Accounting software is a digital tool designed to assist businesses and individuals in managing financial activities. It helps automate tasks like tracking expenses, processing payroll, generating invoices, and producing financial reports. The software increases efficiency and reduces errors in bookkeeping by offering features such as:
- Monitoring income and expenses
- Managing payroll and taxes
- Producing financial statements (e.g., balance sheets, profit and loss reports)
- Reconciling bank accounts
- Managing inventory and assets
Examples include QuickBooks, Xero, and FreshBooks.