Types of Accountancy Software
Not all accountancy software are made the same. Extra features included, free customer support, ease of use, etc. vary greatly from one software to another, depending on the chosen manufacturer. But they also depend on the type of accountancy software you choose. In order to help you understand your options and make the best choice possible for your business, we will take a closer look at different types of accountancy software available.
If you have decided to replace your accountant with a software, you can choose between the following types of accountancy software:
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Personal accountancy software. Like its name suggests, it is not exactly intended for business owners but for home users instead. It is the simplest and most inexpensive type of accountancy software. Some personal accounting software come with a wealth of highly useful features but they are not a good choice for business owners. They are an excellent idea, however, to manage your personal finances.
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Low end accountancy software. Just because it is “low end” that does not necessarily mean it is inferior. Low end accountancy software allows you to perform the basic accountancy functions and record your transactions in the single-entry bookkeeping system. If you run a small business, this type of accountancy software may not be a bad solution. Be sure, however, that it complies to the GAAP (Generally Accepted Accounting Practice).
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Mid market. This type of accountancy software is the most popular choice among business owners because it is somewhere in the middle between low and high end packages when it comes to both the price and functionality. In addition to the ability to perform the basic accountancy functions, mid market accountancy software typically also comes with various highly useful tools which enable you to be your own accountant and establish a full control over your finances. It often also allows accountancy in more than one currency.
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High end accountancy software. It is the very best of all accountancy software types. It is often sold under the name enterprise resource planing system because it encompasses everything from accounting to human resources, manufacturing to customer relationship management, etc. Its main downside, however, is its relatively high cost.
In addition to the mentioned four types of accountancy software, there is also the so-called vertical market which refers to accountancy software that is specially designed to meet the requirements of specific businesses. One of the best examples is the so-called medical accountancy software which is mostly used by private medical and dental practices.
A special category is online accountancy software. Rather than being installed to your computer, it is accessed via the Internet. It has become increasingly popular choice in the recent years because it offers a wealth of functions for a relatively low cost and a much higher level of safety than commonly believed.
In the end, you have the ability to choose between ready-made and customizable accountancy software, and a combination of both. Solutions which are tailored to meet the customer’s specific needs are of course more expensive but they are also more useful.