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Difference between ERP and Accounting Software

Difference between ERP and Accounting software

Difference between ERP and Accounting software

While searching on Google Adwords about the keywords and related keywords about “ERP” I saw many related keywords which people are searching for are  “Accounting software” “Business software” “Account manager.” and after discussing and meeting with variety of clients I discovered that these two terminologies “ERP” and “Accounting Software” are used as synonyms. Therefore we thought to cover this special blog post for our viewers to understand Difference between ERP and Accounting Software.

Read our Article  on 5 Basic Feature of ERP Software

In fact there is a major difference between these software, from functionality point of view and from output they offer to your business. Even today there are many businesses who sell accounting software in the name of ERP and small businesses are misleaded by the ERP title.

Many of our clients even pronounce this statement –

“Our Accounts department is use ERP software, Implemented by X Vendor”

One should note that ERP is not implemented for one single department, else it will be considered as a Simple Software for which we covered a blog post on Difference between ERP and Simple software.

One of the most important task of an Enterprise Resource Planning software is to perform more than Accounting functionality. As businesses have different aspects and department which work together to achieve organizational goals therefore ERP covers and handle every department such as Sales, Purchase department, Warehouse Logistics, Manufacturing, and Accounting and Financial management.

It doesn’t matter your business is Small size or Big if you have implemented an ERP software it should cover every department and also integrates well with 3rd party software for seamless working. The final outcome is that no manual work by any department.

Read our Article  on How to Evaluate ERP software for your Business

The major difference between in an ERP software and Accounting software is that ERP covers every single aspects of your business for example – Manufacturing orders till financial management and even go beyond that by handling Human Resource management, Point of sales in case require. Where as An Accounting ERP will only cover few aspects of Sales, Purchase and billing or more over providing the financial status of the business.

Read our Article  on Main Purpose of ERP Software

With the growth of variety of software nowadays there is lot of confusion between an Accounting software and ERP software, although we shared the differences between both the software in terms of functionality and feature. Also one should remember that Accounting software can be implemented quickly as these software are specially crafted and serve particular industry.

Read our Article  on How Long does it take to implement ERP solutions

Whereas implementation of ERP software take time as there are different phases, workflows, forms, integration which needs to be taken care of, Further creation of different users as per the roles, rights and departments are other duties that needs to be perform during ERP implementation.

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