It’s important to understand the difference. In reality, accounting and financial reporting software is a subset of an ERP system. People sometimes erroneously use the terms accounting software and ERP software interchangeably. This also applies to stand-alone accounting and financial management software as they fulfill only limited needs when compared to an end-to-end ERP solution. Companies also require relevant features that serve the dynamics of industry-specific needs and challenges. Let’s understand the difference between accounting software and ERP in detail:Īs the world grows more complex with faster turn times, customer expectations for product personalization, and more data to manage than ever before, software that supports the operational efficiency of core business processes is essential. The demand for ERP software is expected to grow rapidly. The global ERP market is set to grow to $47 billion by 2021Īs research indicates 1, an increasingly competitive market compels organizations to adopt ERP solutions to keep pace with their competitors.Īs small and midsized manufacturers (and businesses in general) grapple with out of control business processes, caused in part by the disconnect between accounting and plant floor operations, the need for a single view of organizational processes is driving the adoption of ERP solutions.

In this blog, we’ll walk you through the difference s between accounting software and ERP solutions. However, many people use the terms “accounting software” and “ERP software” interchangeably. Other modules include supply chain, planning, inventory management, warehouse management, production, HR, sales, purchas ing, and more. Accounting software typically covers the management of areas such as financial reporting, accounts payables and receivables, banking, and rec ording of basic revenues/sales ERP solutions include multiple modul e s with accounting being one of th e m.

Erp accounting systems examples