Erp Comparison to the Accounting Software
The last few years have brought a lot of changes to business management software. For a long time, companies and organization have been using accounting software. However, the mantle is swiftly shifting to the enterprise resource software –ERP software.
As a matter of fact, many people are confusing the two terms and often use them interchangeably. Although it is not a crime to do such a thing, it is wise to deduce erp comparison to the accounting software. Understanding the difference can help you a lot.
To understand the difference between erp software and accounting software, we shall categorize our discussions into various aspects, such as follows:
Functionality
Just as its name suggests, the accounting software deals with all the accounting processes such as accounts receivables, payrolls, trial balances, and accounts payable. Popular modules associated with accounting software are a purchase order, sales order, billing, electronic payment, expense, timesheet, and general ledger.
Although there are a couple of crossover with the functionality of erp, the two programs are different. Erp software is a resource management system that tracks materials, tangible and intangible assets, financial resources, and human resources.
Erp software deals with some functionalities that are not covered by the accounting software, which often considers intangibles such as product life cycles, good working hours, customer relations, and performance units.
Accounting software is a subset of erp software
For instance, the Microsoft Dynamics GP modules. The packages deal with financial services like financial planning, management, and budgeting. These services could be perceived as accounting software a few years ago, but now other interfaces contain the same features.
Business processes such as reporting and analysis, project and supply chain management, IT management, human resource management and what have you are services can be handled by the Microsoft Dynamics GP software.
Well, all these are nothing but semantics. For sure, the erp software and the accounting software may be two different software, but it does not matter in today’s world. This is because, when you look at the accounting software, it is a free package that has consistently been contracting.
In the past few years, we have seen many accounting software resellers quitting the business or be bought by larger organizations. Furthermore, with numerous erp mediums providing the same accounting functionality with growth potential, why would you opt for a traditionally accounting software?
The reason the erp software and the accounting software have come to mean almost the same thing in the market today is that the accounting software is beginning to fade away. Every single day, new and larger software that are reliable are replacing the software.
As the industry shifts from this old accounting software, it is more likely that the erp software may become the next big thing and it is starting to find a comfortable place in the market.
Also, the two software are less likely to exist together in the market either today or the future, but the erp is less liable to cause confusion.
justin 