Accounting software which is also called accounting packages are as follows:
Accounting Software : A variety of accounting software is available in the market. The most popular software used in India are Tally and Ex. An accounting software is an integral part of the computerized accounting system. But before acquiring any software it is very important to analyse the level of expertise of the people who would use it. Because eventually it is people and not the computer who are responsible for accounting.
The need for the accounting software arises in two situation namely:
- When the computerized system is replacing the manual system.
- When the computerized system already exists in the organisation and it is to be altered according to the recent changes.
There are various types of accounting software available in the market. However, the choice of the accounting software would depend upon the suitability to the organisation in terms of its accounting needs.
The accounting software are classified into the following categories :
- Ready to use software
- Customized software
- Tailor-made software
1. Ready to Use Software: It is also called as General Purpose Application Software as they are purchased from the market with no modifications.
Sometimes prepared program is more suitable than others. There are many types of software packages readily available in market. But the proper selection requires a lot of care and precautions, so that it should match our computer system, e.g., Tally.
2. Customized Software: We can ourselves prepare a software according to our requirement but, it does not mean that whole of the software is developed by the user groups. In fact, it is an improved form of “Ready made Software”. Here ready made software’s are changed a little to suit the needs of user. The word “customized” means making changes.
3. Tailor Made Software : Business enterprises usually employ a programmer for preparing a program. Until all bugs (errors) are not removed in the program prepared by him, he will continue to be employed in the enterprise. It will be quite expensive to afford even a little change in the earlier program. It may possible that the other programmer is not satisfied with the program prepared by first programmer. To avoid this problem business organisations first get the manuals (rule book) prepared according to the needs and nature of their business and then the programmer is instructed to follow the manual while preparing a program.
