Accounting Software and ERP: Oranges to Apples
Is the fine line between accounting software and enterprise resource planning appearing to be blurred? From QuickBooks to fully-fledged ERP System, process makers are sure to get confused while making decisions. Although the terminology is often used synonymously, the comparison between ERP and accounting software is actually the same as between oranges and apples!
ERP has got too much to offer when compared to accounting software. Think of accounting software as the subset of ERP software. What’s more? Read on!
Accounting software is the way to go to perform traditional functions while focusing on numbers and statistics. The accounting software’s functions include recording and processing accounts payable, handling the accounts receivable, generating payrolls and maintaining the general ledger. The handling of multiple software applications is dependent on multiple databases – thus dealing with increased chances of input errors and redundancy.
Enterprise Resource Planning (ERP)
However, ERP System makes the whole process all the more simple and straight! Get to enjoy all the benefits of accounting software along with many others with ERP. ERP is a complete system that apart from tracking the business’ finances also helps you monitor a range of activities – human resources, working hours, key performance, product life cycles, and customer relations. Easily manage data in spreadsheet format, perform complex calculations, and generate comprehensive reports on the go with enterprise resource planning solutions. Not only this, companies and organizations could also choose to package additional functionalities like multi-currency and credit card processing to boost their ERP.
Further, the entities related to ERP system could be set to visible across the whole enterprise – amid manufacturing processes, quality assurance, inventory, sales, and finance department, unlike traditional accounting software. This means no more hiding around.
The data in ERP system is collected in a single database and can be accessed simultaneously from various departments. This then helps in quick processing and real-time tracking.
- ERP System is a lot bigger concept than accounting software – as mentioned, ERP helps you perform every other task that the accounting software can do. In addition, you get to do a lot more with the former when compared to the latter.
- Accounting software helps the organizations in dealing and managing the overall financial transactions. Web-based ERP software, on the other hand, allows every department of the organization to manage the deals and transactions on the go.
- If the financial statuses of more than one department of an organization are to be brought under scrutiny, a lot of calculations are required. Database of each of the concerned department is to be studied. This, on the other hand, is fairly easy with ERP Software where you can easily synchronize the data from all the departments in one place. Thus, ruling out the possibilities of data duplication and any errors that might have crept into.
- Most importantly, an ERP system is highly scalable – you can customize and evolve your enterprise resource planning solution as per the technical requirements of your organization. However, accounting software comes with its own set of limitations in terms of functionalities and features – making it impossible to expand or augment with more beneficial features.
While the winner is clearer, ERP software is the way to go. ERP promises organizations with an enhanced ability to deal with collected data, manage inventory and reduce overheads. On the other hand, accounting software with its limited set of functionalities is becoming less relevant in the market. ERP solution helps you by presenting accurate info enabling you to make well-informed decisions. Accounting software helps, but ERP Software blesses you with more outputs.
Still in dilemma? Synergix Technologies your Singapore ERP company can assist you with the oranges to apple comparison between ERP and accounting software. Contact us to learn more!