Industry-Specific Accounting Software  

In the olden days, maintaining all business finance operations meant recording numerals in a paper ledger. Today, computerized accounting systems are widely used not only by large companies but small businesses too as help to save hours of bookkeepers' and accounters' work time. But, it is not only one benefit of using accounting software. Accounting software also reduces, and even eliminates, errors and redundant data entry. As a result, there is an overabundance of offers on the market that are made by different software providers and individual developers. Therefore, it is not easy to choose an accounting software system that meets your company's needs the best.

It is possible that your company needs an industry-specific accounting software solution. You could ask, "Does accounting differ from industry to industry?" Accounting statements are not greatly diverse throughout multiple industries. All companies need strong financial management to get a profit and reach key goals in business. But, transactions used for creating financial reports of different industries could vary dramatically. Because of this, you should think about whether you need to take the accounting system with the specific features to meet your business necessaries and 

requirements. What is the difference between a general accounting software system and an industry-specific software solution?

Accounting software systems designed specifically to meet the needs of some concrete industries include features that better provide the business activities of the sector(s). Manufacturing, services, distribution, and non-profit industries require solutions for managing complex processes. Such systems usually provide specific tools for job estimating and costing that are critical for successful management and cannot be provided by the general accounting software systems. For instance, inventory management is a significant component for retail and construction businesses, but not for lending companies. In another hand, a significant benefit of using general accounting software is its affordability.

The price of computer programs can vary within the broad spectrum. Following IT technologies, software developers saw the opportunity to develop irrespective, industry-specific solutions to address key features. For large companies, the cost of software customization might be not an issue, but small businesses are not able to pay a high price. If you own a small company that is on a tight budget, simple general bookkeeping/accounting software such as QuickBooks is the best accounting software for your small business. Any company, from a small business to large corporation uses an accounting software system to manage and control its finances.

Which system is the best for a company is dependent on its size and industry that determine various organization’s circumstances. However, when a company comes to choosing the right software, making a decision about which accounting software is the best for the company can be difficult since there are many offers on the market, and many accounting software packages differ slightly. What can the business owner help to make the right choice in selecting the accounting software system? The answer is easy, "Examining the current and potential company's needs in the future." A sole proprietor without employees can start by using a basic software package that handles invoicing and billing, tracking expenses, and producing the basic financial reports to satisfy the accountant and taxman.

Key tips for choosing the industry-specific accounting software system

• Create a list of features the software system should have to serve your business.

Most software systems include budgeting, invoicing, tax reporting, inventory management, payroll, contact (customer and vendor) management, sales tracking, credit card payment acceptance, and more. If the small business industry has specific accounting requirements, you should focus your attention on software providers that offer products designed specifically for concrete industries such as construction, field service, manufacturing, wholesale distributors, or others to meet the requirements of your business industry.

• Look for an accounting software system that can provide more capabilities.

Many accounting software systems are designed for easy use by people without an accounting background. It is natural because small businesses need fewer features than larger companies do. You should remember that your small business will grow and shortly you might need to have more robust financial features in your accounting software system to run your business. You need to be sure that the accounting software you are going to buy has modules you will be able to add later if needed. The commonly added feature to accounting software after a business grows is the payroll.

• Check the accounting software support options.

Do not forget to include the IT support costs into the company's accounting software budget. Some software providers offer fee-based support from the moment you start using their products. Others provide support without cost for a setup period so you can have help without additional expenses. After that, you will pay for support per use, quarterly, or on an annual basis. In any case, be ready to add the support costs to your expenses.

Main features provided by the accounting software package 

• Accounts payable: vendor management with advanced functionality, payment alerts, payment schedule, purchase order reconciliation, document attachment, and others.
• Accounts receivable and billing: customer accounts and credit management with advanced functionality, invoices creating, sales attributions, sold goods reporting, sales tax calculation, credit card payment support, returns management,
• Budgeting and forecasting.
• Cash management: cash flow support and analysis.
• Purchasing: vendor management, purchase orders, purchases requisitions.
• Inventory: stock counts, price management, barcoding, serial number tracking, location tracking, product movement history, stock level alerts, conversion of the measurement units, etc.
• General ledger and financial reporting: accrual-based accounting, balance sheets, profit and loss statements, flexible accounting periods, chart of accounts, flexible account codes,
• Payroll: check to print, federal forms (W2 and other), automatically calculating tax withholdings, benefits deductions (401k, insurance, and other), direct deposit, working time tracking, employee self-service, electronic tax filing, and more.
• Security: authentication and particular user privileges, protection of the customers’ data, automatic data back-up, locked reporting periods, and more.
• System: search functionality, migrating data, import/export tools, web browser, custom reporting, file size limits, report templates, multiple currencies, integration with other systems, mobile applications, keyboard shortcuts, multiple users, multi-entity, graphical dashboards, etc.