Beginner Guide To Build Custom Accounting Software

By Maryna Cherednychenko

Long gone are the days when accounting was carried out on paper. Today, large and small firms use automated systems that help manage financial affairs quickly and safely. But in a fast-paced world, business goals change quickly, and off-the-shelf systems may not keep up with them. For this reason, companies more and more opt for custom accounting software. It helps implement any, even non-standard, ideas and adapt the program to unique business processes. If you feel the need for such a solution, you are in the right place. Here, we will show you how to get started with account system development.

What Is Accounting Software?

An accounting app is an essential part of business automation. It aims to optimize business processes, minimize errors, and reduce costs. Today, the bookkeeping module often comes as a part of the ERP system. However, we believe it makes more value when designed as a standalone solution. This post will consider the creation of pure accounting software. We will see what features it should include and how to make it secure.

Types Of Accounting Software

Spreadsheet

Examples: Microsoft Excel, Google Spreadsheets.

Commercial accounting software

Example: Sage Accounting

Enterprise accounting software

Example: Xero

Types of accounting software

Deployment Types

On-prem program. Such a program runs on a local server owned by the company. On-prem software is available only on the computer where it is installed, so employees can work with it only from the office and only at certain hours. This solution is somewhat out-of-date in our time when the remote form of work is gaining more and more relevance. Therefore, we suggest that you pay more attention to the following two options.

Web-based software. It assumes buying hosting, on which you deploy your app yourself. The web-based tool is more flexible because it allows users to log in on any device whenever needed. However, it may not be practical if you do not need to make changes or add features constantly. You will need to pay a monthly fee to use the servers, which is quite expensive.

Cloud solution. Account software placed in the cloud is easy to deploy, scale, and support. It differs from a web-based app in that you rent not just a server space but a complete IT infrastructure. Leading cloud providers usually offer a variety of tools for devs, testers, and data science experts. This approach is called software as a service or SaaS and is the best way to start developing quickly and at the lowest cost.

Custom Accounting Software Features

Taxes. Built-in formulas help accountants quickly determine the amount to be sent to the government. Calculation patterns minimize the error chance and speed up the work of financial specialists.

Salaries. Account software can calculate the amount to be paid to each employee for a certain period. For that, you should enter the rate per hour, day, or month and indicate the type of taxation. The program will show the total sum minus taxes and taking into account bonuses and surcharges.

Invoices. Accountants can store, send, and receive invoices directly from the app. You can also save customers’ addresses and names and select the needed ones from the drop-down list when making an invoice. Placing the company logo on docs will grow your brand confidence.

Reports. In a custom program, you can generate reports for both external authorities and internal needs. You can create as many templates and fields as you want and produce reports that are of value to your organization.

Analytics. Deep analytics in absolute and comparative units will help you track financial situations and make timely decisions. Built-in visuals highlight strengths and weaknesses and add value to your reports.

Banking. Linking bank accounts is a must for an accounting program. It helps track the money movement, download statements, and use them to explain transactions to partners and customers.

Payments. You might want to enrich your accounting system with in-built payments. They will enable you to make mandatory payments right from the app while maintaining payment history and receipts.

Accounting software features

How To Make Secure Accounting Software

If, for example, you make an on-prem app, you need to take care of the physical server security, not to mention the protection of the software. In a web app, you are responsible for the secure dev infrastructure. And with the SaaS platform, you mainly rely on the provider’s tools. In any case, you need to pay attention to the following points to build a secure accounting program:

  • Strong network firewall. It protects your tool from malware and hacker attacks.
  • Robust app logic. It takes into account all the nuances of financial calculations and reduces security gaps.
  • High-level encryption. It protects data at all levels of information exchange.
  • Multiple access rights. It prevents software from unauthorized access of not allowed users.

Build Accounting Program With Softensy

This article was originally published at Softensy.

Softensy specializes in fintech development and enterprise-level apps. Our team helps companies automate business processes by developing software solutions.