Accounting Software - Advanced Modules

By David Kraft

Working with the wrong accounting software is a game of give and take in most companies. Sometimes the company has to alter processes to accommodate the software's settings and at other times the company is able to customize the software to work in line with existing processes.

The trick to avoiding this game is to select the right software from the start. The result of selecting and implementing the right software in the beginning is a more automated and streamlined business that can avoid the back and forth game of adjusting processes to work with the software and vice versa. Accounting software available today comes with a number of modules that can be helpful, and if the right modules are selected, a company will gain almost immediate benefits from the new software. Some of the more common modules are:

General Ledger - The foundation of financial software, a general ledger allows users to interface with all functions of the software package. It will keep a record of all transactions, budgets, and other financials. The general ledger imports data from other modules and displays it in an easier to read format. When selecting software with general ledger capabilities, be aware of what reports you need easy access to and look for the best solution.

Sales Order Entry - A sales order entry module allows companies to store and access all of their sales orders in one place. All aspects of processing an order is put in to the system and everything from the shipping address to the available inventory is accessible. To gain the most functionality from a sales order module, it needs to be integrated with other modules, such as inventory management.

When properly configured, a sales order module allows users to complete all steps of the order process in one place. It should also be capable of tracking packages while they are en route to customers using tracking numbers.

Inventory Control - This module is relatively self-explanatory - it allows users to manage the inventory of products through the software. It is usually integrated with sales and purchase order processing modules and is capable of generating reports about inventory supply, sales, customers, accounts, inventory value, and so on.

Job Cost - This module is capable of tracking costs related to jobs and projects in certain industries, such as construction. The main function of job cost modules is to track the cost to date of a project or job and be able to analyze that cost in relation to hours, percent of budget, and so on.

When used properly, job cost modules can provide companies with beneficial information about how profitable jobs that the organization completes are. This module can be used as both a tracking and estimating software and is capable of tracking previous job costs and using real, historical data to estimate costs for similar jobs.

Purchase Order - Purchase order modules handle ordering new products from suppliers. This item tracks what supplies are in stock, how long they will remain in stock, when new supplies need to be ordered, and how much needs to be ordered. A well-integrated purchase order module will track purchase orders from their initial creation to arrival of the new supplies, however some companies do not operate a level to make this much functionality worth the additional money.

David Kraft is a freelance author with many areas of specialization. He offers advice for selecting new accounting software for businesses of all sizes at his financial software site.

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