Accounting is a backbone of every business. Accounting is a process of identifying, recording summarizing and reporting financial activities for making the decisions. All the financial statements help the decision makers for business improvements. Financial accounting focuses on the specific needs of decision makers external to the organization, such as stockholders, supplier, banks and government agencies.
It is very important to understand the terms used in accounting. Generally, an accounting software have the common vouchers like Payments, Receipts and Journal Voucher. Payment voucher is used for Payment for example Vendors party payment, general expense and payment transactions for capital withdraw. Receipts voucher is used for getting earnings from Customers and other income and Journal vouchers is used for balancing two different heads. For example, you want to withdraw money from bank to cash account you will pass the Journal Voucher payment withdraw from bank.
Here is the important to point is which software is best for accounting needs, I have 13+ years of experience in business solutions. I worked for Distributors, General Sellers like Cash and Carry, Manufacturers and other accounting solutions. As per my experience you can handle accounting for certain level with predefined solutions like QuickBook. You can keep the records of inventory with sale and also keep the records against services selling but for example if you are running a clinic you need a specific interface for keep the records of a patient and assign that patient to a Doctor for examine at this stage we can’t use the predefined, pre developed general accounting software. You can do it with few step maintain manually and rest of accounting part add in general accounting applications.
Well, here is another point that is costing of a software, of-course customized solutions involve a high cost for development and implementation but if you done it, your comfort zone will be high. Here are some open source and few or paid accounting solutions.
- QuickBooks (Pre-developed and popular Software used in the market. We are also providing QB Implementation with proper chart of accounts.
- Tally Accounting is an Indian based accounting software used in many organizations. People are using its free part for maintain the business accounting activities.
- FrontAccounting is another popular Open source software, you can use it free. I have seen many activities this software is maintaining.
I will update this article time to time mention different accounting terms and business natures. As I mentioned I have done so many projects in my country. I will explain different business natures here in detail
Thanks for reading my article. I try to write the terms as per my experience. I appreciate your participation in this article with the help of comments.