Accounting Software Vs ERP Software: What’s The Difference?

Accounting software vs ERP software

To compete in the global market, your business is heavily reliant upon its day-to-day operational software. However, many businesses – of all sizes – are still relying on accounting software to manage their processes and operations; missing a vital piece of the puzzle.

Whether you’re a small business owner, head up a division or manage a subsidiary of a larger corporation – or even if you’re an IT decision maker of either – you share a common need to improve business processes, access business information in real-time, and gain insights through flexible reporting and analytics.

While accounting software can help you control the day-to-day financial running of your business, it can’t provide you with the integrated insight you need to achieve these goals.  To do your best, you need a fully integrated and overarching solution that can help you control your supply chain, make fast and accurate decisions, and scale quickly and effectively.

This is where an Enterprise Resource Planning (ERP) solution such as SAP Business One can help. Ideally suited to small, growing businesses, SAP Business One is a complete package for businesses that need to improve cash flow management, grow revenue, improve customer satisfaction and retention, and increase productivity and efficiency.

At Leverage Technologies, we specialise in helping manufacturing businesses implement ERP solutions – particularly SAP Business One.

Based on our experience, here is a summary of the key differences between accounting software vs ERP software.

 

#1. Scope

While accounting software focuses purely on the financial aspects of your business, ERP solutions have a much broader scope.

With an accounting solution such as MYOB, Quickbooks or Xero, for instance, you can keep track of cash flow, manage account receivables and payables, and generate detailed financial reports.

Typically, an ERP solution goes far beyond accounting, enabling you to:

With a solution such as SAP Business One, however, you get an overarching view of your organisation – helping you track supply and delivery, optimise your processes, and much more.

SAP Business One gives you a single and centralised way to process analytics and transactions, handle business processes in a smarter way, manage your accounts and financials, manage sales and customers, streamline your purchasing and operations management, and monitor inventory and distribution.

You can also create ad-hoc interactive reports, and access customisable dashboards and analysis – for faster and more accurate decision making.

“While there are some fantastic accounting solutions on the market, they are certainly narrow in their focus when compared with ERP solutions such as SAP Business One,” says Warren Roberts, Leverage Technologies’ Consultancy Director.

“While many people think of ERP as managing their manufacturing and supply chains, it’s actually far more than this – enabling organisations to manage their accounts, finances, job costing and more,” he adds.

 

#2. Overarching view

One of the main differences between accounting software and an ERP solution is the nature of the insights they can offer.

While many accounting software solutions can be integrated into broader ERP solutions, they don’t – by themselves – offer cross-departmental insights. And if your business is operating in a silo fashion – where the disparate parts aren’t connected – you’re not running as efficiently as you could.

By comparison, an ERP solution gives you an overarching view of your business – integrating all of your data to provide you with a single, centralised source of information. This means you can save time, reduce manual workload, and streamline the reporting process.

When evaluating the effectiveness of your accounting software – and if it’s falling short – ask yourself these questions:

  • Does your accounting solution span banking, CRM, sales opportunities, financial accounting, inventory, production and MRP, purchasing, accounts payable and service management through a single front end?
  • Does it allow you to streamline applications, analytics, planning and analysis on one platform that permits your business to operate in real-time?
  • Does it give you the sense of having an extra pair of eyes and ears in the most competitive global environment ever, with a complete and up-to-the-minute view of your business?

 

#3. Anytime, anywhere insight

Today, your people expect to be able to work from anywhere, at any time. They expect to get the insights they need at their fingertips – regardless of where they are, or which device they are using.

While many modern accounting solutions are cloud-based – and can, therefore, be accessed remotely – the insights they offer are specific only to the financial operation of the business. For many mid-size businesses, this means data is often compared and compiled manually, which can mean a high likelihood of error.

With SAP Business One, you can readily connect to other applications in your business network, and across your enterprise, to synchronise data in real time – ensuring streamlined and consolidated insight. SAP Business One also incorporates leading business intelligence, so you can compelling reports, and very accurately track revenues, costs and cash flow with ease.

“Thanks to the cloud-based nature of SAP Business One, you can access integrated insights from across your entire business – from anywhere and on any device. This has a major impact when it comes to automating key business processes and streamlining for maximum operational efficiency,” says Roberts.

 

How Leverage Technologies can help

Leverage Technologies has extensive experience in implementing ERP solutions for a wide range of businesses. We’ve proven, time and again, that we can quickly and efficiently implement low-risk, best-practice ERP solutions, and that we can deliver a lower cost of ownership for our clients.

Plus, when you choose to work with Leverage Technologies, you gain access to a team with extensive, shop-floor experience, and we can also offer manufacturing guidance to help you enhance your overall operational efficiency.

To find out more about SAP Business One or to speak to our consultants call us on 1300 045 046 or email info@leveragetech.com.au.

Share