There are many types of accounting software applications on the market today. Some applications are intended to perform accounting functions for large corporate organizations. Others are meant for personal use. Still other applications fall somewhere in between, performing functions suited to small businesses, as well as those suited to the average person. Available software ranges from the very simple to the very complex, with much variation in price as well.

Accounting software can be useful in such functions as recording and processing accounts receivable and accounts payable transactions. Some software applications can be used in payroll processing, the documentation of tax transactions, and the creation of related reports. Accounting software can also be used in billing clients and customers and debt collection. Some accounting programs even provide for timesheet record keeping, useful for professionals who need to keep track of the hours they work.

Accounting software that is designed for home use is often referred to as personal accounting software. This type of software is used mostly in managing household budgets and expenses. Some personal accounting software makes it possible to download bank account information directly from the Internet for use with the software.

Low-end accounting software is generally used by smaller businesses and can typically be found for sale by a variety of retailers. Usually, software in this class is not highly specific and can be used for a wide range of businesses. This type of accounting program is usually adequate for such uses as generating invoices, reconciling accounts, and handling payroll.

The next step up in the realm of accounting software consists of applications capable of performing a variety of functions important to business accounting. Referred to as mid-market software, accounting applications in this class perform general business accounting functions and frequently include integrated management information systems. Many software applications at this level are capable of providing for accounting in several different currencies. Mid-market accounting software is usually purchased from a dealer.

Higher-end accounting software is more expensive than other types and is usually much more complex. Generally designed for use by large businesses with millions of dollars in transactions, high-end accounting programs usually have very sophisticated features and options. Software in this class also allows for a high level of customization. Typically, higher-end software is sold through a dealer.

Some companies choose to develop their own accounting software, gearing it completely towards their unique needs. Other companies choose to purchase ready-made software packages. Many organizations employ a combination of the two, purchasing software and applying local modifications to make it more efficient.