Every business, from SMEs to enterprises of course need systems to accommodate their company or departments needs. As an example shoes manufacturing company will need systems that can control their manufacturing process and inventory management on the warehouses. And also services companies of course need systems that can count costs from every project.
The answers of the solutions of the problems above are accounting software and ERP. What is the difference between accounting and ERP software? Let’s discuss about the specification, function and the systems. But first of all, let's see the definition of both softwares.
Accounting Software
Can be interpreted as system to help users run accounting cycle on their company. Long accounting process from sales and purchase entries, assets depreciation, until creating financial statements such as profit and loss, cash flow and balance sheet that are very complicated, will be shortened with accounting software. And of course, users or your accountant will see automatic and accurate financial statements easier and faster.
Because this is accounting software, so the main focus is to present financial statements. Even though there is a lot of accounting software that has additional features such as inventory management, assets management and manufacturing, also Point of Sales which still refers to accounting records. Usually, accounting software is a part of ERP.
ERP Software
While ERP software is formed from several systems which helping every departments on the company to run operational process. The systems on every departments are integrated on one ERP software. Like we said earlier, accounting software is part of ERP, and usually used by finance department users.
ERP or Enterprise Resource Planning software is more emphasis on resources analysis, planning, transaction management, finance and accounting, manufacture management and inventory management until the delivery. All transaction and business process run automatically and integrated. Every report including financial statements and other division reports can found in one place. This reports is used by top management to make decisions and company policies.
Difference Between ERP and Accounting Software
Here is the difference between ERP and accounting software:
1. The Needs
Choosing between accounting software and ERP is same as good for company improvement. Memilih akan menggunakan software Akuntansi atau ERP sama sama baik untuk kemajuan perusahaan. However, options should be adapted with company needs. As an example,if your company needs only financial entries, choose accounting software.
If your company needs a solution from the operational system until the financial process that is integrated, choose ERP software.
2. The Users
The second difference is the users who use the systems. Accounting software usually only used by finance or accounting department. So the users only accountants, billing admin, ledger officer, cashier and treasurer.
While ERP software can be used by all departments or divisions in the company. Whether its from finance division, marketing and sales division untuk human resources division, will be integrated each other in the one ERP software.
3. The Investment
Related to investment that must be issued, ERP software that can provide complete solutions for entire departments will be greater then accounting software than only for one division only.
Therefore, the company need to ensure first the needs and users of the software that will be chosen. And don't forget to prepare the investment after that.
And if your company decided to use integrated systems for all departments including operational, human and finance management, you can use ERP Software. Usually ERP vendors will ask you to issue the investment for all systems directly. Which is it will be much.
But we have a great news for you! If you decided to use ERP software but only for one division at first, and then will be implement to another division while the company grows, you can use Odoo ERP. Of course with this way, your investment will be smaller based on your needs.
Contact us for more info about Odoo ERP.
