Free accounting software helps to perform all the tasks performed by a normal accounting software. They are called free as you can download them from the net for free. But, first of all, a few words on what is accounting software all about?

The market of accounting software has gone through takeover and consolidation since the mid 1990s with the entry of larger players such as Microsoft and Sage. The main operation of an accounting software is to record and process accounting transactions of a business within its functional modules. There are great variations in the cost and complexity of an accounting software.

There are various functional modules of accounting software such as that they can be divided in to various sections of accounting. The most common of the core modules are as follows:

1) General ledger which is the company's financial "books".
2) Stock/Inventory section keep track of the inventory of the company.
3) In the Accounts Payable section, the company enters its bills and pays money of owes.
4) In the Accounts Receivable section, money received is entered.
5) Billing is the section where the company produces invoices to the clients.

Some of the non-core modules are as follows:

1) In the Debt Collection module, the company records attempts to collect the overdue.
2) The company tracks wages, salaries and related taxes in the payroll section.
3) In the Expense section, employee business related expenses are recorded.

One category of accounting software is the Personal Accounting software meant mainly for home users. They are simple and inexpensive with simple functioning such as managing budgets. There are also low end accounting softwares for small business markets that are capable of serving a single national market. It is characterized by 'single entry' products. On the other hand, high-end accounting softwares are complex and expensive business accounting software that are also known as Enterprise resource planning or ERP software.

Most of the free accounting software are not high end accounting software, but simple, easy to use accounting software. These free accounting software cater to the needs of home users or small business houses. However, there is a 'Free Accounting Software; which is an intuitive, easy to use, robust, multi-user inventory business management system and accounting software solution with extensive reporting. You can easily download it without any complications. 'Free Accounting Software' support also can be downloaded free from the net with this software.