Accounting is the lifeblood of a company that helps an organization to achieve its goals and objectives by assembling, organizing and communicating information about its daily activities. However, as the world is becoming unrelenting, organization and people must be prepared for the continuous transformation, and new capabilities will be required for success. Business owners have started to realize managing finances in a solely accounting software is no longer support the market that is fast-changing.

If you have been thinking of integrating all your complicated business process into one, an Enterprise Resource Planning (ERP) system is the answer. As the options of financial software grow exponentially, it has blurred the distinction between accounting software and ERP solution. Although there are a few similarities shared between an ERP system and accounting systems, technically, they are not the same.


Knowing the difference between these two is important as if you’re unaware of the distinctions between these two, you may be matching two different product categories but not the products themselves when it comes to buying decisions.

Think of how are people collecting LEGO, accounting software is just a piece of the LEGO collection. However, an ERP solution is a set of LEGOS with pieces that can be fit together when needed or left out when unnecessary.

Here’s a quick fix of the difference between accounting software and an ERP solution.

The most glaring difference between accounting software and ERP is the variety of tasks. Accounting software has been used to-as its name suggests, focus on managing a company’s financial, or how money moves: the general ledger, bills, account receivable and payable. Depending on the versatility of the program, it also possesses the capability to track cash flow and manage bills and invoices, payroll, taxes, purchase and sales orders. In simple words, it helps to evaluate and give insights about the financial health of a business.

On the other hand, ERP Solution integrates all the modules of an accounting program but bring it to a greater height. Today many businesses have accounting software but the lack of integration of application would increase the complexities of the process of financial information reconciliation.

Flexibility of ERP VS accounting software

The way in which ERP achieve flexibility with a variety of modules and options. These can be included individually, each one supporting different specific functions, but with the advantage that all the information is shared and managed across all the departments under just one single database.

In addition to accounting, they can be used for budgeting and order management, purchase and shipment management, purchase orders, sending and receiving invoices, financial planning, purchases ad suppliers’ management and so on.

With the greater accessibility of technology in today’s world, in some way it has lowered the barriers for small businesses to harness digital technologies. An ERP software solution is no longer exclusively reserved for big giant, almost any small-to-medium enterprises (SMEs) can benefit from these tools thanks to their flexibility and scalability. Being this another advantage, it can, anytime, be changed and shifted to the demand of each of the company’s processes or market demands.

Adaptability of an ERP VS accounting software

Competing in this ever-evolving world, agility is a critical component. The biggest benefit of an ERP is its agility and scalability that it can provide for a business. It solves one of the most common issues found in businesses: using disparate systems or software for each department or activity.

Technology is intended to make things easier. For businesses that managing in different databases would come the potential of increased complexities and inaccuracies. When a business not able to gather the latest data in the first place, it runs a risk of falling behind the competitors especially in this battlefield that is getting fiercer than ever.

When inventory control comes to mind, visibility is the main interest of any company. Having the right amount of product at the right time is significant for businesses to increase inventory turnover.

Running a business in multiple systems at the same time would burn a hole in your pocket in the long term. It will cost business for a fortune to customize, integrate and keep those systems up to date with the latest version.

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Another issue that medium-sized companies often encounter is the accounting management process.

Take a second to think how long it takes to introduce invoices and order data into different systems? Again, unlike many traditional accounting software, an ERP solution allows all financial information can be assessed under a single database, and what’s the best part? A good configuration can cut accounting closing times to half, according to Jonathan Chee Sze Chiang, a patent owner.

The perfect time to get an ERP System lies in recognising the red flags of your current business status to make the switch.  The technology is so advance in the age of digital, switching from accounting software to an ERP has become so much easier. When businesses start it is quite likely a very simple tool fulfils their needs; but as time goes by, customer demands are becoming more unpredictable and they expect everything in real-time, a standalone system will no longer able to support to the market needs.

In GERP, we understand that every business is not easy – built-in over time in pursuit making their business stand out from the crowd. The volatile strong headwinds and emergence of new threats have created conflicts with industrial industries; in particular, lack of talents and rising business costs have been a bugbear for SMEs. When you’re a part of GERP, you bring new purpose, meaning, and relevance in your business by embedding right at the core of what you do. We are here to help make a real difference in your business. Together.

There is no better time than now to acquire a free ERP system.

Set up a consultation with us today.