There are many Business Management Software applications across the globe and while most of them have gone through a lot of changes and technological upgrades in the recent years, the demands of the industry still goes ever evolving. That’s where ERP software solutions came into picture to cater all the business needs of the organization in the best manner possible. Still people often gets confused between accounting software and ERP software and while the difference between both is quite big, we need to take a thorough look at both to get a better clarity on the same.

Difference between ERP and Accounting software

While ERP (Enterprise Resource Planning) takes care of a number of business functional areas like Human Resources, Sales and Logistics, Finance and accounting, manufacturing, Customer Relationship management, Payroll, etc, basic accounting software takes care of the usual finance and accounting department only.

As we know that Accounting is like a subsidiary of an ERP system and it generally deals with basic tasks related to accounts payable and receivable, balance sheet and payroll management. The software usually comprises of Sales Order, Purchase Order, Billing and Time sheet and general ledger entries. Still the basic difference between ERP and accounting software cannot be ascertained by everyone who hasn’t used them yet. Moreover, with the Industries worldwide are marching ahead with ever changing technological advancements, the ERP system is replacing the basic accounting systems.

Reason for Businesses taking ERP over Accounting software

Most of the Business entities around the globe chose ERP over accounting software just because accounting software only takes care of individual business accounts while the ERP software takes care of entire business functions along with its related data. ERP systems not only integrate all of the business activities but also smoothens the information flow across all of them to enable the management to take better decisions in terms of overall organizational growth. This is where accounting software usually remains incompetent when it comes to deal against ERP software as it relies more on the available statistics and numbers in regards to various departments and their concerned reports.

Businesses usually opt for ERP systems to meet the ever changing demands of their clients and the main reason for the same is the flexible nature of the ERP systems. While accounting software can’t be altered or customized in order to accommodate any newer function or feature as per the client’s requirement, ERP system offers the scope for the same to a great extent.

Conclusion

As we understand by now that Technology is witnessing new advancements with every day passing by, it’s very unlikely to say that accounting software would be staying around for long. The Business World is growing every minute and its demands for a better system in order to manage and monitor all of its core functionalities is also growing alongside.ERP system fully satisfies all those growing needs and hence it has become the more preferred choice for the organizations around the world and while ERP

Author's Bio: 

Accelon is a leading provider of SAP B1 ERP software solutions & services since 2006. Accelon was awarded SAP Business One HANA Partner in 2014.