Accounting Systems & Software

Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

Read this lesson to learn about the different types of accounting systems you can choose from. Learn what the benefits of each type are as well as some software examples of each type of accounting system.

Accounting Systems

Every business needs a good accounting system. An accounting system is a method, either manual or computerized, that keeps track of all your financial data. Such a system also allows you to analyze your data in various ways to make it easy for you to produce financial reports. In this lesson, we will consider two different types of accounting systems that are available to you. You will also see some software examples of each type.

Cloud Accounting

The first type of accounting system we will consider is cloud accounting. This system stores your financial data on the internet. You get a login id and password, and you can access your financial data and financial tools from any computer that has access to the internet. You are not limited to a single computer or a single location. There is usually a monthly fee involved with cloud accounting.

Cloud Accounting Software

One example of cloud accounting software is QuickBooks Online. Other examples include FreshBooks and Xero. Each has its own set of features. Some allow just a few users, while others allow for an unlimited number of users. Some provide a large selection of reports to choose from, while others have just a few. And some integrate with online banking, while others do not.

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