The advantages of using accounting software have been growing at an astounding rate ever since the potential of computing was first used to displace large armies of accountants who worked with pen and paper. The fierce competition that exists between software developers has resulted in an incredible variety of functionalities being made available to enterprises. Each company that sells accounting software competes with one another in an effort to get a larger market share. The interaction between users and developers to suggest enhancements drives the continual development of user interfaces. Software developers are constantly coming up with new concepts, and company owners are constantly asking for new functionalities, thus the product is constantly evolving to include advanced functionality.
 

Every single piece of accounting software designed specifically for small businesses is capable of doing even the most fundamental accounting tasks accurately. The two versions of the program are distinct from one another in terms of both the kind of users they are designed to serve as well as the supplemental capabilities and services they offer. One of the most recent advancements in the field of computers is something known as "the cloud." This is a system in which data records and software are kept on secure servers and can be accessed over the internet. It was only a matter of time until cloud-based accounting software became available, and today Xero makes it possible for businesses of any size to take use of this technology.