How do I choose accounting software to run my small business's books on?

What you are actually choosing: the ledger that holds your books, not the tools that feed it

The article claims as an advantage that the accounting information system organizes business transactions from across an organization into a central repository, and that this centralized storage keeps transactional data consistent and ensures it is overseen by one department, the accounting department. (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations operating an accounting information system, conditions: stated as an advantage of operating such a system, not as a requirement)

“Centralized repository . The system organizes business transactions from across an organization, storing it in a central repository. This centralized storage keeps transactional data consistent, and ensures that it is overseen by one department - the accounting department.”

The article treats sales, purchasing, payroll, inventory and general ledger as distinct functions between which integration allows data to flow automatically, and states that such integration reduces duplicate entry, improves accuracy, speeds reporting and gives management a more complete and timely view of business activity and financial results; the list of functions is open ('such as'). (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations operating an accounting information system, conditions: function list illustrative, not closed; no requirement that any function be integrated is stated)

“Integration is important in an accounting information system because it allows data to flow automatically between functions such as sales, purchasing, payroll, inventory, and general ledger. This reduces duplicate entry, improves accuracy, speeds reporting, and gives management a more complete and timely view of business activity and financial results.”

The article describes the accounting information system as accepting data inputs from a variety of sources, such as sale transactions, cash receipts, supplier invoices and payroll time cards, storing those inputs and validating them with internal controls, and then generating outputs that include financial statements, analytics and department-level reports; the source and output lists are open ('such as', 'include'). (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: accounting information systems generally, conditions: input and output lists are illustrative, not closed)

“An accounting information system accepts data inputs from a variety of sources, such as sale transactions, cash receipts, supplier invoices, and payroll time cards. These inputs are stored within the AIS, which uses a number of internal controls to validate them. The system then generates outputs as needed, which include financial statements, analytics, and department-level reports.”

AccountingTools defines an accounting information system as a system that accumulates, stores and processes financial and accounting information, and states that it generates reports used to make decisions about how the organization is run and also used by outsiders evaluating lending and investment opportunities with the firm. (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations generally, described as 'an organization' / 'the firm')

“An accounting information system (AIS) is one that accumulates, stores, and processes financial and accounting information. The system generates reports that are used to make decisions regarding how an organization is to be run. These reports are also used by outsiders to evaluate lending and investment opportunities with the firm.”

Start from your own books: turn how your business operates into a requirement list

The article states that the reports it lists together allow an accounting information system to support transaction processing, financial control, decision-making and external reporting, and expressly qualifies that the exact set of reports varies by organization, the listed ones being the main ones commonly generated in practice. (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations generally; the report set is stated to vary by organization, conditions: explicitly non-exhaustive; 'varies by organization', 'commonly generated')

“Together, these reports allow an accounting information system to support transaction processing, financial control, decision-making, and external reporting. The exact set of reports varies by organization, but these are the main ones commonly generated in practice.”

Inventory features are available for the QuickBooks Online Plus and Advanced plans, and a Simple Start or Essentials user who wants inventory tracking may either buy the inventory add-on or upgrade their QuickBooks subscription. (jurisdiction: United States (QuickBooks Online US edition help article, en-us), entity_scope: QuickBooks Online subscribers on Simple Start, Essentials, Plus or Advanced, platform: QuickBooks Online, platform_edition: QuickBooks Online Simple Start / Essentials / Plus / Advanced, as described on 6/17/2026, conditions: add-on or upgrade route applies to users on Simple Start or Essentials; no amounts or prices are stated by the article)

“Inventory features are available for QuickBooks Online Plus and Advanced. If you use QuickBooks Online Simple Start or Essentials and would like to start using inventory tracking, you can buy the inventory add-on or upgrade your QuickBooks subscription .”

Not established from an authoritative source.

Who has to work in the file: users, roles and your accountant's access

Intuit states that a business can also give its accountant access to the company's books. (jurisdiction: United States, entity_scope: Businesses using QuickBooks Online that wish to give an accountant access, platform: QuickBooks Online, platform_edition: US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05)

“You can also give your accountant access to your company’s books .”

Intuit states that the number of users you can add is determined by your subscription level (the article gives no per-tier user numbers here). (jurisdiction: United States, entity_scope: QuickBooks Online subscribers adding users, platform: QuickBooks Online, platform_edition: US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05)

“Your subscription level determines how many users you can add.”

Intuit states that upgrading to QuickBooks Online Advanced lets you add unlimited accounts or users. (jurisdiction: United States, entity_scope: QuickBooks Online subscribers who upgrade to the Advanced tier, platform: QuickBooks Online, platform_edition: QuickBooks Online Advanced, US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05, conditions: conditional on upgrading to QuickBooks Online Advanced)

“You can add unlimited accounts or users if you upgrade to QuickBooks Online Advanced .”

Intuit states that an invited user can create a new Intuit account, or sign in with an existing Intuit account, in order to accept the invite. (jurisdiction: United States, entity_scope: New users invited to a QuickBooks Online company, platform: QuickBooks Online, platform_edition: US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05, conditions: on accepting the invite)

“They can create a new Intuit account or just sign in if they already have one.”

Partly established. Established: user count as part of the access and collaboration requirement (S12, S13); roles as part of the access and collaboration requirement (S14). Missing: what an outside bookkeeper or preparer needs in order to work in the file; the access and collaboration requirement treated as a selection constraint rather than something arranged after the choice.

Getting data in: check the bank feeds and connections for your own institutions

Setting up online banking in QuickBooks connects the user's bank and credit card accounts so that transactions download automatically. (jurisdiction: United States (Intuit en-us QuickBooks help article), entity_scope: QuickBooks Online and QuickBooks Self-Employed users connecting bank and credit card accounts, platform: QuickBooks Online; QuickBooks Self-Employed, platform_edition: US (en-us) help article, updated 8/5/2026, conditions: user has set up online banking)

“When you set up online banking , you connect your bank and credit card accounts to automatically download transactions.”

QuickBooks maintains a list of supported banks, and when a searched bank is not found the user is shown the message that it cannot be found in that list, along with tips for locating the account. (jurisdiction: United States (Intuit en-us QuickBooks help article), entity_scope: QuickBooks Online users searching for a financial institution under Link account, platform: QuickBooks Online, platform_edition: US (en-us) help article, updated 8/5/2026, conditions: QuickBooks is unable to find the bank searched for)

“Search for the name of your financial institution. If QuickBooks is unable to find your bank, you will get the message, "Hmm, we can’t find [name of the bank you entered] in our list of supported banks," and you will be presented with helpful tips to try and locate your bank account.”

Where the search and request steps do not resolve the issue, the user may still be able to download transactions from the bank's own website and manually upload them to QuickBooks Online. (jurisdiction: United States (Intuit en-us QuickBooks help article), entity_scope: QuickBooks Online users unable to connect a bank feed, platform: QuickBooks Online, platform_edition: US (en-us) help article, updated 8/5/2026, conditions: none of the preceding steps solves the issue)

“Tip : If none of the above steps solves the issue, you may still be able to download transactions from your bank's website and manually upload them to QuickBooks Online.”

Partly established. Established: verifying availability for the reader's own institutions and platforms rather than accepting a general claim of connectivity (S19). Missing: which feeds the business depends on; which connections the business depends on; which import routes the business depends on.

Getting data out: the reports you owe your readers and the ability to pull the ledger itself

Financial statements are summary-level reports on an organization's financial results, financial position and cash flows, and they include (list stated as open, not exhaustive) the income statement, balance sheet and statement of cash flows. (jurisdiction: Not limited by the text; US-published general accounting guidance (AccountingTools, US CPE publisher) that elsewhere references both U.S. GAAP and IFRS, entity_scope: organizations generally)

“Financial statements are a collection of summary-level reports about an organization's financial results, financial position , and cash flows . They include the income statement, balance sheet, and statement of cash flows.”

At a minimum, a business is expected to issue an income statement and a balance sheet documenting its monthly results and ending financial condition. (jurisdiction: Not limited by the text; US-published general accounting guidance, entity_scope: businesses generally, conditions: monthly reporting)

“At the most minimal level, a business is expected to issue an income statement and balance sheet to document its monthly results and ending financial condition.”

Reports and lists can be exported as Excel files delivered in one .zip file, which the article says lets the user save information from posting transactions that impact account balances, including invoices, receipts or bills (list given as 'includes', not closed). (jurisdiction: United States (en-US QuickBooks Online help edition), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, platform_edition: QuickBooks Ledger; QuickBooks Online Advanced, Essentials, Plus, Simple Start, Free, Lite; QuickBooks Solopreneur; QuickBooks Solopreneur Plus (as listed on the article), effective_from: 2026-08-03)

“Export your reports and lists as Excel files in one .zip file. This lets you save info from posting transactions that impact your account balances. This includes invoices, receipts, or bills.”

The Account List report, and so the chart of accounts, is exported to Excel from the Export/Print dropdown. (jurisdiction: United States (en-US QuickBooks Online help edition), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, effective_from: 2026-08-03)

“Select the Export/Print ▼ dropdown, then select Export to Excel .”

Exported attachments are delivered in a zip file. (jurisdiction: United States (en-US QuickBooks Online help edition), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, effective_from: 2026-08-03)

“Note: Your attachments will be exported in a zip file.”

Partly established. Established: the reports the business needs (S30); the ability to extract the ledger in a usable form (S21, S22); the ability to extract the ledger's supporting detail in a usable form (S23, S24). Missing: the reports the business's outside readers need; the chosen system leaving the business's records complete; the chosen system leaving the business's records retrievable.

Required authority: high quality professional secondary reference, official platform documentation, primary regulator or government. Highest achieved: high quality professional secondary reference, official platform documentation.

Compare total cost, not headline price: tiers, per-user and per-worker charges, add-ons

See Inventory features are available for the QuickBooks Online Plus and Advanced plans, and a Simple Start or Essentials user who wants inventory tracking may either buy the inventory add-on or upgrade their QuickBooks subscription.

Zoho Books defines add-ons as additional capabilities not included in the customer's current plan that are made available for separate purchase according to the customer's requirements; this is a definition, not a list of which capabilities are add-ons. (jurisdiction: United States (Zoho Books Help Docs US-EN edition), entity_scope: Zoho Books paid-plan subscribers, platform: Zoho Books, platform_edition: US-EN help centre edition, page 'Plans for Zoho Books' (retrieved 2026-09-08), conditions: the page does not enumerate the add-ons or their prices)

“In Zoho Books, add-ons are additional capabilities that aren’t included in your current plan, but are made available to be purchased based on your specific requirements.”

The page illustrates add-ons with an example in which a plan caps the number of users that can be invited and additional users can be purchased as an add-on; the '5 users' figure is part of the example, not a stated plan limit. (jurisdiction: United States (Zoho Books Help Docs US-EN edition), entity_scope: Zoho Books paid-plan subscribers, as an illustrative example, platform: Zoho Books, platform_edition: US-EN help centre edition, page 'Plans for Zoho Books' (retrieved 2026-09-08), conditions: hypothetical example introduced by 'Let’s say'; no price per additional user is stated)

“Let’s say your plan allows you to invite up to 5 users to your organization. However, you want to add more than 5 users. Then, you can purchase the required number of users as an add-on.”

The first monthly Wave payroll bill includes only the monthly subscription fee and excludes contractor and active employee fees, so the subscription fee and the per-worker fees are separate charge classes. (jurisdiction: Not stated in the document; Wave Help Center en-us article covering Wave's payroll subscription product at waveapps.com, entity_scope: Wave customers in their first month of a payroll subscription, platform: Wave, conditions: first monthly bill only)

“Your first monthly bill will only include the monthly subscription fee, without any contractor or active employee fees.”

Wave's payroll subscription bill increases with additional charges when active employees are added, employees are made active again after leave, or additional contractors are paid in the previous month — so payroll cost varies with the number of workers paid. (jurisdiction: Not stated in the document; Wave Help Center en-us article covering Wave's payroll subscription product at waveapps.com, entity_scope: Wave customers with a payroll subscription, platform: Wave, conditions: employees added, returned from leave, or additional contractors paid in the previous month)

“If you have added active employees, made employees off leave active again, or paid additional contractors in the previous month, your payroll subscription bill will reflect the additional charges.”

Not established from an authoritative source.

What leaving would cost: what you could take with you and in what form

See Reports and lists can be exported as Excel files delivered in one .zip file, which the article says lets the user save information from posting transactions that impact account balances, including invoices, receipts or bills (list given as 'includes', not closed).

Exporting a customer statement proceeds customer by customer: the user selects the customer whose statement is needed. (jurisdiction: United States (en-US QuickBooks Online help edition), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, effective_from: 2026-08-03)

“Select the customer whose statement you need to export.”

Sage 50 offers a conversion wizard that converts most — not stated as all — of a QuickBooks company's lists and transactions into the Sage 50 format, with what is converted depending on the choices the user makes during the wizard. (jurisdiction: United States (Sage 50 U.S. edition help, en-us), entity_scope: Businesses moving an existing QuickBooks company into Sage 50, platform: Sage 50 (U.S.), platform_edition: 2026, conditions: depends on the user's choices during the conversion wizard; 'most' lists and transactions, not all)

“Sage 50 will convert most lists and transactions in QuickBooks to the Sage 50 format, depending on your choices during the conversion wizard.”

The chart of accounts, together with the current balance for each account, is among the items the QuickBooks-to-Sage 50 conversion brings across. (jurisdiction: United States (Sage 50 U.S. edition help, en-us), entity_scope: Businesses converting a QuickBooks company to Sage 50, platform: Sage 50 (U.S.), platform_edition: 2026, conditions: conversion performed through the Sage 50 conversion wizard; current balances only; the document does not state that full account transaction history is carried)

“Chart of accounts and current balances for each account”

Wave charges employee and contractor fees after the month ends, so a customer who cancels still receives a final bill carrying the employee and contractor fees for the final month of service. (jurisdiction: Not stated in the document; Wave Help Center en-us article covering Wave's payroll subscription product at waveapps.com, entity_scope: Wave customers cancelling a payroll subscription, platform: Wave, conditions: on cancellation of the payroll subscription)

“Wave's payroll subscription charges employee and contractor fees after the month ends. When you cancel, your final bill will have employee and contractor fees for your final month of service.”

Partly established. Established: what the business could take with it (S26); in what form the business could take it (S21, S22, S23, S26). Missing: what a later change would cost; exit cost and lock-in assessed before commitment rather than at the point of leaving.

Required authority: official platform documentation. Highest achieved: official platform documentation.

How to test candidates before you commit: trials and what they let you try

Zoho Books offers a 14-day free trial that a prospective subscriber can sign up for before subscribing to a paid plan, and the page says the trial allows the user to explore five paid plans, which it names as Standard, Professional, Premium, Elite and Ultimate. (jurisdiction: United States (Zoho Books Help Docs US-EN edition), entity_scope: prospective Zoho Books subscribers, before subscribing to a paid plan, platform: Zoho Books, platform_edition: US-EN help centre edition, page 'Plans for Zoho Books' (retrieved 2026-09-08), conditions: trial length stated as 14 days; plan names as listed on this page for this edition; the page states elsewhere that offerings vary by edition)

“Before subscribing to a paid plan, you can sign up for a 14-day free trial. This trial allows you to explore five different paid plans: Standard, Professional, Premium, Elite, and Ultimate.”

Signing up for Zoho Books places the user on a 14-day trial period, during which the user can try out Zoho Books. (jurisdiction: United States (US-EN edition of the Zoho Books FAQ), entity_scope: users who sign up for Zoho Books, platform: Zoho Books, platform_edition: US-EN edition, page as retrieved 2026-09-08; no last-updated date displayed, conditions: applies on sign-up)

“When you sign up for Zoho Books, you will be on a 14-day trial period during which you can try out Zoho Books.”

A user who finds the two weeks insufficient to evaluate the product can extend the trial period by an additional 14 days; the page does not state any approval step or limit beyond that single additional extension it describes. (jurisdiction: United States (US-EN edition of the Zoho Books FAQ), entity_scope: users on a Zoho Books trial, platform: Zoho Books, platform_edition: US-EN edition, page as retrieved 2026-09-08; no last-updated date displayed, conditions: where the user finds the initial two weeks insufficient to evaluate the product)

“If you find the two weeks insufficient to evaluate our product, you can also extend the trial period by an additional 14 days.”

A trial user who is satisfied with the product can upgrade to a paid plan. (jurisdiction: United States (US-EN edition of the Zoho Books FAQ), entity_scope: Zoho Books trial users, platform: Zoho Books, platform_edition: US-EN edition, page as retrieved 2026-09-08; no last-updated date displayed, conditions: once satisfied with the product)

“Once you’re satisfied with the product, you can upgrade to a paid plan.”

Not established from an authoritative source.

Which capability areas your business facts decide — inventory, payroll, segment reporting and the rest

See The article states that the reports it lists together allow an accounting information system to support transaction processing, financial control, decision-making and external reporting, and expressly qualifies that the exact set of reports varies by organization, the listed ones being the main ones commonly generated in practice.

The departmental performance report is described as showing revenues, expenses and profits by department, division or business segment, which helps management evaluate the performance of different parts of the organization. (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations with departments, divisions or business segments, conditions: stated for department, division or business segment only; the article does not extend this to job or project costing)

“Departmental performance report . This report shows revenues, expenses, and profits by department, division, or business segment. It helps management evaluate the performance of different parts of the organization.”

Not established from an authoritative source.

How the systems actually deliver those capabilities: core, paid tier, add-on, feed or import

See Inventory features are available for the QuickBooks Online Plus and Advanced plans, and a Simple Start or Essentials user who wants inventory tracking may either buy the inventory add-on or upgrade their QuickBooks subscription.

See Setting up online banking in QuickBooks connects the user's bank and credit card accounts so that transactions download automatically.

See Where the search and request steps do not resolve the issue, the user may still be able to download transactions from the bank's own website and manually upload them to QuickBooks Online.

See Sage 50 offers a conversion wizard that converts most — not stated as all — of a QuickBooks company's lists and transactions into the Sage 50 format, with what is converted depending on the choices the user makes during the wizard.

See The chart of accounts, together with the current balance for each account, is among the items the QuickBooks-to-Sage 50 conversion brings across.

General journal entries are among the QuickBooks transaction types converted into Sage 50. (jurisdiction: United States (Sage 50 U.S. edition help, en-us), entity_scope: Businesses converting a QuickBooks company to Sage 50, platform: Sage 50 (U.S.), platform_edition: 2026, conditions: conversion performed through the Sage 50 conversion wizard)

“General journal entries”

Wave has paid services other than the payroll subscription, and charges seen by a customer may relate to such another paid feature rather than to payroll. (jurisdiction: Not stated in the document; Wave Help Center en-us article covering Wave's payroll subscription product at waveapps.com, entity_scope: Wave customers using more than one Wave service, platform: Wave, conditions: customer uses another paid service in Wave)

“If you use another paid service in Wave, those charges may be for that feature.”

See Zoho Books defines add-ons as additional capabilities not included in the customer's current plan that are made available for separate purchase according to the customer's requirements; this is a definition, not a list of which capabilities are add-ons.

Which add-ons are available varies by Zoho Books edition, and the page directs the reader to the pricing plan page for the add-ons available in their own edition. (jurisdiction: United States (Zoho Books Help Docs US-EN edition; the page itself states availability differs by edition, and lists country editions including Australia, Canada, India, Mexico, United Kingdom, United States and Global), entity_scope: Zoho Books subscribers, per edition, platform: Zoho Books, platform_edition: US-EN help centre edition, page 'Plans for Zoho Books' (retrieved 2026-09-08), conditions: edition-dependent)

“Note: The availability of add-ons varies based on your edition. To learn more about the add-ons available for your edition, visit our pricing plan page.”

See Zoho Books offers a 14-day free trial that a prospective subscriber can sign up for before subscribing to a paid plan, and the page says the trial allows the user to explore five paid plans, which it names as Standard, Professional, Premium, Elite and Ultimate.

Not established from an authoritative source.

What a system lets you export, in what form and how completely

See Reports and lists can be exported as Excel files delivered in one .zip file, which the article says lets the user save information from posting transactions that impact account balances, including invoices, receipts or bills (list given as 'includes', not closed).

See The Account List report, and so the chart of accounts, is exported to Excel from the Export/Print dropdown.

See Exported attachments are delivered in a zip file.

Non-posting transactions, which do not impact the user's reports, are exported through a separate set of procedures from the reports-and-lists export. (jurisdiction: United States (en-US QuickBooks Online help edition), entity_scope: Businesses using QuickBooks Online, platform: QuickBooks Online, effective_from: 2026-08-03)

“Export non-posting transactions that don't impact your reports.”

See Exporting a customer statement proceeds customer by customer: the user selects the customer whose statement is needed.

Not established from an authoritative source.

The access model: named users by tier, roles, and what an outside professional needs on their side

See Intuit states that a business can also give its accountant access to the company's books.

See Intuit states that the number of users you can add is determined by your subscription level (the article gives no per-tier user numbers here).

See Intuit states that upgrading to QuickBooks Online Advanced lets you add unlimited accounts or users.

Intuit states that certain roles do not count toward the user limit, giving Reports and Time tracking only as examples (the examples are not presented as an exhaustive list). (jurisdiction: United States, entity_scope: QuickBooks Online subscribers adding users, platform: QuickBooks Online, platform_edition: US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05)

“Certain roles don't count toward your user limit , like Reports or Time tracking only .”

Intuit states that custom roles and preset roles such as project manager, sales manager, bill clerk, bill approver, bill payer, expense manager, payroll manager and inventory manager must be selected from the role dropdown next to the individual company; the named roles are given as examples, not a closed list. (jurisdiction: United States, entity_scope: Multi-entity Intuit Enterprise Suite groups, platform: Intuit Enterprise Suite, platform_edition: US (en_US) help article updated 8/5/2026, effective_from: 2026-08-05, conditions: assigning a custom role or these preset roles)

“To assign a user to a custom role or preset role like project manager, sales manager, bill clerk, bill approver, bill payer, expense manager, payroll manager, and inventory manager, you need to select the role from the role ▼ dropdown next to the individual company.”

See Intuit states that an invited user can create a new Intuit account, or sign in with an existing Intuit account, in order to accept the invite.

Not established from an authoritative source.

Keeping your records complete, accurate and retrievable whatever software you run

Not established from an authoritative source.

The cost classes that decide the comparison

See Inventory features are available for the QuickBooks Online Plus and Advanced plans, and a Simple Start or Essentials user who wants inventory tracking may either buy the inventory add-on or upgrade their QuickBooks subscription.

See Zoho Books defines add-ons as additional capabilities not included in the customer's current plan that are made available for separate purchase according to the customer's requirements; this is a definition, not a list of which capabilities are add-ons.

See The page illustrates add-ons with an example in which a plan caps the number of users that can be invited and additional users can be purchased as an add-on; the '5 users' figure is part of the example, not a stated plan limit.

A user can subscribe to a paid Zoho Books plan either during the trial period or after it ends, and the paid plans are offered as monthly or yearly subscriptions. (jurisdiction: United States (Zoho Books Help Docs US-EN edition), entity_scope: Zoho Books trial and paid subscribers, platform: Zoho Books, platform_edition: US-EN help centre edition, page 'Plans for Zoho Books' (retrieved 2026-09-08))

“Once the trial period ends, or even during the trial period, you can subscribe to a paid plan that suits your requirements. These paid plans are offered as monthly or yearly subscriptions.”

See The first monthly Wave payroll bill includes only the monthly subscription fee and excludes contractor and active employee fees, so the subscription fee and the per-worker fees are separate charge classes.

See Wave's payroll subscription bill increases with additional charges when active employees are added, employees are made active again after leave, or additional contractors are paid in the previous month — so payroll cost varies with the number of workers paid.

See Wave charges employee and contractor fees after the month ends, so a customer who cancels still receives a final bill carrying the employee and contractor fees for the final month of service.

Not established from an authoritative source.

The ledger system of record and the functions that feed it

See The article claims as an advantage that the accounting information system organizes business transactions from across an organization into a central repository, and that this centralized storage keeps transactional data consistent and ensures it is overseen by one department, the accounting department.

See The article treats sales, purchasing, payroll, inventory and general ledger as distinct functions between which integration allows data to flow automatically, and states that such integration reduces duplicate entry, improves accuracy, speeds reporting and gives management a more complete and timely view of business activity and financial results; the list of functions is open ('such as').

See The article describes the accounting information system as accepting data inputs from a variety of sources, such as sale transactions, cash receipts, supplier invoices and payroll time cards, storing those inputs and validating them with internal controls, and then generating outputs that include financial statements, analytics and department-level reports; the source and output lists are open ('such as', 'include').

The general ledger report is described as listing all account activity recorded in the accounting system and serving as the central summary of financial transactions by account. (jurisdiction: Not restricted by the document; general discussion published by US-based AccountingTools with no country-specific limitation stated, entity_scope: organizations operating an accounting information system, conditions: listed among 'the more common reports')

“General ledger report . The general ledger report lists all account activity recorded in the accounting system. It serves as the central summary of financial transactions by account.”

Not established from an authoritative source.

The reporting outputs your books have to produce for you and for outside readers

See Financial statements are summary-level reports on an organization's financial results, financial position and cash flows, and they include (list stated as open, not exhaustive) the income statement, balance sheet and statement of cash flows.

See At a minimum, a business is expected to issue an income statement and a balance sheet documenting its monthly results and ending financial condition.

The article lists, as one reason financial statements are useful, determining whether a business has the capability to pay back its debts. (jurisdiction: Not limited by the text; US-published general accounting guidance, entity_scope: businesses generally)

“To determine whether a business has the capability to pay back its debts.”

The article lists, as one reason financial statements are useful, serving as the basis for an annual report distributed to a company's investors and the investment community. (jurisdiction: Not limited by the text; US-published general accounting guidance, entity_scope: companies that distribute an annual report to investors and the investment community)

“To use as the basis for an annual report , which is distributed to a company’s investors and the investment community.”

For internal-use statements the controller generally (hedged) uses a format approximating the external reporting layout, though it may contain additional detail that outsiders would find excessive; that additional detail is used by managers to monitor the business. (jurisdiction: Not limited by the text; US-published general accounting guidance, entity_scope: entities issuing statements strictly for internal use, conditions: only statements issued strictly for internal use)

“If so, the controller generally uses a format that approximates the layout used for external reporting, though it may contain some additional detail that would be considered excessive by outsiders. The additional level of detail is used by managers to monitor the business.”

Partly established. Established: reporting outputs a small business's books must be able to produce for the business itself (S30); reporting outputs the books must produce for a lender (S32); reporting outputs the books must produce for an investor (S33). Missing: reporting outputs the books must produce for an outside bookkeeper or tax preparer; reporting outputs the books must produce for an owner not working in the books.