ERP Applications and Vendors
  Home ERP Benefits Features Selection Implementation SAP Oracle Microsoft Dynamics Books
ERP Guide
Business Performance
Change Management
Data Migration
Decision Making
Enterprise 2.0 S/W
Enterprise System
ERP and Accounting S/W
Fix Implementation Failure
Functional Modules
Guide for Executives
Implementation Failure
Implementation Time
Improve ROI
Manufacturing S/W
Measuring Performance
Negotiating Agreements
Open Source S/W
Outsource Service Providers
Outsourcing Software
Project Management
Replace Existing Software
SAP Business One for SME
S/W for Telecom Sector
Syspro Accounting S/W
Vendor Shootout
Web Vs Server Based
When to Consider
 
Beginner's Guide
Basic Features
Become Consultant
Before Implementation
Best Practices
Certification Course
Effects of Enterprise S/W
ERP And CRM
ERP and SCM
Evolution and History
Finance Module
Functional Consultant
Functional vs Technical
Future of ERP
Future Trend
GAP Analysis
Get Maximum ROI
Goals and Objectives
Guide for Beginners
History and Evolution
Implementation Methods
Implementation So Long
Implementation Stages
Implementation Steps
Implementation Timeframe
Increase Productivity
Industry Focus
Issues In Outsourcing
Latest Trends
Major Pitfalls
Market and Industry
Market Growth In India
Methodologies
Open Source Popularity
Regulation Governing
Rising Need of S/W
Roles of Consultants
Software as a Service (SaaS)
Software for SMEs
System Requirements
 
 

What Is The Difference Between ERP and Accounting Software?

SocialTwist Tell-a-Friend


ERP is an integrated system which includes Financial, HRM, Inventory, and material management, SCM, CRM and HRM. The purpose is to automate every single business process of the company to make it fast and accurate. It is built on centralized database and the modules are integrated which prevents data redundancy. The system is consolidated system which follows uniform standards and it stays same across countries, geographical boundaries and system environment.

Some of the features are that it should be integrated and operative on real time data, all the data should be integrated at one place and users should be able to access information from the system at anytime.

Initial Developments: The initial forms of ERPs were basically accounting software which was used to ease the process of everyday monetary transaction and these systems were in use in 1980s. Later the demand for automating the process of manufacturing increased and with the rise in demand for a better system led to the development of enterprise wide systems and now the next generation systems are web based systems which allows the employee and the external resources of the organization such as business partners, suppliers and customers to get real time data anytime from anywhere.

Advantage of ERP Over Accounting: Accounting is a part of ERP and it is the backbone of the complete system. It provides a clear idea about the financial situation of the company and everyday financial transactions can be tracked through the module but the module itself is not complete to provide all the features. In an ERP one can get details of everyday transaction from the gate entry to employee attendance and stocks record but in financial module one cannot track the stock records and future requirements of stocks which are found in inventory module. The reports of inventory module can provide how to optimize the flow of good to warehouse to meet the demand of the customers, packaging and production.



If a company has a production unit - it may require updated information about the stocks and future stocks to fulfill the demands and an accounting module may not be able to provide it. With the improvement in technology the features such as e-business, e-Telecom, online CRM and many other cross functional features are provided by ERP.

Main Differences

1. Accounting software and ERP are completely different of species.

2. Accounting software enables organizations to manage the financial transaction and enterprise software enables management of each and every department of the organization with ease.

3. Accounting software enables synchronizing the accounting details and bills and enterprise software enables one to synchronize data from every department at one place and prevents errors caused by transfer of data from one place to other. It prevents data redundancy as the data is centrally managed and it is updated at one place from every department.

4. The cost of implementation of finances module may be less because it has limited functionalities whereas an ERP may be expensive and it can take more than 24 months for implementation in a large or midsized organization.





 Read Related Articles

ERP SoftwareMinimum System Requirements to Install SAP
ERP SystemRequirements To Become An ERP Consultant
Enterprise SystemERP Vendor Shootout
Enterprise SoftwareRegulation Governing on ERP Solutions

  SocialTwist Tell-a-Friend
Review Section
Aplicor  
Dynamics AX  
Dynamics CRM  
Dynamics GP  
Dynamics NAV  
Dynamics SL  
Epicor  
Godrej eNcompass  
JD Edward  
Infor  
Microsoft Dynamics  
MySAP  
Netsuite  
Oracle  
Ramco  
SAGE MAS90  
Sage X3  
SAP  
SAP Business One  
Tally Accounting  
 
SAP Section
ABAP Module  
Architecture  
Business Warehouse  
BW Module  
Career In ABAP  
CO Module  
Components  
Course Duration  
Course Fees  
CRM  
Customization  
Data Warehousing  
Enterprise Portal  
FI Module  
Features  
HRMS Software  
HR Module  
Job Opportunities  
MM Module  
Modules Features  
Online Training  
Performance Tuning  
SD Module  
Web AS  
Web AS Features  
xApps