Term: Accounting software


Accounting software is a system that allows you to record all incomes and expenses of a company. Modern day accounting softwares like Xero are websites that you don’t need to install.

Key Takeaways

  • An accounting software is a type of system that allows you to manage all finances of a company.
  • It also allows you to manage your company’s finances. The accounting software sends invoices and collects payments, and generates financial reports.
  • Some popular options are Xero and Quickbooks.

What is accounting software?

Accounting software is a technology system that helps accountants. Accounting software manage financial transactions. They record, categorise and manage all financial transactions of a company.

Old accounting software stored data on mainframe computers. But newer accounting softwares is on the “cloud”. This means that a remote server stores your data. You don’t need to maintain your own data – that’s the accounting software company’s job.

What features does an accounting software have?

Accounting softwares have the following features:

  • Add income or expense transactions
  • Add journal entries
  • Do reconciliation. Check that the balance in accounting software matches the balance in your accounts.
  • Upload and keep a record of receipts and invoices
  • Create invoices
  • Automatically send invoices to clients
  • Integrate with banks to automatically add transactions to save time with data entry
  • Generate financial statements