Most products allow users to submit expenses by uploading bills from a mobile app. Expense tracking: Records the total expenses incurred in a business.Billing and invoicing: Creates invoices based on customer records, prints and sends them to the customers, and records the information in the accounting system.It also summarizes assets, equity, expense, and revenue information for each account. General ledger: Lists the accounts payable and accounts receivable information in a table.These reports include sales reports, AP/AR, and cash flow analysis. Financial reporting: Provides a graphical representation of data in accounting systems.

Bank reconciliation: Matches 'credits' and 'debits' in an account to help businesses spot and correct discrepancies and missing entries in a record.

This information is reflected automatically on the general ledger.

Accounts receivable (AR): Tracks customer credits related to payments and purchases.

The transaction information is reflected in the accounts payable and general ledger tables.

Accounts payable (AP): Automates invoice capture, approval management, and authorization processes.

Accounting software uses the financial and accounts information stored in the system, thereby making this process easier and free from human errors. Small businesses need to make sure that all their tax forms are submitted on-time in order to avoid penalties due to delayed filings.

Easier tax compliance: Tax management for small businesses also involves a lot of documentation and paperwork.

Moreover, accounting software ensures that there is no error in calculations or discrepancy in records. By digitizing financial paperwork, accounting programs help small businesses reduce the time it takes to process financial transactions such as expense management, accounts payable, and accounts receivable.

Improved process efficiency: Accounting involves a lot of paperwork and manual data entry, which is time consuming and can be prone to human error.

Accounting software helps small businesses bring the accounting functions in-house, thereby reducing the total price tag.

Cost savings: Outsourcing has been the traditional approach for managing small business accounting, which adds to the operational expenses of the business.

Top accounting software applications