The accounting software market today is categorized into four market segments. Each segment is based on the size of the organization in terms of its revenue. A company with revenue of $200,000 would probably be classified within the small companies market segment. On the other hand, a large, Fortune 500 corporation might purchase accounting software systems in the tier 1 market segment—that is, an ERP system.
Often these software solutions are chosen to more fully integrate business processes across the organization. The programs listed in Exhibit. 2-4 are based on modern technology, and each attempts to integrate many business processes into a single software system.
Large, multinational corporations have specific needs for accounting software. The most widely used tier 1 ERP system for large corporations is SAP. Regardless of the type of accounting software used, computer processing is involved in the input of data, and the processing of that data. The next section describes many of the input and processing methods used. In addition, the types of outputs produced are described.
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