How is ERP different and better than an accounting software
The world is rapidly evolving with new age technologies like Cloud computing, Artificial Intelligence, and Internet of Things. In order to have an edge over competitors, it is time for an enterprise to get the basics right about these critical and relevant technologies for future success.
The underlying of any organisation is its strong system viz. accounting, inventory, project management, supply-chain, statutory compliances, CRM, and HRMS. While most companies have an accounting system, what they lack is a robust Enterprise Resource Planning or ERP as it is popularly called. Many a times ERP is misunderstood to be synonym for an accounting software. Due to lack of clarity and awareness, small and midsize businesses are often left confused whether they should adopt an ERP or go for a simple accounting software. Our attempt through this article is to give you a fair understanding of both these software to help you in better decision making.
Functional difference: An accounting software helps manage the financial part of your operations by keeping a record of all your business transactions such as account receivable, account payable, journal entries, general ledger that can be helpful in generating financial reports like income tax statements and balance sheets. However, one crucial feature that is missing in an accounting software is data-driven forecasting. Due to lack of this feature, enterprises are unable to forecast or predict the supply and demand of goods as well as products. On the other hand, an ERP software takes care of every aspect of business operation – accounting and finance, HR and payroll, CRM, inventory and supply chain, and project management. Additionally, it is beneficial in forecasting the future that can help an organization in increased profitability. For instance, wholesalers are always dealing with large volume of stocks. Hence, planning and forecasting of inventory is important. With Deskera’s Cloud-based ERP one can report and track stocks real-time. This has a major impact on the overall cost and revenue of the company. Depending on the demand of the inventory, wholesalers can decide as to what type and quantity of goods/raw materials needs to be in stock. They will also be able to see what stock is committed at any given time.
Standalone software vs integrated suite: As mentioned above, an accounting software takes care of accounts alone. In such a scenario, if you want to manage your other every day tasks such as stock management, payroll processing, workforce management, customer and lead management, you need to purchase separate software for each. You would pay separate license-fee for different on-premise software, along-with additional costs for server-hardware, security, maintenance etc. Often these software do not talk to each other, leading to multiple data entry, increased man-hours cost and time-wastage. An ideal ERP is a fully integrated software suite wherein each of these applications are interwoven with each other. It uses a single database which allows different departments to communicate with each other seamlessly, without having to maintain data at multiple locations.
Single office vs multi-location office: An accounting software is best suited for a single set-up where you have to maintain the financial recordings of an organization in silo. However, if you are a growing organization and want to expand your business to multiple locations Cloud ERP is the best fit for your requirement. Deskera’s Cloud ERP for SMEs can be accessed from anywhere on any mobile device – phone, tablet, or a laptop. All you need is an internet connection.It provides a consolidated as well as comprehensive set of information through a simple login.
Deskera is one of the fastest growing ERP vendors in India and the No. 1 choice of SMEs in India. Digital economy needs innovative financial technology to expand and thrive with the growing global user base. Deskera brings that innovative solution to the world. It helps in smooth transition and integration of the financial structure from old version to the new one. Today, more than 3,000 businesses, with approximately 80,000 users, manage their companies using Deskera products. The organization has always been committed to provide world-class technology to SMEs so they can succeed by running more efficiently. It has been at the forefront of helping SMEs improve their businesses and contribute in transforming local enterprises into global-scale businesses.