Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system. It may be developed in-house by the company or 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. It varies greatly in its complexity and cost.
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 order for the supply of inventory.
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