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How does ERP Software differ from Accounting Software?

Jun 16, 2020

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Accounting was one of the first business processes to undergo mass-scale digitalization around the world, with accounting software slowly replacing manual accounting and bookkeeping across the globe as the digital revolution began and the results of IT became felt at all levels of industry. Accounting software giants such as Tally or QuickBooks became synonymous with businesses across industries, sizes and locations, as more and more functionalities and features kept being invented and added to the digital accounting process.

ERP (Enterprise Resource Planning) software on the other hand, is a relatively newer development in the IT world, and it encompasses a much broader scope of action than accounting software. Though it is a newer model of digital business processing, it is also a much faster growing one, projected to reach a global worth of USD 47 Billion by 2022. This growth is very simple to justify, due to the immense number of advantages ERP software has as compared to an exclusive accounting software.

Accounting Software vs. ERP Software

First, let’s get a quick look at the definitions of accounting and ERP, and a basic understanding of what the respective software are built to handle –

Accounting

Accounting is the simple process of managing the financial activity of a business - mainly General Ledger, Accounts payable, Accounts receivable, Revenue, Sales & Invoicing and Financial reporting are the different major areas that fall under the purview of accounting, and subsequently, of accounting software or a cloud accounting software.

ERP

ERP or Enterprise Resource Planning software is an integrated digital platform that contains multiple modules for handling all the different business processes and not just accounting process. ERP software will normally include Procurement to Pay, Project Management, Vendor Management, CRM, Inventory Management, Compliance Management, Asset Management, Finance and Accounting, Sales modules and others depending on the software providers.

With such integration and unification of the different processes in a business, ERPs provide a much more comprehensive solution as compared to software that is only designed for accounting.

Benefits of choosing Cloud ERP Software over AccountingSoftware

It is obvious at first glance that ERP software will provide a much larger range of functions and tools to manage your business, as compared to accounting software, but the benefits of choosing a Cloud ERP software go beyond that. There are multiple advantages to Cloud ERP software that just accounting software cannot provide, such as –

Single Solution

Many accounting software will provide integration capabilities with other software to handle your other business processing needs, but Cloud ERP will give you all the tools and functions in one single package. Without the need for external integrations and the related hassles, the ERP software can streamline the automation and digitalization of your business processes with a single solution

Data Integration

Accounting software can maintain a database of a company’s financial data, and provide reports etc. based on that, but they lack a solid integrated central database structure that Cloud ERP software can provide. With data being collected from all modules across the different sectors of business management in the company, an ERP can provide you a single source of information, eliminate all duplicity in data, and give you a comprehensive master database that contains your entire company’s information for instant access, analysis and reporting.

Industry Specificity

Accounting software will give you generalized functionalities and tools for managing your accounts, that aren’t specifically designed for different industry-types. Cloud ERP software can be customized according to the specific needs and requirements of different sectors of Industry. For example, manufacturing industries can make special use of Inventory Management, Procurement to Pay and Asset Management ERP modules – something simple accounting software cannot help provide.

Ultimate Visibility

While accounting software can provide you with reports and data on your company’s finances and accounts, Cloud ERP can integrate that information with all the other departments and provide a comprehensive bird’s-eye view of your entire business at a glance. With inbuilt data analysis and reporting tools, ERP software can help you get the visibility you need to smoothly manage your business from one single platform

Remote Accessibility

Cloud-based ERP software is hosted online, and require no company infrastructure or servers to install any software. Simply log into your software online from a web-browser and immediately get access to the entire Cloud ERP platform at any time, from any place, using smartphones, tablets, laptops or PCs, whatever you choose.

Strong Data Security

Cloud ERPs are hosted on secure cloud networks such as AWS, that have inbuilt data security that you don’t have to worry about. This eliminates extra cost and hassle of having to set up your own data security systems, as you get to piggyback on the ERP software provider’s security measures simply by subscribing to their SaaS products.

The Perfect Cloud ERP Solution - TYASuite Cloud ERP

TYASuite Cloud ERP is World’s 1st Plug and Play ERP. With integrated modules for Procurement to Pay, Inventory Management, Asset Management, Sales and Distribution, Finance and Accounting, Compliance Management, Project Management, Customer Relationship Management (CRM) and Vendor Management, TYA Suite Cloud ERP can give you a unified user-friendly platform to manage your entire business from a single screen.

With robust reporting tools, constant alerts and notifications, interactive dashboards and 2500+ inbuilt plug-and-play features, managing your business has never been this easy – just sign up for the TYASuite Cloud ERP and automate and streamline your business processes. TYASuite Cloud ERP is best Cloud ERP for SMEs and mid-sized companies.

Save more than 50% of the cost by switching to TYASuite Cloud ERP. Talk to our process expert to get exact cost savings for your coming. With TYASuite Plug and Play cloud ERP you can go live just in 7 days- the fastest ERP Implementation in the world.

For an affordable, scalable, and flexible cloud ERP solution, look no further! Visit our website for more details, and get a FREE TRIAL of our product to test out the features.

TYASuite

A revolutionary ERP software meticulously crafted to help industries grow without burning a hole in their pockets. TYASuite is a one-stop solution for your company which can be implemented just within a few days.