Difference between accounting software and ERP software
Nowadays, the use of software to manage company operations is getting common because it provides ease and accuracy in reporting. There is a conflict that arises between understanding of accounting software and ERP software. So before choosing one a person has to understand the major difference between them as well as their functionality.
Generally, accounting software refers to a computerized platform that is used to manage company’s accounts, financial statements, transactions, and balance sheets, etc. through this it is quite easy for an entrepreneur to generate reports and manage taxation calculation and many more. Appropriate software work more effectively than a person and reduce the risk of error or mistakes and helps inappropriate decision making.
ERP program is complete encryption of enterprise resource planning and provides complete operational and management solution to an enterprise. Through ERP platform entrepreneur will be able to maintain a check and track assets, their allocation, manage inventory or stock level, sales volume, production, human resource development and management, customer relationship, reporting, and e-commerce. It provides one pack solution to the whole organization to manage all business activities.
The link between accounting and ERP platforms
Organizations use both accounting and ERP solution as per their requirements and need but here are some features that make them different from each other.
Accounting software is just designed and provides only an accounts management solution to a company or enterprise that include recording of data and generate reports out of that. But an ERP system has all in one solution for an organization it covers the accounts management as well.
Through accounting software, you cannot be able to record inventory or keep a check on the stock level but ERP provides you complete monitoring on production department that includes inventory management, resource allocation, labor or employee management, and complete supply chain management.
In accounting module a company can be able to records daily sales, cash in or outflows and generate reports on a weekly, monthly, quarterly or annual basis but ERP is designed to encrypt that accounts management with the customer lead management as well.
Accounting software does not have sales management and order management system and through this, you will not able to track the customer need but with ERP Software you have complete access over sales and order management. You can track a particular order from its placement to delivery.
ERP is designed as per a particular organization’s need and requirement and completely customized, but accounting software needs the third party for functionality.