Even though there are similarities between ERP systems and accounting software functionalities, they have different services. An ERP system consists of an application package, an integration program, and multiple modules. Accounting software is a special financial and accounting management system. Furthermore, the ERP system can be used for various processes within the company and can be integrated with other management software. Check out other differences in the following article.
Functionality
These two systems have functions that are not much different, namely facilitating management in the company’s financial division. However, ERP systems have broader functions. ERP can carry out almost all operational activities within the company because it consists of a series of programs to integrate various needs from various divisions.
ERP systems allow the integration of other software a company may have previously had. This differs from accounting software, which only functions for accounting management and cannot be integrated with other software.
Features
Accounting software usually includes features provided in packages from service providers. The features provided vary between vendors, but common features for financial management usually become standard. Because this software was created to make it easier for accountants to calculate cash flow, make reports, and perform other calculations, the features are more detailed and usually more complex.
On the other hand, ERP system features are very flexible and can be configured to suit processes within the company. ERP systems can be set to different accounts and you can include specific features with easy customization.
Using ERP, you can adjust your business model, accounting needs, and business goals. Of course, this advantage can enable companies to gain maximum profits because the ERP is more productive.
Data Entry/Access
This is one of the main differences between an ERP system and accounting software. Data entry in accounting software requires all parties to send it first to the accounting/finance division so that it can be input. This is because access is only owned by the company’s finance division. Meanwhile, for the ERP system, employees can enter data directly into the system because it will be automatically integrated into the accounting/ finance module.
Transactions in the ERP module are more flexible because of the automation function. For example, receiving goods from the warehouse immediately fills in the data in the system. Later, the system will be configured so that data related to the accounting field is synchronized.
Number of Users
Accounting software has fewer users than ERP systems. This is because each software is designed for a different user scale. Accounting software is designed to be used by certain parts of the company.
ERP is designed for use by all companies with a large number of employees. There are far more ERP users in a company; it can even reach hundreds to thousands of users. The large number of users also does not affect the system’s performance.
Price
Accounting software is cheaper in terms of cost because its scope is also narrower than ERP systems. The ERP price is certainly more expensive because the ERP system provides a complete solution for all company departments and divisions with additional productivity features. If the company is sure about the choice of software it wants to use, budgeting issues must also be adjusted to the company’s circumstances.
ERP Systems vs Accounting Software
| No. | Aspect | Software ERP | Accounting System |
| 1. | Functionality | Financial management features can be customized according to needs | Manage company finances and all aspects of the company with integration and automation. |
| 2. | Feature | All employees could be hundreds to thousands | More detailed and specific financial management features |
| 3. | Data entry/access | All parts are given access | Just the financial part |
| 4. | Number of users | All employees, could be hundreds to thousands | Just the financial part |
| 5. | Price | More expensive | Cheaper |