Accounting software is available in nearly as many shapes and sizes as there are company types. These are the main types of businesses that use accounting tools to manage their financial accounts.
Commercial accounting: The most common type, commercial accounting software is used by both individuals and for-profit businesses to manage transactions, equity, etc. Commercial accounting software is often best-of-breed software designed for SMBs, mid-size businesses, and large companies that don’t deal with complicated regulatory or tax requirements.
Nonprofit accounting: Nonprofit software is tailored for the specific needs of not-for-profit organizations. Sometimes called “fund accounting software,” it helps manage grants, tax-exempt transactions, and the stringent reporting requirements most nonprofit organizations face.
Enterprise accounting: The majority of enterprise accounting solutions are designed for entities doing business internationally, which means they need to manage regulatory and tax compliance with widely varying requirements. Frequently, enterprise accounting software is deployed as an ERP. Theoretically, an enterprise-level accounting solution could be required for a nonprofit organization.