Foreign exchange trading is easily the largest financial market in the world. It deals with no less than 3.2 trillion US dollars daily. This amount is so big that even if you combine both the world bond and stock markets and multiply the result by three, you still fall short compared to the forex turnover. This makes it the most popular choice among traders. Each one wants a portion of that trillion of dollars and sees forex trading as the fastest way to it.
Other terms used to describe foreign exchange is forex trading, SPOT trading or plain SPOT, currency trading, FX or FX trading, etc. Simply put, forex trading is the simultaneous buying of currency and the selling of another.
Aside from the bulk of money traded in the foreign exchange, many prefer it due to many reasons, i.e., leverage, low dealing costs, 24-hour availability, and its high liquidity. Although this market is predominantly played by big players such as banks, brokers, and other financial institutions, individual investors can also participate and even make it good particularly with the day trading where the movements of the market are quick and money is dealt fast. What is important is that the trader is equipped with the necessary forex knowledge to be able to cope with everything that has to do with forex trading. It will also give the trader a bigger chance of benefiting from the trade and being a success at it.
Among the vast knowledge that you should learn about foreign exchange, the type of strategy or the trading style to use should be one of the first things you should determine. You should evaluate your mindset and financial goals, your lifestyle and most importantly, your time commitment to know whether it is position trading, swing trading or day trading that is most ideal for you. Failing to determine it wisely can result to disaster. The basic difference of the three mentioned trading strategies is the amount of time that each one requires as well as the amount of time that a trader can hold on to a currency before he sells. For a closer look at the characteristics of each method, enumerated hereunder are the differences of each trader who will use the corresponding trading strategy. With the descriptions indicated, you will easily know the type of trader that you are.
Trading Personalities for Each Trading Type
The Position Trader
A position trader is one that has a family with a wife that is demanding, a good number of children, and many pets. He is more likely a professional to be able to support such a large family. Aside from the profession he has, he also wants to put money in the forex market. However, he is not one that has the time to sit all day in front of the computer. However, he is the type who knows about the economies of various countries and manages to keep up with data regarding said economies. His situation is ideal for position trading.
An investor who is into position trading is one who holds his position for weeks or even months. He trades only a few times a year and would use fundamental analysis in trading. This means that he only spends a couple of hours weekly to study economic reports and from there decides the direction to take when trading. A position trade is long-term and thus targets larger profits. His losses however could be large as well. This trade is known for its reward-to-risk-ratio.
A position trader is the type who gets a life while forex trading on the side. He may have another profession and time with his family since only very little of his time is occupied by trading. He can afford to have a personality that will not require him to make quick trading decisions. His attitude towards forex trading is more on the long-term trend.
The Swing Trader
A swing trader would be someone who can also handle another job at the same time as the forex trading business. He is the type however who will hold trades shorter than that of the position trader. He is able to spend a couple of hours daily to study the market, unlike the position trader who does it weekly. He is the type who would try to predict currency movements in a shorter term, but may hold his position for a few days as he may see fit. He may even decide to hold his trade for a few weeks if the momentum seems to favor that move.
A swing trader would be the type to dedicate at least an hour to check the forex market. He is also one that will keep a close tab of the economies of the world at least an hour a day. He can base from this the volatility of the currencies he watches. He will also determine if it is best to keep his trade for a few days or a few weeks. Technical analysis is his best weapon in his choices with the help of trend lines, channels, moving averages, etc. He may be able to target limited profits and at the same time, limited losses. He may need to check his position daily but for very little time only, allowing him to take on other endeavors and activities.
The Day Trader
The day trader is one that has trading positions that open and close daily. There may be days where he closes only one position and there are also days when he trades several times. Whatever the case may be, one thing for sure is that he will close all his positions before the market ends for the day, which is at 5PM. He would be the type that is always tuned in to the forex market to make sure he does not miss a good trade. He would most likely use small stop losses, as he is risk averse.
A day trader is one that has forex trading as his only means of livelihood since all his time and attention will be required by it. He has to watch the market full-time and has a big account enough to afford the needs in his life. He may update himself with daily news but he relies mainly on technical analysis with his trading decisions. He is one who follows the signals. This type of trader may lose below half of his trades but has his average wins twice the average loss. The long run profit is greater than losses most of the time.
The Fourth Type
The three types of traders above may be the traditional ones. However, there is a fourth type, the one that may not be equipped with enough forex knowledge to make it successful in this field – the type who keeps losing despite the experience and knowledge that was gained, and simply the one that may be too lazy to do all the analyzing and studying of data and trends. If you fall under this type all is not lost. You still can make it good in forex trading. You still have the capacity to make it rich in this currency trading business. How? Make use of currency trading software.
A lengthy description of what this software is, as well as all the other software connected to forex, particularly forex day trading, will further be discussed next. In the meantime, the focus will be on day trading software. To understand it clearer however, below are day trading basics that you will need to learn first to understand better the use of other trading and accountancy software that will be enumerated later on.
An Introduction to Day Trading
Basically, day trading is the buying and selling of security within one trading day. Day trading may happen in any form of marketplace. The stock market and foreign exchange (forex) market, however, is where day trading normally happens. Naturally, these day traders are both well funded and well educated. They use short-term trading strategies along with large amounts of leverage to take advantage of even the slightest price movement in currencies and liquid stocks. These day traders have two vital roles in the market – they provide a big percentage of the liquidity of the market, particularly in stock market, and they keep the marketplace running proficiently through arbitrage. By reading this, you will be able to know the basics about day trading, how it is done and the people who are engaged in it.
If you go to Google and you type in “day trading,” you will find out why there is a “controversy.” On Wall Street, the potential profit of the day trading industry is one of the most misunderstood and debated topics. Hundreds of Internet scammers have capitalized on this “controversy” by assuring people outstanding returns after only a short time. On the other hand, the social media constantly promotes day trading as a form of get-rich-quick scheme that never fails. But the truth about day trading is somewhere in the middle. There are some people involved in this kind of trading without proper knowledge about it. In fact, some even admit that they joined day trading due to “gambler’s high.” Despite all of these, they still become successful day traders.
Quite a number of professional financial advisors and money managers recoil from day trading because they believe that in most cases, the end does not justify the means. They usually state that there is no famous personality that can be categorized as a day trader. Business tycoons such as Peter Lynch and Warren Buffet are living proofs of success from other forms of trading and investing. Meanwhile, those that were involved or currently involved in day trading insist that there is money and profit in that kind of trading. They do admit though, that the success rate in day trading is essentially lower due to the fact that it is more complex and risky. In addition to this, there are a lot of scammers nowadays.
In general, the street stays divided on this controversy. At the very least, the people on the street see eye-to-eye that day trading is not suitable for everyone, for it involves risks that not everyone can absorb. Day trading industry also necessitates deep understanding of how the market works and knowing what the strategies of making money within a short period are.
A More In-depth Look at the Qualities of a Professional Day Trader
A day trader, needless to say, is a professional that trades for a living and not just because of gambler’s high or out of hobby. He is basically well established in the day trading field and has profound knowledge of the market. Below are some of the qualifications of day trading, things that a successful day trader must have:
- Ample Capital
You cannot expect to get money out of day trading without giving something in return. Just like any other type of business, you need to first have a sufficient amount of money to begin. Professional day traders use risk capital only, money that they can afford to lose. Risk capital is important for it saves them from financial ruin and also removes emotion from trading. A big amount of money is typically necessary to make the most out of intra-day movements in price.
- Experience and Knowledge of the Market
While there are some beginners in day trading that succeed after some time, it is still advantageous to have even a bit of experience in the market. After all, experience is indeed the best teacher. More often than not, those who attempt to undergo day trading without knowing the fundamentals of the marketplace fail in the end.
Any day trader would want an edge over other traders in the market. There are numerous strategies that day traders may use. Some of these strategies are arbitrage, trading news and swing trading among others. Such strategies may be complex at first but once you start making money, you will find it easy and useful as well.
Without discipline, your strategy will be put to waste. Most day traders end up being bankrupt because they fail to make trades that meet their personal criteria. Just like what they all say, success is not achievable without proper discipline.
Make a Living Out of Day Trading
There are two main categories of day traders: Those who work for large companies and those independent traders who work on their own. Those day traders that work for a living are usually the ones in large institutions. Those that work on institutions are entitled to use things that are not available to individual traders. Some of these things are large amounts of leverage and capital, a dealing desk, costly analytical software and a whole lot more.
Full time traders are the traders that usually look for easy profits that can be gained from news events and arbitrage opportunities. The resources that they are entitled to use allow them to take advantage of day trades that are less risky before the individual traders can even make a move. Speaking of individual traders, they are those that manage the money of other people or trade that money with their own. Few of these individual traders have access to dealing desks. However, they commonly have strong bonds with a brokerage (because of large amounts of commissions) and even access to other forms of resources. But with the limited resources that they have, they are having difficulties in terms of competing with the institutional day traders, thus forcing them to take on riskier moves.
The individual traders basically do day trading by means of swing trades and technical analysis, and even some leverage, to spawn enough profits from small price movements in liquid stocks.
Requirements of Day Trading
Day trading requires its participants to have access to some of the most complicated instruments and financial services in the market. Some of these are:
- Access to Trading Desks – this is normally reserved for day traders that work for large institutions or those who handle huge amounts of cash. A dealing desk, first of all, provides day traders with immediate order executions, one factor that is essentially important, particularly when sudden price movements happen. For instance, when a specific acquisition is announced, traders that are looking at merger arbitrate may acquire their orders before any other trader in the market does, making the most out of the difference in price.
- Several News Sources – according to day trading expert Gordon Gekko in “Wall Street,” information is perhaps the most necessary commodity in trading. Fresh news is what gives day traders majority of opportunities that they can take on, so it is a must for you to know when something important occurs. A basic trading room has a right to access televisions with CNBC, Dow Jones Newswire, and any other news agencies. They also have software that continuously analyzes other sources of news for additional information.
- Analytical Trading Software – this kind of software is very expensive but is a requirement for day traders. Those day traders that depend on swing trades or technical indicators prefer using trading software instead of tuning into the news. Some of the must-have features of this kind of software are:
a) Neural and genetic applications – these applications are those that utilize genetic algorithms and neural networks to precise trading systems so that more realistic predictions of the price movement in the future are made.
b) Back testing – this enables day traders to look at how a specific strategy performed in the past so that it can predict its performance in the future more truthfully. This, however, does not necessarily mean that the past performance has a complete bearing on the future outcome.
c) Automatic pattern recognition – this basically means that a trading program can identify technical indicators, from flags and channels to more sophisticated indicators such as Elliot Wave patterns.
d) Broker integration – such applications can directly interface with brokerage, meaning that instantaneous and nearly automatic trade executions are being done. This can help remove emotion from day trading and can improve execution times.
When combined, these can give traders an edge over the whole remains of the market. This is why it is pretty obvious why some traders fail without them.
Even though day trading is somehow a controversial phenomenon, its dominance is without question. Day traders, regardless if they are individual or institutional, play a very vital role in today’s market by maintaining the market’s efficiency and liquidity. Some say that people should avoid day trading while there are others that argue that this is a great way to make profit. And though day trading is growing popular among inexperienced day traders, it still should be left to individuals with the right resources and skills to make the business work.
After a brief look at what day trading is all about, it is now time to take a look into the basics of day trading software. Before we go into day trading software, let me briefly discuss trading software in general. This is software that you will use when forex trading to receive pertinent information, execute your trades for you, and manage your forex trade accounts. This is what many refer to as forex robots or forex systems that may come in complete package and could handle all the tasks related to forex trading. It runs automatically without the need to be supervised all the time. There are also some that come only as components or a specialized tool and features for investment such as many of the software for accounting that will be later discussed thoroughly. You will find later that these trading software applications and accounting software packages can now easily be accessed through the Internet. They are basically designed to remove the emotions in forex trading and make the whole process more convenient and quicker. Now we go to Day Trading Software.
Definition of Day Trading Software
A day trading software, obvious from the name itself, is a kind of computer software that is specifically made to handle day trading of stocks. This software is categorized into three primary categories – charting, data and trade execution. These three will further be discussed below.
A lot of day traders chart the prices in some sort of charting software. Numerous charting vendors also provide data feeds. Charting packages typically offer similar basic technical analysis indicators. As for advanced packages, they normally include a whole programming language set for testing various strategies and producing more indicators.
It is imperative that a day trader knows the value of the futures, stocks and currencies that he would want to trade. In terms of futures and stocks, the prices are derived from the exchange where they were traded. Foreign exchange, or forex, is a bit different for there is no central exchange.
Since exchanges do not normally want to have themselves involved with supplying data to practically millions of people, they have their price feed made available to a certain aggregation company. This company, in return, sells these price feeds to institutional and individual day traders. Prices may differ for data feeds, with an exchange determining the base price. There are some free data feeds, but they are usually delayed. These kinds of feeds are only beneficial to occasional investor but are practically piece of trash for day traders.
Execution of Trade
Once the day trader has the data analyzed and visualized on a chart, the trading part comes in. Basically, the trader would, at some point, place a trade. For them to be able to do this feat, they would need a type of trade execution software. A lot of brokers might provide proprietary software that is directly connected to their house systems. There are also some third party applications. The third party programs are beneficial since they enable the day trader to make trades through various brokers while retaining the original interface. They might also offer some advanced features like an automatic trade execution.
Various Accounting Software Vital to Day Trading and Other Endeavors
A forex day trader may make use of various day trading software for their daily trading convenience but they should also be aware of the importance of various accounting software solutions that can be used to help them with just about everything that pertains to their financials. If you think you do not need personal accounting software or this accounting system software, think again. They will not just make things very easy and convenient for you; you can also be assured that your money is being managed well by no other person than yourself. Gone are the days when your finances are being run and managed by an accountant. You can now take command of all your money properly with the help of the best accounting software that you can find in the Internet as web based accounting software or as proprietary software you can buy license for and download.
Even if you are the highly experienced type or the successful one in forex trading, you still need the top accounting software that can help you become more successful with your investing decisions as the said accounting software applications can provide you constant access to important and solid forex information, advice, trends, insights, etc. that will be support your decisions. It will pave the way to give you a more refined investment strategy as well as the needed edge that will help you rake in more profits.
No doubt about it, accounting software products are quite important not only in everyday life or in business but even in forex day trading. Accounting is definitely an imperative portion of a business endeavor. Gone are the days when accountants are the only ones who manage to maintain and represent businessmen with their records and transactions. The dawn of accounting software programs has come and is here to stay.
To give you an idea what they are and what they can offer you, below are an enumeration as well as brief description of various accounting software systems that you may use for your business and trading needs:
Simple accounting software
Simple accounting software, also known as small business accounting software, is a type of software especially made to cater to simple and small businesses. These businesses have their own personal shops, needs, requirements and certain tax calculation structures. The simple accounting software, therefore, takes into account all of these personal needs of the business and creates a special accounting package that they can use. Moreover, a simple accounting software also ensures that the firms and businesses with limited manpower resources do not have to pay out for the hiring expenses for accountants and other professionals that will handle the businesses records, inventory and the like.
Construction accounting software
If you are wondering what construction accounting software is and what it is for, then wonder no more. The primary purpose of this software is to build, build and build at a fast pace. It is used to give its users maximum profits. This is what makes the software a big success.
Achieving maximum profits is possible just as long as you are in complete control of your business starting from day one, the day when you made your first credit ledger and debit entries into the business’ accounting system. The construction accounting software generally helps you yield profit bids, generates profitability and/or revenues and has full and instant control over the whole construction program.
Accounts payable software
Ever wondered what accounts payable is? It is generally an account or a file that consists of money that a certain company, individual or business owes a supplier/s but has not paid back yet. It is somehow a form of debt. Once you collect an invoice, you need to add it to your file. When you pay for the debt, you can remove the invoice. Hence, the accounts payable is a type of credit that is being offered by suppliers to the purchasers. Accounts payable software is software that takes care of the money owed by different organizations to the vendors. It makes the whole work easier by handling all the vendor credits and partial payments. Furthermore, the vendor terms, 1099s and sales taxes payables are also being managed by accounts payable software.
Accounts receivable software
Before you fully understand what an accounts receivable software is, you first have to know what accounts receivable funding is. Also known as invoice factoring, the accounts receivable funding is a form of financial service that lets a business sell receivables and invoices to different financing companies that purchase them at discounted prices. It is advantageous because you get instant cash whenever you need it.
There are two ways to manage this kind of funding – through outsourcing of work to a different company or through accounts receivable software. The software maintains an organized record of the clients and transactions made. It also lets you retain a main record that holds files such as customer information, transactions, payments and charges.
Church accounting software
The church is one institution that demands the respect of people. In fact, a lot of individuals are donating billions of dollars so that the operation of the church in terms of religious, spiritual and secular duties may continue. The management and maintenance of records of the church’s financial transactions necessitate a huge task force of various financial experts that can tax upon management resources and time of the church. So, what is the answer to these abovementioned problems? A church accounting software may be the best solution. It is a kind of software designed by a group of accounting experts that are well equipped with knowledge about the accounting needs of a church. This software can help you save money in the long run.
Furthermore, this software is different from other types of software due to the fact that a church is typically a non-profit organization and accounting is slightly different from the accounting of other tax paying companies. Plus, the church has multiple expenditure and income account heads. Aside from meeting the needs, a church accounting software can also be tweaked according to the church’s needs. When vital financial meetings are happening, data reports can be easily presented.
Restaurant accounting software
A typical restaurateur is great in the field of hospitality, but is not so expert when it comes to the technicalities of the financials such as the accounting needs of the business. This is where the use of restaurant accounting software comes up and contributes greatly to the success of the business. Peachtree, Quickbooks and a number of Microsoft accounting software can easily do the trick. These systems are usually packaged with Point of Sale Accounting Software, a financial software package and a middleware system, which takes care of theoretical costing, inventory control and financial reporting on the store-level.
With the use of this software, the hidden costs that usually come with a restaurant business can easily be detected. This will also enable you to produce financial statements that are quite detailed. It will also classify the sales data accordingly making for better organization. It can even give you a bird’s eye-view of your net profit with just a one click.
Call accounting software
Call accounting software is one that supplies metrics for different functions such as toll fraud alerts, traffic analysis, cost allocation to various departments and network management. There are a lot of call accounting vendors that flaunt their wide array of niches and features. There are some that specialize on one-of-a-kind requirements of hospitality environments while others focus more on professional bill back. There are also some that gives solutions for requirements of general businesses.
Financial accounting software
A very useful tool in recording transactions and knowing the status of any type of business is financial accounting software. This system usually comes with three basic modules. The first creates the party master, which records vital accounting transactions such as sales, purchase, receipt and payment. Next is the Ledger Module where income, expenditure, assets and liabilities are classified in a ledger for easier determination and viewing. Lastly is the Journal Voucher where transactions are divided under debit or credit. This system is applicable to many types of organizations, whether small or big.
Home accounting software
Today, bookkeeping is no longer done with the use of a pen and paper. Technology has taken over and the use of the computer and Home Accounting Software, as well as Tally Accounting Software does the trick. This is the choice of small businesses with type of systems revolving around MYOB, Peachtree and Quickbooks to name a few. With these systems, you are provided with ready-made charts and allow you to create financial statements that you can customize according to your needs and requirements. Some of the accounting services provided by this software includes Payroll, Inventory, Expenses and many others.
The programs are quite comprehensive and user-friendly. You need not have a background in accounting to be able to make it run. For instance, you can afford to have a full and double entry system for bookkeeping that will not require you double entry. This means there is no need to manually input data and information as you can simply copy a database for use in the other systems. With this software then, you are relieved of the burden of making sure you have not forgotten to credit and debit accordingly. Even the calculations are accurate since the computer does it for you.
Open source accounting software
Whether you like it or not, technology has taken over a lot of aspects in life and this century proves to be a clear proof of that. When it comes to accounting software, the Open Source accounting software is definitely the choice for those that go with the times. Today, this type of system is so popular due to the ability of just anybody to use them and freely distribute them without the need to pay a license fee to any company. Linux is currently the most popular provider of these open source programs including those used for accounting purposes.
Payroll Accounting Software
Needless to say, accounting is one of the most tedious tasks involved in any business. It is one task that also requires accuracy and attention to details. It could prove to be a grueling assignment for anyone but the business needs it to properly monitor the flow of cash. Thus, there is not a single business that would say no to a program that will make easy accounting possible. One of the most important types of easy accounting software is payroll accounting software. In fact, there is probably no company that does not implement the use of this software in their operations. Not only does it help in controlling the costs and preparing salary sheets, it also assists in giving a comprehensive overview of payouts, in an efficient and timely manner.
Aside from its exceptional computing speed, it has a lot more benefits such as the ability to create payroll reports (e.g. pay slip, leave status, bank advice, advances, loans, annual income tax return), return forms (e.g. leave encashment valuation, professional tax return, gratuity valuation), graphical representations (e.g. graphs and charts for monthly sales, either location wise, department wise, or category wise), and MIS reports (e.g. deduction register, cumulative pay slip, salary certificate). It also allows a more organized and controlled management of master entries (e.g. employee category, department and location, leave allotment master, loans master, advances master, employee master, perquisites master) and transaction entries (e.g. promotion/increment entries, attendances, duration of overtime entries).
Moreover, it also has extra utilities such as email listings, user-defined pay register, and the ability to export data to applications such as Word, Excel, etc., and import data from data punching machinery.
Great Plains Accounting Software
Great Plains accounting software is one of the most widely used professional accounting software today. Great Plains Software, a company based in Fargo, North Dakota, first developed it. In 2001, Microsoft bought it and was re-launched with the name “Microsoft Dynamics GP.”
Today, you won’t find a Windows program better than this when it comes to the level of compatibility and the number of users it can support. This is also the best software available as far as integration capability is concerned. With more than 30,000 businesses using it, it has become an exceptionally efficient accounting tool.
This program has only one type based on physical software, and two types based on the level of functionality. These two are Business Essentials and Advanced Management. If you are after a cheaper alternative, then you should go for the former. As its name suggests though, you will only get its basic features and functionalities. This type is considered a type of home business accounting software since it is best for home businesses and other businesses that are small-scale. It can also be categorized under retail accounting software since most retail outlets, dealers, and sellers implement this functionality type of Great Plains software for their undertakings.
Conversely, the latter is considered a type of corporate accounting software or partnership accounting software since it has additional features and higher-level functionalities that most large businesses need for their operations. These include giving up-to-date data on the financial position of a business, in-depth reporting that makes it possible for managers to evaluate their funds at a glance, and providing information on growth opportunities and business movements to follow.
What is great about Great Plains software is that you will be getting all of the same, if not better, features and functionalities of the expensive enterprise accounting software systems for only a fraction of their cost. Aside from having over 200 modules, you will receive support from Microsoft itself, which is perhaps the world’s strongest in the field of electronics today.
It also comes with two amazing integration tools – eConnect and Integration Manager that will make it possible for you to modify the program in order to fit whatever it is that your business requires. Any additional tweaks, plug-ins, and add-ons from third-party developers will enhance the software even more.
Fund Accounting Software
Fund accounting software is the better choice for non-profit business organizations because a lot of these companies find that they require functionalities that the available commercial accounting software applications cannot offer.
First, commercial software is not a type of grant accounting software since non-profit businesses are responsible for a greater amount of reporting tasks than commercial businesses. Thus, commercial software does not include features such as tracking funds for grants, separating fund for grants, monitoring of restricted funds, and tracking of the usage of restricted resources. Furthermore, you may have to be able to effortlessly generate reports that meet the standards of both the Financial and Governmental Accounting Boards, monitor incoming funds across various time intervals, and produce supplementary reports that validate the use of restricted grants and donations. Attempting to use commercial software for the purposes of separating, tracking, and reporting on grants and donations is like forcing a one-month old baby to speak fluently.
Trust Accounting Software
Different trust account policies apply according to state, but one thing that does not change for lawyers or anyone who works in a fiduciary space is the paramount worry of running afoul of the meticulous conditions. This makes it a must for any business to migrate from manual record keeping to an automated system through the use of trust accounting software.
Bookkeeping manually can cause a lot of problems for your business because aside from consuming a considerable amount of time, you will also find it very hard to spot errors. Human error is inevitable especially at the end of the day when the bookkeeper or owner has grown tired of the stress and activities. Moreover, preparing reports will seem practically impossible.
If you have a trust software program installed in your system to do the accounting for you though, you will find more than half of your work responsibilities already being taken care of. You get to detect erroneous data readily, simplify the production of reports, transaction entries, bank reconciliations, and the printing of trust checks, keep an audit record for any changes made in your books, and help your accountant by making it easy for him to study your trust data and make the necessary corrections, minus all the paperwork.
There are, however, some things you need to remember when choosing your trust software. First, you must not get too excited and immediately buy the first program you find. There are various accounting management software programs available that provide features needed for general operating accounts but often lack functionalities required in trust accounting. To help you assess carefully your choices, ask yourself the following questions:
- Does the program allow the printing of deposit slips and trust checks?
- Does the program allow the easy input, tracking and reconciliation of deposits and expenditures in each account of the clients?
- Does it allow the user to easily generate required monthly reports like ledger card transactions, reconciliations, balances, etc.?
- Do the accounting software source code and algorithm of the program make it possible for common errors in trust accounting, e.g. ledger overdrafts of clients, duplicate check numbers, etc., to be prevented?
Manufacturing Accounting Software
Manufacturing accounting software is used by businesses for the inventory and management tasks. It is a type of inventory accounting software that it is essential for any business because it practically takes care of everything associated with production. Note that the management of manufacturing entails four essential elements namely: estimation, production, accounting, and reviewing. These four take a lot of time to be completed and needless to say, these are utterly tedious tasks. With manufacturing software, however, these four become extremely easy to carry out.
First, the electronic input of plans and their regular monitoring is made very easy with the use of this software. It is also a very big help when it comes to the tracking of a company’s assets, which is crucial for any business.
One of the most important benefits of installing manufacturing software is its ability to optimize the use of the resources of a company as it can easily link a company’s production ability with the product’s level of demand. Furthermore, it is extremely good at predicting future trends. With this software, the management of the organization becomes extremely effective thanks to a number of functionalities like contact management, sales forecasting, reporting options, data analysis, assembly management, sound inventory and other core accounting features. It also assists any business substantially in keeping track of the following:
- general ledger
- time, billing and job costing
- fixed assets
- payroll solutions,
- accounts payable
- accounts receivable
No manufacturing business is complete without manufacturing software to take care of the accounting for it.
Tax Accounting Software
When you are involved in a business, it is not only your business partners and affiliates that assist you in the proper execution of your business operations, but also the government. In fact, the government plays an integral role in the business industry. First, it takes proper measures to ensure that the environment stays conducive to peaceful industrial activities. It maintains dispute refinement forums and discussions to sort out any business clashes that might result from various business transactions, and provides protection and security whenever necessary.
In order for the government to be able to perform these activities, they need resources. These resources come from the taxes that we pay. All business enterprises, commercial firms and industrial organizations are obliged by law to file tax returns without fail. And just like all government operations, the process of filing a tax return is rather time-consuming and complicated. Who loves red tape anyway? This is where tax accounting software comes in handy. It can help any business in paying for its taxes using the least amount of effort.
The calculation of taxes should be done accurately and its filing should be fast yet orderly. If you become inefficient in computing your taxes, you may experience underpaying or overpaying of taxes, both of which will cause damage to your business in the long run. This is exactly why the role of a tax accountant is crucial. It is his responsibility to make sure that the proper computations of taxes are achieved and a thorough record of everything is maintained. Tax software is extremely important for tax accountants because it makes their job a lot faster, easier, and more accurate. It can help any business in paying for its taxes using the least amount of effort.
The other activities involved in tax accounting include litigation consulting services, administrative advisory services, and financial planning services. There is rather an extensive series of conformities to be made, and there is nothing in this world that can help a business with this, better than a tax accounting program.
Cost Accounting Software
Professional accountants use cost accounting for examining the expenses made by a business, and reporting them in order to guarantee financial control. It is somewhat a complex matter, and involves a number of activities such as marginal costing, absorption costing, variance analysis, and break-even. These activities are normally not available to the small businesses since they do not usually have a cost accountant.
The good news for the small businesses, however, is that most of them need not really have expert cost accountants since the proprietor normally has first-hand comprehensive knowledge of all the expenses the business has incurred. Nonetheless, it is only when the bookkeeping records are produced that small businesses can actually stand back and analyze the true effects of the expenses incurred by on the business on its productivity. And by effectively looking at the expenses and the effects of these on productivity from a third-party view can a business take the financial decision to develop profitability.
The use of cost accounting software to produce accounts every month is the first step small businesses must take to develop their profitability. The software must be appropriate for the small business owner’s amount of experience in accounting and the size of his business. The next step is reviewing those generated accounts in order to pinpoint which cost items can be modified. A cost accounting program is similar to job cost accounting software, only that the former is usually used by small businesses while the latter is used by most businesses, regardless of its size.
The primary area in which to analyze all the expenses of a small business is accounting for profit. Cost bookkeeping software applications can prove to be extremely helpful tools in identifying the level and volume of business expenses.
Nonprofit Accounting Software
Non-profit organizations strive to optimize, as much as they can, every cent they have in their funds. Non-profit accounting software products have been particularly designed for this objective, making it possible for non-profit organizations to efficiently go about their work operations without spending too much effort.
Some of the important benefits of this software include the following:
- project management
- finance management
- reports management
- efficient channeling of assets and funds
- comprehensive tracking and maintenance of the employees’ salary information
- monitoring of business expenses given to volunteers
- keeping tab on costs such as materials used and electricity
- tracking of grants, donations and other contributions
- event tracking
- monitoring of attendance of sponsors
- recording of information about donors
School Accounting Software
A school accounting software is a system that basically allows many schools nationwide to do all the accounting processes they will ever need, e.g., ability to customize their tracking and reporting modules, do audit trail, do online processing of school credit cards securely, provide point of sale solutions, do student fee collection processing, etc. With this software, school procedures and processes are simplified such as registrations, collection of data from receipts that are computer generated, tracking of school item sales, online payment options, comprehensive reports and even improvement in communications. Such software for schools are usually very simple and easy to use and alleviate the use of manual and paper based processes that will not only be cheaper in the long run.
Day Care Accounting Software
Day care accounting software is basically used to aid the running and daily management of a daycare facility through the input and tracking of records with just the use of the computer. This software allows operators and owners of daycare centers to be free from the challenges of record-keeping which gives them more time to spend with the children belonging in their daycare program.
An example of the advantage this software can give to daycare facilities is the automatic billing. After fixing the rates schedule for collection in accordance with a timetable, the system will already automatically create the bills, record payments and print receipts. Should your daycare have more complex need from such software, various options and packages are available.
From LoveToKnow Business
Project Accounting Software
If you are the type who wants to be ahead of a project through a detailed and timely revenue and cost information, then Project Accounting Software is for you. This system will allow you to stay on top of any business by giving you various financial data that are vital in your everyday transactions. Some of the services it can accurately provide you are project-to-date totals, revenue information, and your complete financial status. It could give you a cost and revenue roll-up. It can track project financial performance and give you flexible revenue and cost recognition. You may also get a program that is more suitable to the kind of business you are in.
General Ledger Accounting Software
With the help of a General Ledger accounting software, you will be able to store and maintain accurate and complete records of all the transactions done in your business in just one place – your hard drive. For those companies and corporations with double entry bookkeeping systems, having this software will allow them to monitor budgets and prepare financial statements conveniently and with better time efficiency. When buying one, you should not only consider the program that is least costly but one that is more suitable to the business that you have as well as the customer support and installation expense. Consider well the features that are important to you and make sure it is addressed by the software you will choose. Prefer those with a user-friendly interface and the one that is more compliant to your company’s accounting needs.
Farm Accounting Software
If you are in a farm business, there is no better way than to get your own farm accounting software to handle all the financial transaction needs of your business and allow you to devote most of your time to the operation of the business itself. You can either buy one for your use of if you are just starting and on a tight budget, you can opt to modify a generic program that will suit your company’s needs.
Canada, being a country of many farmers, has many Canadian accounting software applications available for their use. One example of this is AgExpert Analyst owned by Farm Credit Canada. Some of the features of this accounting software, Canada based, are its ability to track inventories of various farm commodities and the built-in forms needed by people when filing GST returns, income tax, etc. The common business accounting programs available in the market such as Simple Accounting and QuickBooks can be modified and adjusted to suit your farm accounting needs.
Lease Accounting Software
Residential leases are less complicated than retail commercial ones. Whatever type of leasing business you are in however, you will surely be given a breather and an easier way to deal with your accounting transactions by getting a lease accounting software. If some leasing managers will tell you that simple Excel reports will do the job, think again. Leasing transactions involve complicated tax calculations, common area maintenance, escalations and percentage rent to name a few. It would be quite helpful to be accurate and to spend less time with the use of ready-made software that will automatically compute for the mentioned transactions. Many accounting software providers are aware of such problems faced by leasing companies and are therefore able to make it easy for them by creating programs fit for their exact requirements.
Medical Accounting Software
To be able to give more time to patients and at the same time manage a health care facility without the need to spend most of your time calculating revenues, costs, expenses, tax and what have you, it would be best to get a medical accounting software that will take care of all your accounting needs. With this program, you need not hire an accountant as well as several support staff to deal with the company’s financial aspects. With this software, you will not only be giving patients quality health care and medical expertise but also a well-operated office administration.
These types of medical systems are usually completely customized and designed according to the exact accounting needs in a medical service. With this, you will be able to see the arrears of patients automatically, the bills of suppliers, will remind you of outstanding balances, which may be set annually to hourly. It will also be able to provide you with thorough tracking features as well as the simple everyday reminders, discrepancies, insurers and other vital financial and accounting transactions.
Custom Accounting Software
Why have a shelf accounting program when you can purchase a custom accounting software that you can use, whatever type of business you are in, with its features fitted according to the exact accounting needs of your company? Whether you are in the field of construction, medicine, manufacturing, sales, retail, distribution, etc., there is accounting software fitted for your type of work. You can have it customized according to your exact needs. The payroll, employee attendance, interests, percentages, balances or whatever financial aspect of an enterprise will be addressed by the custom program that you can now buy or download from the Internet. With this software, you can run your business the way you want it.
Investment Accounting Software
Investment accounting software is something you can install in your computer after downloading from the Internet and help you in conducting highly efficient research and studies as an investor. It is also designed to assist you in planning and managing your investments. There are many types of computer accounting software such as this and the desire has always been geared to make the lives of many people a whole lot easier. In the case of an investment program, making wise investment moves and decisions to gain profit is the foremost goal.
Majority of these systems are created to help you with the fundamental as well as technical analysis of your investments such as in forex trading, mutual funds trading, equity trading and other financial market transactions. With the help of this software, your records and data are kept straight and highly organized. You can even interact online with the databases for regular updating.
The more advanced and powerful types of this kind of software contain different functions and options that will allow you to go as far as conducting your own investment administration. This means you can include calculations of united funds, fund administration, multi-currency accounting, income computation, etc. Aside from these high-level functions, it these programs will of course come with the usual basic features such as portfolio management (which includes holding firms, pension funds and insurance companies), coverage provision, mutual fund management and almost every financial need you can think of connected to investing.
Trucking Accounting Software
In any type of business, you can be assured of success if you know every facet of it, especially where your cash is and what it is doing for you.
Before, in the trucking business, there are usually two fleets, one in charge with bringing the cargo and the other of maintaining a number of accountants that pours over the data in order to save and maximize the money of the company. However, these same people that are supposed to save the company much money also cost so much.
Good thing there is now trucking accounting software that will do all the transaction those accountants can do at a much, much lesser price. With just a few clicks, your trucking managers will already be able to access tons of information and allow this data to arrange itself in various ways, according to your requirement. You can customize this software to fit the very needs your trucking company has. With this in your system, you are not only afforded of highly organized and complete information, but also accurate ones. It will not only make the work a lot easier for you but also save you great amounts of money. You may even combine it with other types of accounting software and boost the company’s savings even more.
Construction Accounting Software
Having construction accounting software in your construction business will allow you to have better control fn job costs and make you less wary of risks and manage them. With this software, you can literally have it your way. Some of the advantages you will get from this program are the creation of powerful reports, vital insights on the status of a certain project, simple tax compliance, job costing, financial management, payroll processing, progress billing, equipment tracking, and automated invoicing. These constructions systems vary in terms of functions and even in their prices. A General Construction software is not the same with other construction programs available online.
Government Accounting Software
If you want to be able to spend more of your precious time delivering services to the people and less on accounting processes and funding transactions, then it is about time to make use of government accounting software. Microsoft is one of the providers of this system, with their Microsoft Dynamics GP designed for use of government agencies. With this application, you can manage to focus more on the operation than technology. The software will be the one to handle the tedious tasks such as many government accounting processes, management of budget and grants, adherence to controls and regulations, etc. Part of the functions and features of a government accounting program are as follows:
■ In terms of Account Management
- Get a detailed picture of the financials
- Display in just a single view all details of payables to be able to monitor it easily
- Allow for the determination of each report segment to be able to represent funds, programs, cost centers and divisions
- Segment details drilling
- End of the month accurate reporting
- Allow for the easy management of interfund accounting
- Enables the account balances accuracy
- Allow for automatic transaction study and analysis
- Enables the transfer of funds without the need for manual entry
- Integrate easily with other systems and software.
■ In terms of Interfund Accounting
Pastel Accounting Software
Pastel Accounting Software was developed in South Africa for more than two decades now. Pastel created its company mainly to create various accounting software that will be suited to many types of businesses. It is said to be the choice of 9 of 10 accountants due to its many advantageous features. The company offers several accounting package that will sure to suit not only your accounting needs but also your budget. This software will not only help you get the figures correctly but also tell you what to do with them.
Today, these programs made by Pastel are being used in more than 52 countries globally. They user-friendly and will not require you to be knowledgeable about accounting and bookkeeping to be able to use them. It is the leading brand in South Africa today and will surely be able to help with your company’s growth.
Fixed-Asset Accounting Software
When you speak of fixed asset accounting, you speak of a very difficult task. This is because you need to deal with a myriad of financial aspects that deals with financial control, planning and reporting and fixed asset management.
Any slight error can be quite detrimental and have drastic effect to the business. To be able to automate these tasks without affecting the control and accuracy of data would surely be able to save you a great amount of money, time and effort, not to mention a critical requirement of many companies nowadays. This is where the role of Fixed Asset accounting software comes in. There are many providers of this today and it is up to you to choose which one best suits your company requirements.
Club Accounting Software
This is a great time for club accounting software since more and more people are appreciating the benefits of joining investment clubs. Being a member of one would mean that you are aware of the importance of keeping the books accurate. This is the role of the software. In fact, this club accounting program is one of the first things a new investment club will buy. This will make possible the tracking of finances in the Club. It also makes use of a user-friendly interface that is understandable by any member. This makes the share graphs, print reports, club tax reports and club finances easy to comprehend. Be one of the tens of thousands who already bought and making use of this program.
Mortgage Accounting Software
A mortgage accounting software is a tool you can use to provide you with automated accounting capabilities that allow you to make simply many financial and accounting activities such as daily balancing as connected to movement of mortgages and distribution of mortgage funds. It also supports the management of escrow accounts, real estate transactions, REOs for investors, properties, client accounts and funds deposited by appraisals and lenders more effectively.
This software will allow you easy use and access as it makes use of a user-friendly interface and may be viewed by all clients or just a single client. It has many features and functions like the reconciliation of accounts, transferring of funds, printing of checks, entering of adjustments, editing of transactions and many others.
This program will also enable you to reconcile the mortgage accounts of clients with the bank statements for discrepancies. It also gives a summary of the cleared checks a well as their totals. Moreover, this mortgage accounting program will support in the automation of funds movements from the clearing to disbursement. There are many providers of this software and Microsoft is one of them. You may easily choose the type that will best fit your line of business.
Bookkeeping Accounting Software
A number of bookkeeping accounting software is available in the market to aid many businesses in handling critical financial activities required by an organization. It is essential not only to make the work faster but also more accurate. This program will make it a lot easier for its user to access databases and store these data in a more organized manner. Some of the most popular accounting solutions are Peachtree, QuickBooks, IRIS, Sage Line 50, MYOB, Pro Tax, etc.
Also with this program, the creation of financial statements and other accounting reports are much easier and faster to prepare. It also aids in the handling of tax matters. So for a software that will best suit the type of business you are in, whether manufacturing, retail, distributions, sales, etc., you are surely to be helped by these accounting systems.
Oil and Gas Accounting Software
What a better way to take good control of your stake in an oil and gas company than to acquire for an Oil and Gas Accounting Software. Yes, that is how proficient the market has been that they recognize all the needs of the people no matter how hard or detailed. This kind of software is made precisely for oil and gas companies to make sure that all their financial and accounting needs are met with the quickest, most accurate and least costly means.
With this software, you will be able to monitor and maintain all aspects of accounting requirements such as revenue distributions, general ledger, even the check stub entry for the oil and gas. You will need one time entry of records, which you can already use for other transactions. A package of an oil and gas accounting program usually contains account payable, general ledger, deposit entry, quick check, accounts receivable, financial reporting, bank reconciliation and a lot more. You can have the software customized according to your actual need.
Small Business Accounting Software
Various accounting software business applications can be used to assist you in all your business aspects, whether for a small or big business. You can get the best small business accounting software from the Internet and download them easily after ordering through a credit card. Should you have a small budget for such a software, you can be very resourceful and meticulously scour the Internet for free business accounting software or even the more precise free small business accounting software that you can use for your business while still at its starting stage.
Should you however opt to buy them, it is best to first consider all the small business accounting software reviews that you may find on the Internet before finally making your choice. If you are working on a Microsoft environment, then it is ideal to get Microsoft Small Business Accounting Software that will be compatible with your system. You can also make a thorough small business accounting software comparison to better see which one is more applicable to your line of business or which one can give you better benefit.
Bear in mind that accounting software for small businesses are an ingredient to ensure the success of a business. It makes for easier and quicker flow of multiple operations regardless of the kind of small business. This will enable the entrepreneur to know where his money went or where it is going. It even tells him if he still has money to spend. With the help of a small business accounting software review, you can get an idea which one to choose to be able to simplify your accounting tasks and provide you with your much needed tools and reports for a better and more effective use of your financial data.
Other Kinds of Accounting Software
The number of accounting software mentioned above is already plenty. However, they are just a part of a whole bunch of others. Some of those not included in the preceding topics are hotel accounting software, integrated accounting software, loan accounting software, distribution accounting software, real world accounting software, print accounting software, billing accounting software, automotive accounting software, ecommerce accounting software, invoicing accounting software, time accounting software, access accounting software, asset accounting software. There are still many highly specialized accounting programs out there designed precisely to suit every type of need.
Various Accounting Software Applications according to Operating System
Due to the proliferation of various operating systems of different computer enterprises, the accounting software support that you can also find from various accounting software companies that are compatible with either just a single operating system (OS) or sometimes compatible with multiple operating systems at the same juncture.
It is more likely that you will find more Windows Accounting Software since this is the most common used OS. However, more and more people are making use of other alternatives, most popular of which are Microsoft, Mac and Linux. It may surprise you to know that you can get freeware accounting software on the Internet. They could simply be downloaded and are ready for use. Examples of Internet accounting software that could be taken for free are those that support the three mentioned OS, the Macintosh Accounting Software, the Microsoft Accounting Software and the Accounting Software for Linux.
However, when you speak of accounting software, you do not only speak of one type. There is a huge number of accounting software applications, some may be free but most are for a fee. Accounting software, Linux based, comes in many forms fit for as small as a kitchen table business to a huge multinational corporation. These Linux accounting software applications are commonly accessible in Windows environment. They could serve as either a general file or a print server, or both, for DOS. Some offer packages that are in Graphic User Interface (GUI) and text interfaces.
Just as there are many types of software from Linux, there is also plenty of accounting software vendors that offer various accounting software for Macintosh. These serve as money-managing solutions that help you organize your finances whether on a personal or a business level. They will not only help you with your decisions on spending and saving money but also allow for an easier banking terminology and simplicity most Macintosh applications are famous for.
Other Things to Know About Accounting Software
There must be thousands of online accounting software products out there. Finding them is an easy task. If you will however buy accounting software, it is best to first weed through them all, or at least most of them. It is highly important that the web accounting software that you will choose can provide you with long-term development strategies as well as excellent support. You should find accounting software provider with the following qualities:
- Allows you to have several accounting software demo
- Provides the accounting software application requirements, and also helps you seek the right accounting system for you.
- Gives proposals from various accounting software sales consultants before you make your final decision. It is ideal to get the one with the best price of course.
- Allows you to make accounting software comparisons to be able to recognize the top solutions offered by the industry.
Today’s technology and innovation has allowed the many processes and operation to be computerized. From the smallest to the largest forms of businesses, whatever the endeavor is, computerized software products have already proliferated online and the huge number of web-based accounting software is only a part of them. They have definitely made the lives of many businesses easier, more accurate, quicker and cheaper to name just a few of the basic benefits you can derive from them.
Due however to their being such a new product and a high-tech one at that, many providers are making it easy for consumers to make use of them by providing them with ample support such as accounting software training and accounting software tutorials that will make sure that they will be equipped with the proper knowledge to use them, and use them at their fullest capacity.
The good thing about these accounting software downloads is that they are readily available via the Internet and some of them are free. Those small businesses out there that are not yet equipped to buy highly priced solutions may settle first with those accounting software free of charge, which they can just get form the Internet.
If you do not want to get the free ones being offered to consumers or just could not find a free one that will fit your type of business, you can also opt for the cheap accounting software types instead. With the huge number of these systems being sold online, it is impossible not to get one that will fit your need, even your budget. What is important however is to consider well the accounting software features before you make your purchase to make sure that what you are buying is worth your every penny. To do this, it would be best to first compare accounting software as provided by various vendors and accounting software resellers. To get unbiased accounting software reviews, find some independent sites that specialize in the evaluation of such programs.
Accounting Software Benefits
The very fast increase of the number of accounting software in the market is a clear indication of the strong demand for it. It is easy to assume that businesses are better off with them and are being helped by them tremendously. Whatever your type of business is, you might be surprised that thorough and complete accounting software that suits can be available to you. Just make sure you review accounting software offers and you will find what you need.
Businessman and even individuals would go to great lengths and spend lots of money just to get hold of these accountings systems. This fact is due to the great advantages they can derive from the software. No doubt about it, there is a huge number of accounting software, small and big alike. Below are just a few of the general advantages that can be derived from an accounting system:
- Highly comprehensive history of client payment.
- Systematized storage of data especially the database accounting software type.
- Generation of financial data just with the click of a mouse.
- Quicker to do and more precise and accurate invoicing.
- Solid tracking of receivables.
- Accurate and faster tax calculations.
- Mailing lists useful to your business.
- Tracking of purchasing transactions and outgoing payments.
- Reports including profit and loss, balance sheet, etc.
- Sending of reports by fax or e-mail.
- A whole lot more of advantages vital to a business and even personal use.
Given the above information, you can now confidently deduce that currency day trading can be done more successfully by any one – professional or beginner, with the use of various trading software products and even various accounting software. Forex trading means transactions that have to do with money and one’s success in it also has to do with money. Therefore, there is no better way to take care of that money than by having an accounting software as well as a trading software that you can trust to make things easier, more accurate, more complete, more thorough and quicker for your use.
These trading software applications, also called forex robots, as well as the accounting software products are a dime a dozen these days. With the huge number of these systems being available to you, it may become quite confusing which one to choose to best help you become successful with your endeavor. One thing for sure is that they do work. They can truly pave the way for your success and thereby, wealth. However, you should make sure that you are going to buy or download the ones most useful and the best there is in the market today. The reviews and comparisons on these programs are readily available for your close scrutiny. Make sure to make use of them wisely so as not to regret it in the end.