What is an accounting program?

Accounting programs are necessary for each of the existing companies. All the accounting data of the company, for one or several years, are stored there. More specifically, it is a computer program that saves and processes accounting transactions. This program must follow the Generally Accepted Accounting Principles so that its operation is correct.

It is achieved through a third party, but many times the company itself may already have an accounting program.

Characteristics of accounting programs

There is a long list of features that this system offers. These characteristics are usually common in most programs, but sometimes they can have some different ones. The most commons are:

  • Accounts receivable: the company records the money it receives.
  • Accounts payable: in this section, the company registers its invoices and pays the money it owes.
  • Daily books: the "books" belonging to a company.
  • Billing: this section is where the company creates its invoices for its customers.
  • Stock / inventory: it records all the company's stocks and inventory control.
  • Purchase orders: the company creates its purchase orders.
  • Sales Orders - Here, the company records customer orders for inventory supply.
  • Cash control: registration of the company of its collections and payments.

Then we have other functions that are not so common to all programs, and that are integrated according to the needs of the clients. For example:

  • Debt Report: The company tracks collection attempts, and lists past due and unpaid bills.
  • Electronic payment tools.
  • Expenses: related to the expenses generated by employees.
  • Queries: the company looks for information about its employees such as registration or shares.
  • Payroll- Track wages, pay and related taxes.
  • Reports: accounting and financial information.

Accounting programs are indispensable for businesses. Therefore, it is advisable to assess which are the best accounting software to know which one suits our needs.

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