What’s the difference between ERP software and accounting software?

Do you need to upgrade your existing accounting software? Or are you looking for new software for your accounting department? If so, you may be trying to determine if accounting software or ERP software is the right option for you. In this blog article, we’ll define and discuss the differences between accounting software and ERP software.

What is accounting software?

Accounting software consists of accounting, financial management, and banking capabilities with limited reporting options. Usually, this software is only used in the accounting department and the finance department. You can use accounting software to create financial statements, reconcile bank statements, create tax audit files, etc.

Here are some reasons you may want to choose accounting software:

• To get a low-cost solution.
• If you only need basic accounting and bookkeeping features.
• You don’t need many users for your software.
• For minimal 3^rd party integration requirements.

What is ERP software?

ERP software gives you access to CRM, inventory management, HR, and Data Analysis in addition to basic accounting functionality and in some cases other industry-specific modules. ERP software is a good choice for small businesses that are experiencing tremendous growth and need software to scale with their business operations. An ERP solution is most often used across all business departments.

Here are some of the reasons you may want to consider ERP software:

• To get real-time visibility into different departments of your business.
• If you foresee a lot of growth in your business and want to make sure you have a scalable solution that will grow with your business.
• You want better integration between your different business departments.
• To boost your productivity, transparency, efficiency, and effectiveness.
• For a 360-degree view of your organization’s health and performance.

At CTO Associates, we offer Sage 50 and QuickBooks as accounting software options for small businesses. We also offer Acumatica and Sage 100 as ERP solutions for small and mid-sized businesses. Interested in a demo or evaluation of accounting software or ERP software? Contact CTO Associates to schedule your free consultation today. We look forward to speaking with you.