Accounting Software Versus ERP Solutions

 In the recent years, enterprises are embracing the digitalization and turning from traditional to a more techie approaches, more and more organisations are interested in the concept of Cloud software and ERP solutions. Nowadays, online business accounting solutions are substituting the conventional way of doing accounts for the businesses. Out there, many considerations are put into place to make up to business needs and accounting software and ERP solutions are a must in the list of an organization to contemplate among many technology innovations in the market.

There are certain differences between ERP and accounting software in terms of its capability range. Although, a lot of concepts have mixed up the distinction between accounting software package versus ERP solutions. To put it simple, an accounting software package usually limited to the scope of financial activities like accounts receivable and payable, banking and reporting else ways, ERP as we know is not limited to accounting features built in but can also manage ecommerce, supply chain, CRM and more. An example of ERP software is Netsuite SuiteSuccess ERP.

Accounting Software versus ERP Solution

To get a better feature comparison of using between financial management software lets both see its functionality.

Accounting Software

  • Accounts Payable
  • Accounts Receivable
  • Payroll
  • General Ledger
  • Multi-currency
  • Budgeting

 NetSuite ERP Solution

  • Marketing Automation / Campaign Management
  • Customer Relationship Management (CRM)
  • Accounts Payable
  • Accounts Receivable
  • Payroll
  • General Ledger
  • Multi-currency
  • Financial Planning & Analysis
  • Multi-Company & Consolidation
  • Multi-currency/multi-tax, multi-language
  • Fixed Assets
  • Subscription Billing
  • Revenue Recognition
  • Demand & Supply Planning
  • Inventory Management
  • Work Orders & Assembly
  • WIP & Routing
  • Warehouse Management
  • Project Management
  • Job Costing
  • Resource Management
  • Field Services

Let’s know the pros and cons of using cloud-based accounting and the selection of solutions out there for you to choose. 

Pros and Cons of Cloud Based Accounting Software Package

Pros:

  • Cheap monthly Subscription
  • Self-implementing
  • Easier to use, faster work done
  • Globally competitive in terms of SME, SMB innovations in tech
  • Collaboration, unified and transparency to management

Cons:

  • Focus on small businesses
  • As businesses grow, so do their business model, processes and complexity. Accounting software limited configuration capabilities are unable to deliver the required functionality required by complex businesses
  • Accounting software are geared towards single entity businesses. As a business adds more stores, outlets or other legal entities, each will receive a separate instance of the accounting software
  • Integrated bolt-on solutions are required for any processes outside accounting (e.g. inventory management, CRM, etc)

Leave a Comment