The subject of ERP software can sometimes seem complex or even vague. This is why we decided to help you by distinguishing the difference between an accounting software and an ERP software.
The subject of ERP software can sometimes seem complex or even vague. This is why we decided to help you by distinguishing the difference between an accounting software and an ERP software. Let's start by explaining what accounting software is and then look at why it is important to have one in your business.
An accounting software is an ERP solution tailored to your business that helps with accounting tasks. For this purpose, there are several solutions that you can select for your company.
With real-time data, updates and many features, it allows you to efficiently manage all of your company's accounting processes such as accounts receivable, accounts payable, general ledger and bank management modules.
However, an accounting software does not necessarily include information related to the company's operational processes, such as inventory, sales, purchases and production.
Freshbook and Quickbooks are two good examples of companies that offer accounting software, both for general business support and for specific needs.
Whether it is for a small business (SME) or even large companies, the implementation of an accounting software brings several advantages to your company. It allows you to avoid repetitive data entry and the errors that come with it, in addition to saving time. Thanks to best practices, we can now automate the accounting process of a company.
The accounting software also provides a financial analysis as well as better distributed budgets, automatic calculation, easy to use, facilitated accounting entries. Finally, it allows the centralization of the data in the same place and more traceability.
The step of choosing your accounting software can sometimes seem vague. The first step is to know your company's needs. You can ask yourself the following questions:
Then, knowing the company's needs, you can choose the right type of software for your business. Finally, it is important to establish a list of criteria and what you expect from the software to help the expert serve you better.
Enterprise Resource Planning (ERP) is a system that improves all of a company's processes such as financial resources, distribution and other operations management optimized under a single platform.
This allows you to automate several tasks, which allows you to save precious time and invest it in other things that are important to you. An ERP system can be general as well as specialized for a particular sector such as accounting and financial management.
The goal of the ERP is to improve data management across the entire company. In addition to facilitating daily tasks, it also breaks down silos by enabling and facilitating information sharing.
Another important goal of integrated management software is to increase productivity and efficiency by consolidating data on a single platform. Having all the data gathered in one place will allow you to better manage it and avoid communication and data entry errors.
In addition to having real-time updates, it reduces administrative tasks and lowers costs for the company.
Within the ERP, there are multiple functionalities that fulfill different purposes. The first example can be accounting software — it takes care of your company's accounting tasks, centralizes all data and creates traceability. Another example of useful software is inventory management software, which allows you to control the inventory system at all locations and optimize the tracking and cost of distribution.
The implementation of an ERP software has many advantages, but also some limitations for the business processes.
Advantages:
Limitations:
ERP software can help all of the company's processes thanks to its multiple functionalities such as distribution, manufacturing, financial and transversal functionalities. This management solution brings together all of a company's processes under a single platform, thus eliminating work in silos and avoiding the repetition of data entry.
On the other hand, the accounting software is one of its functionalities and helps with the financial statements. It takes care of the invoicing and its seasonal management, and setting up interfaces with other modules.
In short, an ERP system will optimize and automate the different functionalities of the company thanks to a single software that groups both the accounting and operational modules. The ERP software allows the creation of accounting entries automatically during the different operational activities of the company.
At Bluebee, our financial module includes:
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