ERP Systems

Small Business Accounting Systems

An accounting system is often defined as an organized set of manual and computerized accounting methods, procedures, and controls especially established in order to gather, record, classify, analyze, summarize, interpret, and present accurate and timely financial data for those who make management decisions. Accounting software is really application software that records and processes all kinds of accounting transactions within functional modules.  These modules help accounting professionals manage accounts and perform accounting operations. The software, which may be developed in-house or purchased from a specialized vendor, functions as an accounting system.

Accounting systems are becoming more and more important in today's business world as ERP is becoming the epitome of how best businesses operate. Initially, only accounting departments in large businesses employed accounting software, but now there are programs for all sized businesses and vendors are even promoting Small Business Accounting Systems.

Accounting ERP software can make companies run smoother and more effectively, even small companies. Owner/Managers of small businesses tend to do it all, and of course that includes keeping the books. Whether it’s the business owner someone else on staff doing this work,  be assured that small business accounting software can prove invaluable as far as organizing and maintaining accounting information for the business.

There are various formats of Small Business Accounting Systems in the market. The simplest one are single-entry accounting systems that automate tasks like check writing and record keeping, and the next level are double-entry systems that include functions for general ledger, accounts receivable, and accounts payable. There is yet a third level of sophistication which includes functions for payroll, inventory, invoicing, fixed assets, sales analysis, and time billing. There are programs which can be saved on to a hard drive and others which are based on the Internet. The first type requires someone to sit at the computer where the Accounting System has been downloaded, whereas the second type is accessible from any computer with the proper password authorization.

One, very highly touted Small Business Accounting System is Sage MAS 500. This is a Microsoft program that includes accounts payable and receivable, consolidations and allocations, management of more than one currency, cash management, and accounting for assets and inventory. Another popular system is Made2Manage.  This accounting software system offers businesses the tools needed to manage customer orders and sales, control inventory, manage materials, take care of job orders, and track quotes and estimates given to customers. Customers have rated it very user friendly for the small business market.

Written by :

Amy Cruz