How Does a ERP software and a Accounting Software Differs
Accounting software generally caters to areas including financial reporting, accounts receivable and payable, records of revenue, and cost structure. An ERP software like SAP Business One offers a wider range of modules that include supply chain management, warehouse management, inventory planning, production, Human Resources, etc. It has been observed that many people use the words accounting software and ERP software interchangeably.
The business environment is getting hyper-competitive, the customer is looking for ERP solutions that can be customized and can keep pace with the growth of the company because as the company grows traditional accounting software like Quick book, Sage, etc. are not able to match the needs and get bogged down thereby slowing down the whole processes of the host company. New-age ERP software like the SAP Business One offers a much better proposition to small and medium companies.
So how do they differ?
Let’s understand in a bit of detail.
- As we have discussed already ERP software has many more features and modules that cater to the wide range of activities of an organization like inventory management, production planning, Sales Reporting, Warehouse, and Quality Management, Human Resources, etc. whereas traditional accounting software can only offer solutions for the accounting and finance department and not for any other department. This can be a negative factor for many companies.
- Accounting software is not able to give solutions for industry-specific needs, whereas ERP software offers tools for inventory management, production planning, etc., and alsobusiness analytics tools that help the company take informed decisions.
- Many accounting software is not Generally Accepted Accounting Principles (GAAP) compliant and therefore it becomes difficult for small and medium enterprises, you should always enquire with the vendor how the ERP software is compliant with the accounting and taxation laws of the country.
- ERP software provides a whole solution for the company to look at the data from different departments, it eliminates the need to have different tools for different departments and integrates the process and information across different departments. Using SAP Business One on Cloud provides a cost-effective solution for SME companies to access data anytime anywhere.
- Accounting Software is seriously limited in offering real-time data whereas an ERP solution like SAP Business One offers real-time data across different departments that is available on the cloud so that management can take decisions quickly and take on the competition in a more aggressive manner.
Conclusion:
Enterprise Resource Planning (ERP) software and accounting software differs in their scope and funtionality. ERP software provides functionality whearas accounting software handles basic financial requirements like payable and recievable.
ERP helps in customer relationship management and helps in eliminating manual data entry errors. Softcor Solution; being a well-known SAP Business One Partner in Pune, we ensure to help you throughout the process.