What is ERP System?
Enterprise Resource Planning (ERP) software is an application that automates major business processes, usually in real-time and moderated by software & technology. It combines financial management, supply chain, CRM, and in some cases, industry-specific solutions into one broad range by helping businesses earn full visibility and control, scale & able to compete in the competitive domain.
Nway Construction ERP Software provides a full-fledged ERP system that caters to all your business needs & Streamlines your key processes, gains greater insight into your business, and makes decisions based on real-time information.
What is Accounting Software?
Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance & timesheets. It can track financial transactions to record profile or loss and improve business finance and overall cash flow.
The major difference between an ERP system and accounting software are below:
- Accounting Software provides limited real-time data whereas ERP handles the entire function of an organization
ERP software consolidates every financial information in one database and accounting software handles individual business accounts. ERP systems eliminate the need for different tools to manage the requirements of different departments by providing combined solutions for a wide range of business processes. Moreover, company-wide data is available in the cloud for anywhere, anytime access to real-time information using a mobile device. ERP systems connect each part of the business which makes every decision to be based on real-time intelligence. On the other hand, the accounting system doesn’t come up with this kind of functionality.
- Accounting software is nothing but a subtype of ERP Software
An accounting system is a subtype of ERP. Accounting software specifically deals with all accounting transactions and the modules basically used by the accounting software are General Ledger, Chart of Accounts, Trial Balance, Balance Sheet, Accounts Receivable, Accounts Payable, Point of Sale. On the other hand, an ERP is a fully integrated solution deals with all of the functions offered by accounting software integrates them with non-financial tools. It specifically includes inventory management, supply chain management, customer relationship & warehouse management.
- Accounting software has a limited ability to meet industry-specific needs as compared to ERP
The accounting system is adopted by the industry which is looking only for Financial management. However, the ERP system gives provisions for all the departments of an organization to include their specific business processes to be customized with an ERP software.
- Accounting software is designed to manage only one specific area of business
Accounting software is designed to manage only one specific area of business. While the ERP system is a fully integrated software deals with the functions or modules of accounting software along with a whole host of other functions within a business. It includes inventory, supply chain management, customer relationship management, online selling & buying & warehouse management. It doesn’t work for a specific area instead covers all your business areas.
- ERP Provide One Stop Solution for your Domain
An ERP system can provide functionality & value to your entire domain whereas an accounting solution is just designed to be leveraged to cover essential financial requirements by your finance team like Accounts payable, Accounts receivable, Revenue, Sales & Invoicing, Financial reporting.