Different types of accounting software are used for different purposes. The purposes may vary from personal accounting to accounting for a large organization. Some accounting software is used for specific purposes of a specific industry.

Before selecting and using an accounting software you must have a comprehensive and intimate understanding of your organization's business processes. You should select an accounting software package that matches the needs of your company and your client.

Accounting software is broadly used in the following categories.

For personal accounting:- Personal accounting software is for every household. They are very simple and very easy to use. With the help of personal accounting software, you can take the pain out of your day to day life. They are useful for managing your bank account, household budget and administration.

For entry level smaller businesses: This low end accounting software packages are used for managing small businesses. They are inexpensive. These businesses have usually less than $5 million as revenues. The employee strength is around 20. In the US alone, there are about 5 million this type of companies.

In the small and medium business: In this type of companies, mid range accounting softwares are  used. The employee strength of such a firm is not more than 100 and the revenue is around $100 millions. In the US there are 500000 such companies. They are usually capable of performing most of the accounting software modules.

For the small and medium enterprise: This type of software packages cater to the needs of small and medium enterprise. This companies have revenues around $500 million and have about 500 companies. This software packages constitute the middle market accounting softwares. Around 84000 companies fall in this category in the US.

Enterprise resource planning: This type of softwares cater to the high end market of accounting software packages. This type of softwares are for larger organizations with revenues exceeding $500 millions and a employee force of more than 500. There are around 17000 organizations in the US alone fitting in this category.

If you can decide which type accounting software suit your business, you can reap the benefits. You need to determine which software package is appropriate for you. Your software package should not contain more features than you need. It will only add to your cost and can complicate its operations.