Categories of accounting software

Personal Accounting

Mainly for home users that use accounts payable type accounting transactions, managing budgets and simple account reconciliation at the inexpensive end of the market suppliers include:

Low End

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 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:
* Industry-standard robust databases (eg Microsoft SQL, Oracle, Pervasive)
* Industry-standard reporting tools (eg Cognos, Crystal)
* Tools for configuring or extending the application (eg an SDK, access to program code, the ability to be controlled via Visual Basic for Applications (VBA))

High End

The most complex and expensive business accounting software is frequently part of an extensive suite of software often known as Enterprise resource planning or 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 customisation to even begin to resemble an accounting system.
The advantage of a high-end solution is that these systems are designed to support individual company specific processes, as they are highly customisable and can be tailored to exact business requirements. This usually comes at a significant cost in terms of money and implementation time.

Vertical Market

Some business accounting software is designed for specific business types. It will include features that are specific to that industry.
The choice of whether to purchase an industry-specific application or a general-purpose application is often very difficult. Concerns over a custom-build application or one designed for a specific industry include:
* Smaller development team
* Increased risk of vendor business failing
* Reduced availability of support

This can be weighed up against:
* Less requirement for customisation
* Reduced implementation costs
* Reduced end-user training time and costs

Some important types of vertical accounting software are:
* Banking
* Construction
* Medical
* Point of Sale (Retail)

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