What Is The Basic Difference Between ERP Software And Accounting Software?

ERP and accounting programs differ in their functionality and range check my reference. They also have different outputs and sizes. Recently, accounting software was used to refer to ERP. This is misleading to most people. Accounting software has been and will always be an important part of Enterprise resource management software. Companies run on accurate accounting. ERP however is so much more than accounting. Organisations are not limited to accounting. There are many other aspects that an organization has. As they grow in size, more of these aspects will become critical or important, such as SCM and Marketing, Multiple Inventory, SFA and logistics.

Enterprise resource management software handles all aspects of small to large enterprises, accounting included. It allows for information to flow seamlessly from one department into another and generates consolidated outputs that can reflect overall organization status. Enterprise resource management software manages all the activities of an organisation. In manufacturing, it may be used to track suppliers of raw materials and follow up on sales records. Accounting software processes accounts receivables as well as payables to keep track of money flow. Reports are generated that reflect the exact status of an organisation in terms of profit or loss.

Due to the fact that ERP software companies often have their own accounting software or took over smaller accounting companies in order to develop Enterprise resource planning (ERP) software, there has been a lot more confusion. You need to be aware that ERP software can start with purchase, purchase, cash and bank coupons and end at balance sheet which shows the financial situation of the organization for the period.

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