What is accounting software?

Accounting software is software that does various accounting and bookkeeping tasks. It stores a business’ financial data, and is often used to perform business transactions.

Most modern accounting software is always connected to the internet. This means you can connect from any internet-capable device, like your laptop or smartphone. This online space where you can access your data is called the cloud. Online accounting software automatically receives and updates because it’s always connected to the internet.

Different kinds of accounting software do different things. Most of them automatically enter, store and analyse data for you. This is especially useful for saving time on tasks like bank reconciliation. Accounting software also offers useful tools like invoicing, bill payment, payroll, and financial reporting.

 

Related terms:
What is bank reconciliation?
What is financial management?
What is the objective of financial reporting?

Related Xero feature:
Know your numbers with the online accounting dashboard

Related Small Business Guide:
What makes a good cloud accounting provider?

Accounting Terms

Accounting terms and how-tos for beginners. Let us walk you through all the basics that you need know.

What is accounting software?

Accounting software is software that does various accounting and bookkeeping tasks. It stores a business’ financial data, and is often used to perform business transactions.

Most modern accounting software is always connected to the internet. This means you can connect from any internet-capable device, like your laptop or smartphone. This online space where you can access your data is called the cloud. Online accounting software automatically receives and updates because it’s always connected to the internet.

Different kinds of accounting software do different things. Most of them automatically enter, store and analyse data for you. This is especially useful for saving time on tasks like bank reconciliation. Accounting software also offers useful tools like invoicing, bill payment, payroll, and financial reporting.

 

Related terms:
What is bank reconciliation?
What is financial management?
What is the objective of financial reporting?

Related Xero feature:
Know your numbers with the online accounting dashboard

Related Small Business Guide:
What makes a good cloud accounting provider?

Showing 34 more questions for all topics