security and backup, with restricted, role-based access to any financial information.
Web-based accounting software supports single ledger or common ledger accounting from anywhere and at any time. Instant data sharing through this application eliminates the chance of repetitive data entry. Accounting system ensures that every user gets access to the latest list of products, invoices, and customers to manage the general ledger, categorize transactions, generate payroll, and track payments efficiently.
Desktop or offline accounting software comes with a package installer in a physical storage device such as DVDs, external hard drives, and pen-drive. In addition, data related to the software is stored in the local computer.
Cloud accounting software allows you to access the data online with a single sign-in. Whatever work you do on the software is stored remotely on third servers. This enables users to access the accounting application from any location with an internet connection, and on any device, including smartphones and tablets.
Today, most of the accounting and bookkeeping software is available in cloud version for SMEs and big enterprises. Online accounting software companies also run software updates and fix bugs remotely, without any hassle. Moreover, a cloud accounting system does not require an in-house hardware installation and is a budget-friendly option for SMBs.
|Desktop Vs Cloud Accounting Software|
|Features||Desktop Accounting Software||Cloud Accounting Software|
|Number of Users||One Person at a Time||Multiple Users Simultaneously|
|Pricing||Up Front Fee||Monthly/Yearly Subscription|
|Accessibility||On the Installed Device||On Any Device with Internet|
|Customization||Less Customizable||More Customizable|
|Data Security||Self-Managed||Vendor Managed|
Spreadsheets: Google Sheet, OneDrive, and Microsoft Excel are often used by startups to list their income, expenses, sales and other financial data. For managing advanced accounting functions, businesses often opt for a complete accounting solution.
Online: Online accounting software is web-based or cloud software, which saves all your financial data on third-party servers. This type of business accounting software provides 24x7 access to business data with just a system and an internet connection.
Offline: An on-premise accounting software, which stores financial data on your in-house server. Its features can be accessed even when you are offline. These solutions are mostly available for free download or can be purchased with a one-time payment.
Small Business: This type of software consists of the basic accounting and bookkeeping functions for modern-day businesses. You can easily manage payroll, billing, invoicing and reporting needs with small business accounting software.
Enterprise: This application includes a package of advanced accounting management features like sales and purchasing, reconciliation, customer relationship management, business intelligence, and more.
Commercially Available Software: This type of accounting software caters to the needs of different industries and provides standard reports and features. However, its features can be moderately configured as per the specific needs of any industry.
Billing and Invoicing Software: Accounting software with billing and invoicing functionalities streamlines activities like invoice creating and sharing, automated payment reminders, payments and billing through multiple modes, etc.
Payroll Software: It is used to automate processes related to employee salary processing, deductions, loans, advances, claims reimbursement, overtime, etc. This software also generates automated payslips and helps with tax calculations.
ERP Software: This is a broader software category with accounting as one of the major functions. Along with accounts management, ERP systems also help with procurements, material planning and inventory management.
Chart of Accounts: Chart of Accounts is available with the best accounting software packages. It is basically a complete list of ledger accounts that provides an overview of a business’s transactions. The chart is arranged using categories like expenses, income, liabilities, assets and capital.
Balance Sheet Reports: Balance sheet and profit/loss reports can be created easily with an accounting application. The reports are helpful in highlighting the profitability ratio, the expense incurred, and income generated.
Cash Flow Statements: Accounting system analyses the transaction records for producing cash flow statements. You can do this for maintaining the bookkeeping record on a quarterly and monthly basis.
GST and Returns Filing: This particular module helps you file GST returns seamlessly by pushing transactions directly into the GST portal. Make your business GST compliant by preparing and filing GSTR-1, GSTR-2, GSTR-3, and GSTR-4 return online effortlessly.
Debt Collection: Through the debt collection module, you can keep track of whether the overdue bills have been collected or not. You can also quickly identify and resolve issues that may be affecting the debt collection process.
Credit Management: Credit management is required for handling payables and receivables. You can also use this module for defining credit limits and periods for every customer.
Banking: Reconciliation of bank statements with an accounting system is easy and so is managing the bank accounts. The module also makes cheque printing easy for making payments.
Budgeting and Forecasting: By the end of a financial year, accounting programs help assess your business performance and set a budget for the next year. Based on your budget, you can establish sales targets and assign the capital for different expenses.
Payroll: Payroll accounting software lets you process employee payroll, expenses, and reimbursements. This module also helps in the preparation and printing of cheques while taking care of all legal and tax obligations.
Inventory: The main purpose of an inventory management module is to keep track of your stock levels. You can sort out issues related to procurement, availability, and movement of your goods. Also, you can keep a close eye on your inventory to avoid overstocking or understocking.
Project Accounting: This is a customized module found in top accounting software and is used primarily by project management and deployment teams. Accounting programs helps in making project estimates based on the overheads and costs pertaining to labor, material, and equipment.
Fixed Asset Management: This module helps in the management of a company’s financial data related to fixed assets in a more accurate manner. It helps in taking care of audit history, cost records, depreciation calculation, resource allocation, etc.
Billing and Invoicing: Accounting ERP software helps automate several routine tasks. It helps generate invoices quickly and sharing with the clients for timely payments.
Tax Management: App and desktop-based accounting software helps in carrying out tax calculations automatically, along with tax reporting and integration of multiple tax rates. You can easily collect tax information from all financial documents into one single repository to generate reports necessary for tax filing.
Receivable and Payable: This module assists in managing customer invoices and processing customer payments. This module is chiefly used to create bills or invoices for customers. You can also keep a tab on individual deposits to bank accounts so that deposit information can be uploaded and applied to customer accounts automatically.
General Ledger: Without the general ledger, you won’t be able to create vital financial documents, such as trial balance, balance sheet, and profit and loss statement. This module is used to record financial transactions. It helps create a trail of information needed for audit purposes.
Billing: Billing is an important functionality of any top accounting system. Billing and accounting software help get timely payment through payment links on invoices.
Accounting Made Easy: The major benefit of accounting system software is that it enables even the non-accountants to understand and analyze their financial data. You don’t require any special training to execute your accounting operations. And you get to manage accounting functions in compliance with the legal standards of your state/country.
Mobile App to Manage Accounting Functions on the Go: The best accounting apps on Android and iOS devices help you manage financial data and transactions on the go.
Increased Productivity: By migrating your financial data to an accounting ERP software, you can automate and streamline your mundane tasks, such as collection, organizing, and analysis of your most sensitive data.
Tax compliance: Accounting system helps adhere to tax regulations. The tax rules can be pre-set and are taken care of by the vendors whenever an update happens. It also acts as a source of information pertaining to audit and tax, making your job easier.
Accurate Forecasting: To analyse your financial numbers, you need the best accounting solution. It’ll assist you in understanding the situations where you need to cut expenses or where you should make investments. This will help give a clear view of your present financial scenario, helping you devise innovative strategies to funnel resources in the right direction.
Financial Data Security: An organization’s financial data is considered critical and must be prevented from falling into wrong hands. This is where an accounting solution comes in handy, helping you keep your data secure either through maintaining a backup or having multiple security levels for accessing sensitive data.
Cost Savings: By automating administrative tasks and core calculations, you won’t have to devote valuable resources or outsource finance management to a financial expert.
Secure Billing: Billing and payment becomes secure with this software. The best billing and accounting software supports multiple payments with industry-grade standards.
An ideal accounting software solution with features well-suited for your business has the potential to reduce time, effort, and scope of errors significantly. However, it’s important to keep the following points in mind before choosing any accounting application for your business.
Cloud-based applications bring a gamut of benefits for modern businesses; whether small, medium, or large.
They can be accessed remotely and come with their own servers. This means that the cost of getting separate servers can be saved. Moreover, financial accounting software can automatically be upgraded on the server end by the service provider, saving you the time, cost, and resources that would have been spent on upkeep and maintenance.
One of the most prominent features of cloud-based accounting applications is that it can be accessed on any device- laptops, tablets and smartphones. Moreover, the classified and crucial data will be stored securely on cloud, in case of any mishap.
The cost of specialized accounting software solutions varies depending upon the tools and features that they provide. Therefore, it is important to carefully select the one that fits your budget while also fulfilling your organizational requirements.
The latest features in accounting software solutions will help in automating diverse financial management processes. For instance, a software solution may provide remote access, and options for online payments through third-party software integration. You can ask for selective or full accounting features as per your specific process requirements. Budget is quite an important factor when you are comparing top accounting software for small businesses in India. Cloud-based accounting systems prove to be a more profitable option in this scenario.
Last but perhaps the most crucial of all, it is highly recommended to take your accountant’s advice before choosing software. In the end, it will be the job of your accountants to work with the accounting system software.
Hence, they would have a better perspective on which software is best for the business. In addition, they would also need a first-hand understanding of the software through product demos.
Accounting tools offer modules, which are crucial for finance management, budgetary allocations and expense analysis. Popular accounting tools work by:
Generating financial reports: Financial accounting software generates reports like balance sheets, cash flows and income statements for analyzing the profits earned.
Analyzing cost allocations: It helps businesses undertake cost allocation analysis. This is essential for assigning costs to specific goods and services.
Managing the budget: It allows businesses to set financial goals on a yearly/semi-annual basis and assigning the budget for specific tasks.
Performing fund flow analysis: Financial accounting tools help perform fund flow analysis to determine if the funds have been utilized properly.
Number crunching is the first step when it comes to making sense of your financial data. This is where an accounting solution comes into the picture. Business accounting software gives financial numbers a meaning, so you can decide whether you need to cut down on expenses or start pumping up investments.
By using an accounting software solution, you’d have a clearer overview of your present financial state. This, in turn, would help you devise strategies to grow your business to new heights by allocating resources smartly.
Top accounting solutions automatically generate financial reports, which include payables, receivables, expenditures, profit and loss, and more. With such reports, accountants and business owners can minimise the time required in fetching data manually and focus on other core tasks.
Accounting software facilitates firm credit control with a clear picture of who owes money to your business. Accountants and small business owners can take actions to clear overdue accounts and seek out payments. Thus, the software ensures that your cash flow is not affected because of inaccurate credit information.
In addition, you can use the latest accounting software to send recurring invoices, alerts, and notifications, which will save your time. These reminders with unpaid invoices also include click to pay button, which results in faster electronic payment. Further, you can effortlessly execute account reconciliation by matching transactions.
If you have to submit quotes or estimates, just go for an accounting system that can convert those documents to invoices in a few clicks. It also helps reorder products when your inventory levels drop below a set threshold by generating purchase orders automatically. Basically, you can automate a great many tasks with accounting applications.
Top accounting software vendors in India cater to the financial management needs of different businesses. While some cater to the SMBs with a package of essential accounting software features, others provide additional accounting software modules to manage the complex aspects of financial management.
Accounting software for small businesses often comes with custom modules and capabilities. However, accounting software for large enterprises provide standard modules and features that cater to the diverse financial management tasks across silos.
|Best Accounting Software for Your Business|
|Supported OS||Android, Windows & Mac||Windows & Android||Windows & Mac|
Number crunching is the first step when it comes to making sense of your financial data. This is where an accounting solution comes into the picture. Business accounting software gives numbers meaning, so you can decide whether you need to cut down on expenses or start pumping up investments. By using accounting system software, you’d have a clearer overview of your present financial state. This, in turn, would help you devise strategies to steer your business to new heights by allocating resources prudently.
In addition, through the magic of innovation, you can program your accounting solution to send recurring invoices, alerts, and notifications, helping you save time. You can effortlessly execute account reconciliation by matching transactions. Have to submit quotes or estimates? Go for accounting systems that can convert those documents to invoices in a few clicks. Reorder products when your inventory levels drop below a set threshold by generating purchase orders automatically. Basically, you can automate a great many tasks with effective accounting software.
Any business which needs to keep track of income and expenses can benefit from accounting software. Accounting software records and tracks every financial transaction and provides an accurate picture of your business health.
Here are a few industries that can benefit mainly from an accounting software:
Accounting software can majorly be categorized into three types depending on the deployment types.
Cloud-based accounting software are the preferred option for small businesses. These are hosted in the cloud and do not require any installation or on-site maintenance. The requirement can easily be scaled by upgrading the subscription.
In this type of deployment, accounting software is installed on a private network. It is generally preferred in cases where the security and privacy of data are a significant concern.
This is one of the most common and widely deployed options for medium and large businesses. The software can either be used offline or through the web. A private cloud is created for the entire business data in a hybrid deployment, and users can access it from a centralized interface or a web portal.
Understanding the accounting software trends helps you procure software that won't get obsolete in the near future and provides your business a competitive edge. Here are the five latest accounting software trends that you should know.
Author: Kalpana Arya
|Accounting Software Cost|
|Best Accounting Software||Price||Ratings|
|Vyapar Billing Software||₹599 /Year||4.6|
|Miracle Accounting Software||₹8850||4.7|
|Marg ERP 9+||₹9558 /Year||4.3|
|Busy Accounting Software||₹10620 /Year||4.6|
Q1 - What is the best accounting software for small business?
Holded, Accounting Seed, Tipalti, Kashoo, Pabbly
Q2 - What are the types of accounting software?
Accounting software are classified into different categories such as invoicing & billing software, payroll software, financial ERP system, income tax software, GST software are available in the market.
Q3 - What is accounting software used for?
Accounting software is used for analyzing cost volume profit and cost variances. Accounting software uses revenue & budget variances for performing project appraisals and doing business forecasting.
Q4 - Do I need to purchase new IT infrastructure to use accounting management software?
No, you don’t have to. You simply need a computer device whether it may be a tablet, mobile, laptop or desktop with good internet connectivity and you’re good to go.
Q5 - What are the benefits of accounting software?
Accounting software is best for performing automated calculations for cost analysis and finance management. Accounting tools can also be used for storing sensitive data and reducing the possibility of manual error.
Q6 - Do I need to shell out any annual maintenance fee?
Annual maintenance fees are applicable only for on-premise software licences purchased by the company. If you’re paying subscription fees for cloud accounting software, you do not have to pay annual subscription fees on them.
Q7 - I need only single module of accounting software.
Yes, you can purchase modules as per your company requirements. If your primary need is totally your accounts, choose the general ledger module. Keep track of company cash reserves with accounts payable/receivable module. Basically, you can pick and choose which module you want and build from there or buy the full accounting software complete with all the works!
Q8 - How much does an accounting software cost?
Accounting software price depends on various factors like payment modes - monthly/yearly, no. of users etc. It is better to reach the vendor for customised pricing.
Q9 - What can accounting software do?
Accounting Software can automate any business accounting needs. Any business, whether it’s a large and small enterprise, confectionery, supermarket, MNC, educational institute, NGO, or your local Kirana shop, needs an accounting solution. With these accounting software, even your local grocery store can keep track of its expenses.
Q10 - What are the factors you should consider before buying accounting software?
You may first have to assure what your business requirements are. Check the features a product is offering and map them with your business needs. You can also select between on-premise and cloud-based accounting software based on your budget, existing IT infrastructure setup, etc.
Reliable support from an accounting software vendor and the ease of use are the other factors to be considered.