User:Obrienp1016/Accounting software

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Accounting software is a computer program that maintains account books on computers, including recording transactions and account balances. Depending on the purpose, the software can manage budgets, perform accounting tasks for multiple currencies, perform payroll and customer relationship management, and prepare financial reporting. The first accounting software was introduced in 1978. Since then, the accounting software has revolutionized from supporting basic accounting operations to performing real-time accounting and supporting financial processing and reporting. Cloud accounting software was first introduced in 2011, and it allowed to perform all accounting functions through the internet. In recent years, blockchain technology was introduced in accounting software, where it offers different ways of information keeping.

Implementation
In many cases, implementation (i.e. the installation and configuration of the system at the client) can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Most mid-market and larger applications are sold exclusively through resellers, developers, and consultants. Those organizations generally pass on a license fee to the software vendor and then charge the client for installation, customization, and support services. Clients can normally count on paying roughly 50-200% of the price of the software in implementation and consulting fees.[citation needed]

Other organizations sell to, consult with, and support clients directly, eliminating the reseller. Accounting software provides many benefits such as speed up the information retrieval process, bring efficiency in Bank reconciliation process, automatically prepare Value Added TAX (VAT) / Goods and Services TAX (GST), and, perhaps most importantly, provide the opportunity to see the real-time state of the company’s financial position.[citation needed]

Personal accounting
See also: Personal finance

Personal accounting software is simple in design and is used mostly for individuals. Some activities that it supports are accounts payable-type accounting transactions, managing budgets, and simple account reconciliation. It is relatively inexpensive compared to the other accounting options. One of the more common uses of personal accounting software is for tax preparation. This software is used to file tax returns in a format suitable with the Internal Revenue Service. An example of such software would be TurboTax.

Cloud Accounting Software
Cloud Accounting Software is where financial information can be accessed from any device connected to the Internet at any time even though the financial data itself is located at a centralized computer. This differs from more traditional accounting software as it is restricted to a certain computer or system of computers and that accounting information can not be easily accessed from other devices. Some reasons cloud accounting software is preferred by users is there is no need to worry about maintenance or hardware system upgrades, it can reduce overall costs, and that a user can gain access from multiple locations. One of the primary reasons cloud accounting software is not being used is the threat of the security of the data. Some of the more common examples of Cloud Accounting Software include Cloud Elements, IBM App Connect, IFTTT, and Zapier

Blockchain in Accounting Software
Blockchain is a distribution of records shared among participating parties. Blockchain can verify the record through agreement of changes using the automated system. If an existing record is altered in the accounting system, the majority of the parties in the subsequent nodes need to agree with the change. All transactions recorded in blockchain are transparent and are difficult to alter. Blockchain affects the auditing process by reducing data collection and evaluation time. Since blockchain is a decentralized system, authorities needed for the transactions between the two parties are eliminated. In addition, entering records in blockchain will allow a synchronized ledger on a real-time basis and simplify the double-entry accounting process. Furthermore, blockchain technology introduces triple entry accounting to eradicate trust and transparency problems.

Data Privacy and Security
Privacy in cloud computing is in constant risk of disclosure when in possession of a third party. Factors resulting in distrust of privacy include unauthorization, unpredictability, and conformity. Security threats vary from different cloud environments and interactions and can cause significant risks that must be considered specific to that origin. Unauthorization is a threat stemming from allowing third party organizations to handle an individual's data and the user not having full control. Lack of user control is the effect of keeping data in the cloud, as opposed to one's own local host, and increases user's level of unpredictability. Legislative complexity impacts cloud computing in where the data is being stored and the laws that data in that location, or locations, must follow. While cloud computing and traditional IT environments may pose differing privacy issues, the security controls are generally similar.

With the emergence of decentralized software, the security of the network depends on each node. Nodes receive information from other nodes, and must authenticate the other distinguished node. When validation is complete, the node will enter the information into the network. Unlike traditional centralized systems that have access to trusted regulation, the decentralized systems can avoid data leaks or network crashes with enhanced security by not having to deal with central control failures. With decentralized systems, each node in the system is responsible for controlling the data.