Difference between ERP Software and Accounting Software

There are often misunderstandings about ERP systems and accounting software. Most people may think that ERP is just another name for accounting software, but in reality, ERP systems are completely different software.

ERP can provide functionality and value for all departments within a company, while accounting software alone is only designed to be utilized by finance teams to meet basic financial needs such as accounting, revenue, sales, invoicing and financial reports.

On the other hand, an ERP system is an integrated system that deals with accounting functions together with all other functions in the company.

What is accounting software?

Accounting software is an application program specifically designed to manage the recording of business transactions. This program is used by company accountants so that data regarding transactions can be more easily managed. Some of the data that will be recorded by this program includes data on purchases, sales, salary payments, reports and other data related to company financial reporting.

The accounting software program itself has various features which can be selected according to your needs. Because this software is a paid application, the levels vary depending on how complex the program is in carrying out its functions. The more functions and features offered, the more expensive the price will be. So you should be wise in determining the right software program for your company.

What is ERP software?

An ERP system is software that covers almost all parts of a company, all in one comprehensive and integrated system that makes decisions quickly and accurately. ERP software really helps companies in increasing levels of productivity, transparency, scalability, efficiency and effectiveness.

Why is ERP better than accounting software?

Actually depending on your business needs, in some situations, you may only need an accounting solution to handle basic financial data capture and reporting, but if you need more, then ERP is the only way to do it.

ERP will enable much greater integration of business operations into one system, including aspects such as inventory and warehouse management, customer relationship management, supply chain, etc. All of these aspects are currently impossible to do through accounting software alone.

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