An accounting system usually tracks the expenses and income of an organisation or business. However, most accounting methods are modifying in a way which will suit all the needs of a particular business in Accounting for a manufacturing company is very different from an accounting of a retail business. A manager needs to identify the accounting needs of his company and choose an accounting system which will cater to all of these needs.

  • Manufacturers

The work of manufacturers is to produce and assemble products, so the accounting systems which they buy should have inventory, labour hours (here they can use timeregistering to measure the number of hours the employee's work), sales commissions and overheads sales. A Manufacturer can possess three types of inventory raw materials, goods in production and finished goods. A manufacturer should also be aware of the number of hours which are needed to make the product. The payroll system should be divided into three sections; manufacturing labour in hours, administrative employees by salary and staff who are paid with a commission.

  • Retailers

The work of a retailer consists of buying and selling products. An accounting system for a retailer consists of a detailed inventory system. The details included should be: the level of inventory, the yearly turnover rate, reorder points and the profit of every product. Since most retailers usually buy many different products, they need a large accounting system which will have all the information about the status of the accounts payable, available discounts and delivering times. Retailers sell for money, and so they need regular reports on their bank's accounts and also on the credit processing fees and times. If you want real-time reports, then you should connect the POS system directly to the operating system.

  • Distributors

The accounting system of distributors is the same to that one of retailers. Distributors mostly sell their products on credit, and hence they need reports on the accounts receivable. Also, people in the office need to have access to the accounts which are receivable for them to make follow-ups on customers who bought products on credit. Distributors require a detailed data on the inventory, the cost of each item, the sales of each product and the profit on every product.

  • Construction

Contractors require a different accounting software. They need to be in a position where they can track the progress and cost of the building projects. The accounting system of contractors should report the amount of money which is used on materials and which is going to the projects, the amount of labour hours consumed and the percentage of time which will be used to complete the whole project. Contractors usually fund their projects with bank line of credit. So the people giving them funds should have the information on the amount of money withdrawn on the lines of credit and the expiry dates of the loans.

Accounting systems come in different types, and each one is designed differently to cater to the needs of specific businesses. Business owners should identify the needs of their company and buy an accounting system which will cater to the needs of the business.

Author's Bio: 

Marina Pal is a renowned author and social media enthusiast.