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ERP vs Accounting Software – What’s the difference?

Similarly, to taking classes, accounting software is only one module of a whole course. An ERP system, however, is the collection of modules to form one complete ‘course’ or management software. These modules include accounting, sales, inventory, production management, analytics, customer management, and more.

‘Accounting software provides a good snapshot of a company’s financial health today but lacks the ability to anticipate tomorrow’ (Faraz, 2018).

So, what are the other main differences between an accounting software and ERP system?

User Requirements

If a company is happy with only the finance division having access for the likes of automation in accounting, then a stand-alone accounting software would suffice. However, if a company requires a connection between divisions within the business’ processes and would like to automate every aspect of the company’s operational activity, an ERP system is the best choice. With ERP, authorizations are defined per user. Each user can have the same permissions throughout the system or can have different permissions per module

Business Growth Capabilities

With accounting software, a business must be small to maintain an efficient amount of control. Whereas an ERP system grows with a business from start-up to midsized enterprises. Therefore, it brings comfort to the business owner that while the business expands, so does the support with the right ERP solution.

Lowers IT Cost

IT management and integration across multiple systems are decreased due to a single, streamlined solution with an ERP system. Therefore, it reduces the IT cost.

Accurate Reporting

Creating reports through an integrated system digitizes the process, reduces the use of paper and saves time overall. It provides accurate monitoring of a business’ goals and objectives to gain insights on whether these performances are being met to the company’s standard.


From these points, we can see that an ERP system is a perfect tool for growing businesses who have a need for multiple users across different divisions, less cost in IT services, a system that can grow with their business and data that gives accurate results on the business performance.  In turn, this investment will increase profits and your business efficiency overall due to increased automation and the reduction in man-hours.

The award-winning SAP Business One ERP is an example of an extensively functional business solution, which is trusted by over 60,000 companies in 150 countries. It manages all aspects of your business and can be deployed on-premise or in the cloud in as little as 2-8 weeks. In addition to its quick implementation process, SAP Business One is compliant with the laws and regulations of 40 different countries, available in 27 languages and compatible with a range of currencies.

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