Finance Software

Finance software

Finance software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the organization using it, may be purchased from a third party, or may be a combination of a third-party application software package with local modifications. Accounting software may be on-line based, accessed anywhere at any time with any device which is Internet enabled, or may be desktop based. It varies greatly in its complexity and cost.

The market has been undergoing considerable consolidation since the mid-1990s, with many suppliers ceasing to trade or being bought by larger groups Modules Accounting software is typically composed of various modules, different sections dealing with particular areas of accounting.

Among the most common are:
Core modules
Accounts receivable—where the company enters money received
Accounts payable—where the company enters its bills and pays money it owes
General ledger—the company’s “books”
Billing—where the company produces invoices to clients/customers
Stock/inventory—where the company keeps control of its inventory
Purchase order—where the company orders inventory
Sales order—where the company records customer orders for the supply of inventory
Bookkeeping—where the company records collection and payment
Financial close management — where accounting teams verify and adjust account balances at the end of a designated time period
Non-core modules [citation needed]
Debt collection—where the company tracks attempts to collect overdue bills (sometimes part of accounts receivable)
Electronic payment processing.