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Accounting is an essential part of any business system. It is a system of collecting, summarizing, analyzing and reporting, in monetary terms, information about an organization. Any business accounting software would produce different financial statements which would include the balance sheet, profit and loss account, and statement of changes in financial position. These statements provide the basis on which any conclusion regarding the operation of the organization could be made. Therefore, any analysis and interpretation of financial statement would depend on the nature and type of information that will be provided by accounting software. Balance sheet of a company is the most important financial statement of any business organization. In fact, balance sheet is considered to be a fundamental accounting report. Another report which also considered being fundamental is the statement of financial position which is also known as position statement. A balance time provides information about the financial position of an organization at a particular point of time. This report provides what might be called as a 'snapshot' of financial position of the organization. This position would be valid only for the reporting day. On any other day, the report would be different. The financial position of an organization as described in the balance sheet would refer to its resources and obligations and the interests of the business owner. In accounting terms, a balance sheet would contain information regarding assets, liabilities and shareholders' equity. The balance sheet could be presented in two different forms - account form or report form. Usually, a balance sheet is prepared in account form. When it is prepared in report form, the balance sheet is prepared in step wise form which would start by listing assts and then liabilities and owners' equity thereafter. In whatever format any balance sheet is prepared would always contain three components of assets, liabilities and owners' equity. Instead of buying Accounting Software for the organization, there is an option of using accounting software which is available on the internet. This software is known as SaaS which stands for Software as a Service. When you will be using this software, you would not require any physical copy of the software. The biggest advantage of this software, the accounting information of the company could be accessed from any compute anywhere in the world which can access the internet. But, the disadvantage is that all the information would be stored in someone else's computer who is hosting your data. Therefore, from the security point of view it is not a safe option. Every commercial organization, big or small, is using accounting software because it is quite convenient and easy to use.
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