What Is The Difference Between Accounting Software and ERP?
The fact that there is a wide variety of accounting software available in the market makes it difficult for entrepreneurs to differentiate between software that supports accounting operations and Enterprise Resource Planning (ERP). Additionally, the confusion among business owners and company executives becomes profound when they realise that there are third-party modules capable of performing accounting functions that are not necessarily ERP software.
As such, there is a distinct difference between ERP and accounting software and here is some insight on how to separate the two.
Sales Management and Order Processing
Accounting Software – Sales Management and Order Processing options are some of the missing provisions for those who depend on accounting software.
ERP – Part of the core provisions for ERPs includes Sales Management and Order Processing. ERP sales order management incorporates such as promotional pricing, management of complex orders, kitting and inventory allocation apart from attending to customer orders and shipping requirements.
Accounting Software – It is impossible to manage leads using accounting software because this solution initiates interactions with existing customers only or those who make purchases through a purchase invoice or sales invoice.
ERP – The ability to track leads is made possible with ERPs because the system establishes contact with individuals even before they become customers. ERPs have a dedicated CRM module that allows users to identify campaigns that generate leads, write and track emails as well as access up-to-date lead contacts for effective management.
Accounting Software – Acquiring necessary software for management of production processes is a critical requirement for those who operate production factories. This is a function that accounting software does not constitute. As such, the absence of manufacturing management capabilities in accounting software poses limitations to efficiently controlling operations.
ERP – Monitoring the floor space in a factory will help workers gather details regarding machine breakdowns, customer orders, deliveries, stock levels, availability of resources, changes in requisitions among other things. ERP software gives you visibility to all factory operations making it a resourceful manufacturing management tool.
If you would like to learn more about how to differentiate between accounting software and ERP, contact us today! We can also guide you in ensuring your business invests in the right business software that will support your business operations and goals.
SAP Business One is an affordable Enterprise Resource Planning (ERP) software designed for small to midsize businesses. As a business management solution, SAP B1 streamlines business processes, provides real-time information, and help boost overall business performance. The solution covers finance, sales, customer relationship, purchasing, procurement, inventory and manufacturing in one centralised system, enabling accurate and precise information retrieval that assist in reporting, forecasting and analysis.