Free Accounting Software- Merits and De- Merits

Accounting is one of the main tasks of any business organization. Yet one has to look into so many matters in the field of accounting that the task becomes quite overwhelming to an ordinary person. Only the best accountants will be able to cope up with the job of such a nature. And to pay these accountants the company will have to pocket extra money. But now with the advancement of technologies there have been much innovation in the production of high breed accounting software. This accounting software has been developed to help companies in each stage of their development so that they are not hampered by the lack of good accountants and prosper by the nature of their hard work.

Definition of Accounting Software

Accounting software is application software whose purpose is to record and process accounting transactions within the functional modules like payroll, trial balance, accounts payable and accounts receivable. Thus the accounting software functions as an accounting information system. Different Accounting Software has been developed to use in different fields. Hence, we have specialized Accounting Software for banking, for construction jobs, in medical fields, in non-profit organization, in points of sale (that is Retail), and in Daycare Accounting.

Advantages of Free Accounting Software

♦ Free of cost: The first and foremost merit of free accounting software is that it is free of charge! Hence it encourages start ups and micro businesses to use this product. These small businesses will not get hampered due to a lack of accounting software and they could start up immediately.
♦ Simplified creation of company: It is easier to set up a company with the help of free accounting software
♦ Saves time and energy on everyday jobs:
The free accounting software gets started in minutes.
The company can create invoices and at the same time track time and expenses.
The user had to enter data only once, and this data gets shared seamlessly with others.
One gets to use Office System Programs.
One can easily manage payroll in his office accounting.
♦ Get a complete overview of your business:
With the help of free accounting software you can see suppliers, customers, financial and employee datasheet at one place.
You get business insights
♦ Grow your business online:
You can email your entire invoice and get a faster result by way of prompt payment.
You can have a seamless communication with your customers.
♦ Streamlined online banking: The banking gets streamlined.
♦ Budgeting: Customers can create online budgets and track how they compare with the actual results thus, having a better control over their finances.

The Drawbacks of Free Accounting Software
1. Generally free accounting software comes with a reduced availability of support so as to encourage customers to buy the product.
2. Free accounting software is generally available for a short time trial period, after which it expires.
3. Unless you buy the license key you do not get multi-user access to the SQL Server Express database.
4. The free accounting software hides much of the feature like online tax calculator, Payroll data, etc.

Hence taking into account all the advantages and disadvantages of Free Accounting Software an individual can decide best whether it is suitable for him or not.

See also Pros and Cons of Free Accounting Software