As much as we probably hate to admit it, money makes the world go round. Because of this, each business’s accounting team is essential. Once called book keepers, we now live in a fast-paced, digital economy; your accounting team should have access to high-tech tools and software in order to ensure the company’s financial health.
When I was a child, my mother worked for a large-scale corporation as part of their accounting team. I remember her staring at her computer screen, printing out spreadsheets after hours of data input, and, of course, the clicking of the keys from the enormous calculator with the roll of paper on the back to print out your totals. She never complained about her job, but to me, it seemed really tedious. Thirty years later, software can automate a number of the daily accounting tasks. There’s less risk of human error, and your team now has more efficient, real-time data to analyze and consider. Much of this can be accomplished thanks to accounting software within a
So what’s the difference between an ERP system and accounting software?
A simple answer is that an
This is to say that while accounting software can give you a financial look at the company at a glance, it cannot help you predict for tomorrow. ERP systems, however, can make predictions thanks to their data-driven forecasting.
It’s important to remember that there are benefits to accounting software as it handles various financial needs. In addition to those mentioned above, accounting software allows for revenue tracking and financial reporting, payroll and timesheets, purchase orders and expenses, and electronic payments. It does all of this while still eliminating manual data input, simplifying payroll and tax filing requirements, improving data accuracy and access, and reducing staff costs.
The bottom line is that accounting software offers a great deal to your business by streamlining and automating processes.
There is some crossover when it comes to the two tools, but an
The ERP tool can provide accounting functionality while offering much more in-depth reporting and control. This is because the ERP provides financial data as well as supply chain information, orders, material planning, manufacturing and warehouse management, among other things like time & attendance, product lifecycles, and customer relations. An integrated ERP is able to show you not just where you are, but where you could be.
Most businesses function at a higher level when they operate with a complete software solution; therefore, ERP tends to overtake the accounting software market. Acknowledging the differences in the two tools is critical in finding what will help your company find success. What is it that you really need? Is it something to help manage your business or just a tool to keep track of your finances?
If you think that
Is it customizable?
Can it easily integrate with other applications?
Will it support the company both today and in the future?
How and when will it be deployed?
Are there hybrid options?
Consider all of your needs before looking in to all of your options. Finding and implementing an ERP is a time-consuming task, but it is worth it in every way. The