Spotting the difference between accounting and ERP software is essential. Many people fall into the similarities and expect accounting software to work as ERP and vice versa. So, here are some basic differences that make these two systems different from each other. By understanding the differences, it turns out to be effective using the appropriate software for the right job.
Accounting vs. multi system approach
The accounting software is all about accounting and accounts management only. It deals with the things like accounts receivable, payable, inventories, invoices, payroll and other related tasks. You can manage everything efficiently with the help of software and get better account management.
On the other hand, ERP system is a complete package of multiple software and system in one pack. It lets you have the management system for human resource, intangible and tangible assets, financial resources, material resources and related parts. Eventually, you can bag the best and ultimate software pack in ERP that takes care of all your business tasks.
Keeping track vs. getting leads
One of the essential differences between the accounting software and ERP software is of giving results. When you keep the track of all business and account records in the accounting software, it gives you balance sheet and final statement. At the end of month or year, you will get to know about the profit, losses, liabilities and assets.
On the other hand, ERP software helps you in making policies. It helps you with the positive and negative aspects of decisions you have made in the business year. Showing the results of these decisions and giving you potential insights about business it helps you to come up with better business policies.
So, these two are entirely different when it comes to help you with the businesses promotion and improvement.
Bottom line
It is essential to get out of a specific zone of considering ERP and accounting software similar. These two are different in many ways. There is no doubt that you may find a few similarities but it never reflects that software can replace other.
You may find a few features of accounting software in ERP package but it is not the ultimate one. There is always a customization of ERP software that helps you access all the accounting features in ERP accounting package every time. Give importance to both systems and use them wisely in business to get the ultimate results.