This is why knowing the difference between the two may sound trivial, but it’s important for one reason: comparing apples to apples and not to oranges. To put it simply, accounting software is a subset of ERP, though this answer may come as nearly reductionist and simplistic. A lot of people use these two concepts interchangeably, but, technically, they are different. The wide array of financial software today has blurred the distinction between accounting and enterprise resource planning (ERP) solutions. An example of an ERP software is NetSuite ERP. On the other hand, ERP not only has accounting features built-in but also tools to manage inventory, supply chain/s, contacts, ecommerce, and more. Accounting applications like FreshBooks, usually only cover the financial side of business, such as accounts receivable and payable, banking, and reporting. The difference between ERP and accounting software is that of scale.
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