ERP vs. Accounting Software: Is There A Difference?

With countless business software available now, choosing the right one can get slightly confusing. For example, many people think that ERP and accounting software are the same.

But, the fact is that ERP and accounting software differ in terms of their design, functionality and outputs.

Here is a look at the main difference between ERP and accounting software:

Accounting :

As the name suggests, accounting software is for managing your company’s financial books.

It’s used to handle the financial aspect of your business, which includes payments, accounts receivable, accounts payable, billing, sales, purchase orders, payroll, taxes, general ledger, etc.

If you are looking to streamline and simplify the recording of business transactions and creation of financial reports (income statements and balance sheets), you need accounting software.

ERP :

Enterprise Resource Planning (ERP) software includes all the features of accounting software, along with many other features.

In other words, an ERP system is a complete resource management system that can perform various functions.

In addition to monitoring your company’s financials, ERP software can manage your assets (tangible and intangible), human resources, materials, inventory, customer relationship management, and more.

In a few words, an ERP software can keep you informed about all of your business activities. On the other hand, accounting software gives a snapshot of your company’s finances.

The bottom line :

Should you invest in ERP or accounting software? It’s unlikely that accounting software will disappear soon. Companies have been using it for decades.

That being said, ERP is garnering a lot of attention lately, especially among global businesses as it leads to better integration of business operations, streamlines organizational workflow and improves overall improves efficiency and output.

If you’re using an ERP system, make sure it’s fully integrated with your shipping software. This can help take your business to the next level.

As a leading shipping software provider, ProcessWeaver

offers a wide range of multi-carrier shipping solutions to businesses across the world.

ProcessWeaver’s multi-carrier systems are designed to ensure a simple, swift and seamless integration with multiple ERP systems, which includes Oracle, SAP, Sage, Infor, Microsoft Dynamics, and more.

ProcessWeaver’s multi-carrier shipping products are used by 50,000 shippers in more than 172 locations around the world.

The company works with businesses of all types and sizes. Their shipping products are trusted by several carriers and freight forwarders, which include FedEx, UPS, TNT, DHL, and more.