In the past few years, many new terms, including business and software ones, appear in everyday life because the newest IT technologies have brought many changes and new capabilities to business software solutions. As a result, some of the terms are used incorrectly or interchangeably. The same situation is with “ERP accounting software.” Is not it?
Accounting and enterprise resource planning software are not the same.
However, some software providers unite these two concepts and offer customers their products as "ERP accounting software" or "ERP accounting software system." To better understand the difference between accounting software and ERP software, it is enough to look at the range of functionalities traditionally offered by each of them.
Accounting software deals with accounting transactions such as accounts payable, accounts receivable, general ledger, payroll, and trial balances. Some additional modules such as invoicing, billing, purchase order, sales order, electronic payment, and others can also be included in the accounting software system.
ERP software deals with resources and is a resource management system. The functionality of the ERP software system includes tracking and managing assets (tangible and intangible), equipment, inventory (parts, materials, goods), human resources, and financial resources.
#1. The main objective of the enterprise resource planning software is to facilitate the day-to-day management of the company's business operations by uniting data about all business aspects received from multiple channels into a seamless and comprehensive information system.
#2. Powerful, comprehensive computerized enterprise resource planning system encompasses all main business processes such as accounting, purchasing, inventory, shipping, suppliers, customers, human resources, e-commerce, payments, mobile, and others and helps to organize, manage, and control them most effectively.
#3. In addition to the standard accounting reports such as Profit and Loss, Trial Balance, and Balance Sheet, ERP accounting software provides strong and exhaustive reporting of all aspects of business activities, including customer engagement, closed deals, inventory levels, orders status, profitability, and many others.
#4. ERP accounting module included in the enterprise resource planning software system gives a good snapshot of the company’s current financial health. Data-driven forecasting allows organizations to predict the supply and demand for products and services. As a result, organizations have the ability to make the right short-term business decisions as well as create long-term business plans.
#5. The accurate processing and analysis of business data сollected about all activities allow detection of deficiencies. Detected deficiencies of the business activities and analysis of their reasons and results help managers to identify the strategical ways of process perfection, productivity improvement, competitive advantage, and company growth.
#6. Powerful and flexible export functionality, ensuring that all business data, including financial reports, can be easily exported in a variety of formats to collaborate with business partners, vendors, investors, auditors, revenue, and other government agencies.
EZIBELINE LLC