What Is Software Testing

With a host of financial accounting software applications in the market today, it has become and more difficult to choose the right one for one's own use. While some these applications are more suited to perform financial accounting functions for big corporate organizations, other are more geared towards personal use. Some of these financial accounting software packages also fall in the mid category and serve to add value to small and medium businesses. All these software applications vary in features and prices as well. Going into the intricacies of these applications, all of them are typically comprised of certain common modules. The most common are:

Core Modules

• Billing: Also known as invoicing, this is the process that involves generation of sales invoices used to accompany goods or services.

• Accounts receivables: This is a series of transactions or which payments have not been received, involving sales made to one person, company or organization. While this achieved by writing an invoice and mailing it to a customer in a small or home organization, a big organization can have thousands of such entries.

• Accounts payable: This series concerns with payments required to be made to suppliers on account of various purchases. An average household achieves this by giving out cheques to electricity, cable or gas companies and other regular services.

• General ledger: Also referred to as the nominal ledger, this book is the main accounting record of any company or entity that follows double-entry book keeping methods. It mainly has account head like liabilities, fixed assets, revenue, expenditure etc.

• Stock/Inventory: This is the list of goods along with their status as per availability.

Other Modules

• Expenses: This keeps track of usage of assets or incurring of liabilities that reduce the owner's equity.

• Debt Collection: This is the module where a track is kept of bills overdue and their collection. In most financial accounting software, this is a part of bills receivables.

• Payroll: A statement of financials concerning wages, salaries, bonuses or advances paid.

• Inquiries: This is a module where one can look up the information on screen without being able to make any changes.

The above features broadly outline the workings of any business – small or big. While comparing financial accounting software packages for own use, one should take into account that the above features are already there. The rest of the features required would need to assessed from one financial accounting software to another in order to reach an informed decision before buying.