In the growing competitive market, it is very important to understand the difference between Accounting Software and ERP Software. Let’s have a detailed look in to the range of functionalities traditionally offered by each of them.
As the name suggests, Accounting Software, deals with accounting transactions like Accounts Receivable (AR) and Accounts Payable (AP), General Ledgers (GL), PDC management (Post Dated Cheque Management), Trial Balance (TB), Profit & Loss and Balance Sheet.
To understand major differences between ERP System and Accounting Software, one needs to know that Accounting Software deals with Sale, Purchase, Cash and Bank vouchers and finishes at Balance Sheet explaining the financial status of the organization with in a given time period. Whereas ERP Software (Enterprise Resource Planning) is an integrated Resource Management System Tracking Tangible and Intangible Assets, Materials, Human Resources, and Financial Resources.
ERP software provides a platform to communicate between various Business Processes such as Inventory, Purchase, Sales, Warehouse & Logistics, and Operations like Job Costing, Manufacturing, Contracting and Services along with the Finance, which gives a holistic view of the business (single version of the truth). In other words, those business who require 360 degree view of all the operations across all of their sites/locations whilst managing finance, budgeting, planning, supply chain, Inventory and IT etc. are to name but a few.
The main advantages of ERP System over any Accounting Software is the consolidated view of an organization having multiple locations (branches/business units/manufacturing facilities/warehouse/franchises etc.) with single or multiple line of business.
ERP system goes beyond simple Accounting system and they even predict future losses or profits, changing market trends, decision making based on facts, give multiple dimensions/indicators to increase profit margins, lowering cost of production, improving quality of finished product, inventory and usage trends etc., also can provide meaningful information to various teams in an organization from top to bottom.
Hence, the main difference between ERP software and Accounting Software is that ERP is a tool which does not simply explains how business is running but it can also suggest how to run it better for earning higher profits.
So, let us conclude: – ERP Solution can have all the features of an Accounting Software and more where an Accounting Software cannot be as elaborated as an ERP Solution. In most of the cases, an Accounting Software is being benefited by few people/departments but with integrated ERP Software Solution an entire organization is benefited by giving better overall control to the management.
Few signs your organization requires an ERP Solution:-
1) Many Software Solutions are being used currently to manage your business.
- How many hours do your employees spend manually entering duplicate data?
- How much time and money is your company losing to these inefficient, redundant “solutions?”
2) Data Silos: Information is not easily accessible
- Can you easily find important business data or even basic metrics?
- Do different departments have access to the same, up to the minute information?
3) Struggling IT/Finance Departments
- Is your IT department flabbergasted trying to customize, integrate, manage, and maintain multiple systems?
4) Weak Business Processes
- Are business processes lacking consistency or efficiency?
- Are you following best practices regularly?
- Are you struggling with stock-outs or too much excess inventory?
- Is your accounting department manually entering invoices and orders into various systems?
5) Growth: Is there potential for rapid growth in your industry?
ERP means Scalability and if you are facing any of the above issues, then you should consider implementing an ERP Software Solution for your business.
Thinking of upgrading your Current System/planning to implement a new ERP Software, BrainSphereIT is the Top ERP Software Solution providers in Dubai, UAE and Middle East, having 500+ satisfied clients. Contact BrainSphere IT Solutions today for a meeting to discuss your requirements/pain points.