Accounting software
Accounting software is a computer program that maintains account books on computers, including recording transactions and account balances. Depending on the purpose, the software can manage budgets, perform accounting tasks for multiple currencies, perform payroll and customer relationship management, and prepare financial reporting. The first accounting software was introduced in 1978. Since then, the accounting software has revolutionized from supporting basic accounting operations to performing real-time accounting and supporting financial processing and reporting. Cloud accounting software was first introduced in 2011, and it allowed to perform all accounting functions through the internet. In recent years, blockchain technology  was introduced in accounting software, where it offers different ways of information keeping . Modules. Accounting software is typically composed of various modules, with different sections dealing with particular areas of accounting. Among the most common are: Note that vendors may use differing names for these modules. Implementation. In many cases, implementation (i.e. the installation and configuration of the system at the client) can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Most mid-market and larger applications are sold exclusively through resellers, developers, and consultants. Those  organizations generally pass on a license fee to the software vendor and then charge the client for installation, customization, and support services. Clients can normally count on paying roughly 50-200% of the price of the software in implementation and consulting fees. Other organizations sell to, consult with, and support clients directly, eliminating the reseller. Accounting software provides many benefits such as speed up the information retrieval process, bring efficiency in Bank reconciliation process, automatically prepare Value Added TAX (VAT) / Goods and Services TAX (GST), and, perhaps most importantly, provide the opportunity to see the real-time state of the  company’s financial position. Types. Personal accounting. Personal accounting software is simple in design and is used mostly for individuals. Some activities that it supports are accounts payable-type accounting transactions, managing budgets, and simple account reconciliation. It is relatively inexpensive compared to the other accounting options. One of the more common uses of personal accounting software is for tax preparation. This software is used to file tax returns in a format suitable with the Internal Revenue Service. An example of such software would be TurboTax. Low-end market. At the low-end of the business markets, inexpensive applications software  allows most general business accounting functions to be performed. Suppliers frequently serve a single national market, while larger suppliers offer separate solutions in each national market. Many of the low end products are characterized by being "single-entry" products, as opposed to double-entry systems seen in many businesses. Some products have considerable functionality but are not considered GAAP or IFRS/FASB compliant. Some low-end systems do not have adequate security nor audit trails. Mid-market. The mid-market covers a wide range of business software that may be capable of serving the needs of multiple national accountancy standards  and allow accounting in multiple currencies. In addition to general accounting functions, the software may include integrated or add-on management information systems, and may be oriented towards one or more markets, for example with integrated or add-on project accounting modules. Software applications in this market typically include the following features: High-end market. The most complex and expensive business accounting software is frequently part of an extensive suite of software often known as enterprise resource planning (ERP) software. These applications typically have a very long implementation period, often greater than six months. In many cases, these applications are  simply a set of functions which require significant integration, configuration and customization to even begin to resemble an accounting system. Many freeware high-end open-source accounting software are available online these days which aim to change the market dynamics. Most of these software solutions are web-based. The advantage of a high-end solution is that these systems are designed to support individual company specific processes, as they are highly customizable and can be tailored to exact business requirements. This usually comes at a significant cost in terms of money and implementation time. Hybrid solutions. As technology improves, software  vendors have been able to offer increasingly advanced software at lower prices. This software is suitable for companies at multiple stages of growth. Many of the features of mid-market and high-end software (including advanced customization and extremely scalable databases) are required even by small businesses as they open multiple locations or grow in size. Additionally, with more and more companies expanding overseas or allowing workers to home office, many smaller clients have a need to connect multiple locations. Their options are to employ software-as-a-service or another application that offers them similar accessibility from multiple locations  over the internet. SaaS accounting software. With the advent of faster computers and internet connections, accounting software companies have been able to create accounting software paid for on a monthly recurring charge instead of a larger upfront license fee (software as a service - SaaS). The rate of adoption of this new business model has increased steadily to the point where legacy players have been forced to come out with their own online versions. Cloud Accounting Software. Cloud Accounting Software is where financial information can be accessed from any device connected to the Internet at any time even though the financial  data itself is located at a centralized computer. This differs from more traditional accounting software as it is restricted to a certain computer or system of computers and that accounting information can not be easily accessed from other devices. Some reasons cloud accounting software is preferred by users is there is no need to worry about maintenance or hardware system upgrades, it can reduce overall costs, and that a user can gain access from multiple locations. One of the primary reasons cloud accounting software is not being used is the threat of the security of the data. Some of the  more common examples of Cloud Accounting Software include Cloud Elements, IBM App Connect, IFTTT, and Zapier. Blockchain in Cloud Accounting System. Blockchain is a distribution of records shared among participating parties. The security of records through blockchain technology comes from verifications and agreement of changes in data by the majority of parties. Through blockchain technology, accounting software records all the transactions and verifies the information transparently. For example, if an existing record is altered in the accounting system, other parties will cross-check the transaction with the ledger information that they have. Although cyberattacks still occur, the security of the  blockchain is significantly higher than other technology that offers cybersecurity. In addition, few or no people are required to monitor the activities and cyber threats because of the technology. Entering records in accounting will also allow a synchronized ledger on a real-time basis and simplify double-entry accounting process. Furthermore, blockchain technology with a cloud-based accounting information system introduces triple entry accounting to eradicate trust and transparency problems. With blockchain technology, cloud accounting will be utilized more due to an increase in security and transparency.