What is ERP Accounting Software and Why Do You Need It?

What is ERP Accounting Software And Why Do You Need It?

ERP accounting software is software that enables the organization to keep tabs on financial transactions and data. However, ERP accounting software goes beyond the accounting process core. Enterprise accounting software comprises modules specific to billing and payroll, account receivable, accounts payable, general ledger, and more. Historically, enterprise accounting has been a solution that was installed locally, but with modern-day technology, these solutions can be cloud-based.

Some key features of ERP accounting software’s main functions include:

  • Billing & Invoicing
  • Budget & Forecasting
  • Fixed Assets
  • Payroll
  • Inventory Management

Accounting vs. ERP Accounting

As the world becomes more complex with technological advances, customer expectations for product personalization and data management is increasing. Software that supports operational efficiency of core business processes is absolutely essential. Organizations also require relevant features that serve the dynamics of industry-specific needs and challenges. 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. Organizations like to erroneously use the terms accounting software and ERP software interchangeably. In realty though, accounting and financial reporting software is a subset of an ERP system.

  • ERP systems are more versatile
  • Stand-alone Accounting Software is not built for industry-specific needs
  • Accounting Software & ERP solutions are not always GAAP compliant
  • Accounting Software does not include sales or customer relationship management (CRM)
Accounting Software vs. ERP Accounting Software Infographic

Small Business ERP

Benefits of using ERP accounting software include automation, visibility, cross-departmental collaboration, and streamlined processes. Enterprise accounting is set up to address the concerns of small business owners. This includes developing talent in the finance organization, providing inputs into enterprise strategy, and measuring or monitoring business performance. This is particular the case in ERP for small businesses. ERP for small businesses offers better financial control and management.

Financial control software also provides businesses with a full suite of accounting functions to track daily financial operations and generate quarterly and annual financial statements. In addition, enterprise accounting software provides tools for reporting, analysis, budgeting, and planning. ERP for small businesses are designed to make financial control and management easier, while still maintaining reliability even in the most complex organizational situations. Enterprise account software, like Acumatica’s, provides users with a feature-rich accounting suite, fully integrated with Acumatica’s Customer Management, Distribution Management, Manufacturing Management, Field Services Management, and Project Accounting product suites.

  • Ease of Use
  • Security
  • Mobile Access
  • Customization
  • Integrated Modules

QuickBooks is Not Enough

Nearly every business uses accounting and financial management software. So, how is ERP accounting software better than stand-alone accounting software? Not long ago, QuickBooks, Sage, and Dynamics GP were undisputed accounting software leaders for small to mid-size businesses. As businesses faced stronger competition and their customers expected faster turn around times and more customization, the needs for ERP software became glaringly obvious.

The use of a stand-alone accounting software, like QuickBooks, can take care of basic accounting functions, banking and limited reporting. However, the standard packages that small and mid-size businesses have used for years, lack the ability to forecast the future. For example, QuickBooks, cannot scale with your company’s growth because it only operates on a proprietary database. Such stand-alone solutions were not built to connect company-wide processes and deliver real-time visibility into the status of those processes. As a result, you end up with silos of data that cant provide a transparent and complete picture of your business operations.

The Future of ERP Accounting Software

ERP is increasingly making up a huge part of accounting software products today. Most new products in this category are ERP, as more businesses demand better integration of their operations. Furthermore, businesses are more integrated globally. This is a situation that an ERP software can address better than a stand-alone accounting solution. Granted, the term “accounting software” won’t be forgotten easily, however, users have grown accustomed to using it for years. In short, accounting software and ERP solutions may mean the same thing sooner than later, when both systems are sold as a multi-tier bundle rather than two separate products.

To learn more about ERP and accounting and if it’s the right step for your business, speak with one of our experts! You can reach us at +1 818-484-5004 or email us at sales@biz-techservices.com. Additionally, you can check out our Acumatica General Business Edition page to learn more.