Accounting vs. ERP Software


“Is there a difference between an accounting and ERP software?”

Confused between accounting and ERP software

To end the confusion, the answer is YES.

Knowing the difference between the two is very important especially when making buying decisions. Softwares are big investments, choosing the wrong one would most probably cost you twice.

Here’s a scenario:

You are sourcing for an accounting software for your company. You googled ‘accounting software’, and then invited vendors for a product demonstration.

After the demonstrations, you ended up choosing none of the vendors since they couldn’t meet your company’s requirements. You need inventory tracking, customer relationship management, and human resources, which are not available from the accounting software of your vendors.

What you didn’t know is that your were not actually in need of just an accounting software, but an entire business solution, also known as, Enterprise Resource Planning (ERP) software.

Accounting Software

An accounting software takes care of all the financial aspects of the business. These usually include modules such as general ledger, accounts receivable, and accounts payable.

ERP Software

An ERP software, on the other hand, takes care of all aspects of the business. Accounting, customer relationship management, inventory management, and human resources are all included in one business software suite.

Let’s go back to the given scenario. Imagine how big your investment would be and how long would you wait for a Return on Investment if you acquired an accounting software from one of those vendors and then look for separate software for your inventory and customer relationship management. A solution for the scenario is to purchase an ERP software. An example of an ERP software that can accommodate your current need is NetSuite.

In its simplest terms, an accounting software is just a module of an ERP software. When making buying decisions, make sure you have a clear distinction of the two.

Still confused? Talk to a CloudCompass Consultant now at +632 727 2950.

CloudCompass is a cloud consulting company specializing in cloud business solutions. For more information on its solution and other products, you may refer to the following useful links:

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