Accountancy · Ch 14 — Computerised Accounting
Types of Accounting Packages
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Types of Accounting Packages
6. Types of Accounting Packages
Accounting software (an "accounting package") can be classified into three broad types, based on how closely it is built to match one specific business's needs:
- Ready-to-use Software — a standard package designed for common, general accounting needs, requiring little or no customisation. Suited to small businesses with straightforward requirements; it is the least expensive option, but offers the least flexibility to match any unusual business need.
- Customised Software — a standard package that is MODIFIED to suit a specific business's particular requirements — for instance, adding a report format or a feature the standard package does not offer by default. Suited to mid-sized businesses whose needs are mostly standard but not entirely; it costs more than ready-to-use software but far less than building a package from scratch.
- Tailor-made Software — software built ENTIRELY from scratch, designed specifically around one large organisation's own unique, often complex, requirements. This is the most expensive and time-consuming option, but gives the organisation exactly the functionality it needs, with no compromise.
| Type | Customisation | Typical User | Relative Cost |
|---|---|---|---|
| Ready-to-use | None/minimal | Small business, standard needs | Lowest |
| Customised | Partial, built on a standard base | Mid-sized business, mostly standard needs | Medium |
| Tailor-made | Built entirely from scratch | Large organisation, unique/complex needs | Highest |
Definition 1Accounting Package
Software used to maintain accounting records in a Computerised Accounting System — classified as Ready-to-use, Customised, or Tailor-made, depending on how closely it is built to on …