What Is Difference Between ERP Software And An Accounting Software Solution?

In recent years, there have seen a lots of changes to each business vertical and their management software. Just after the establishment, a business consider the accounting system as a necessity, without which it could not be able to get on-time and accurate finance related information. Now, the question is what type of application a business should implement, a simple accounting solution or an ERP software?

In contrast, to completely elaborate the difference between ERP and an accounting solution, the difference between their functionality must be first understood. Besides understanding the functionality, one must also be aware that wrong software selection may lead the business towards failure or loss. So, choosing the best and the industry based system with good package would be a beneficial option.

Let's discuss each one individually to know better about them.

Accounting Management System

Accounting solution as the name indicates, designed to look after only on the financial transactions such as A/C payable, A/C receivable, payroll and trial balances. It is such mechanism which handles only individual account functions of an organization and plays a significant part in enterprise resource planning. Basically, it is precisely bundled with the various common modules that are purchase order, sales order, billing, general ledger, expenses, payment and timesheet management.

People mostly get confused and consider ERP and accounting as the same. But the fact is, that it is only a sub-part of an enterprise resource planning software that provide results related to only accounting activities.

ERP Software

In comparison to a single account management software, an ERP solution is a bigger software that efficiently covers all the functional areas of an enterprise. In this software, all the major departments such as human resources, finance, sales, accounts, production and logistics has been integrated in the form of well developed modules. It helps organizations to make their process flow effective and hassle free. Also, it allows all enterprises to make optimum use of their functional resources like men, machine, material and money.

Further, to carry out enterprise functions, most of the companies use a fully integrated business solution while few are using the individual tools for dealing the single operation. The ERP software is the one stop solution for those who are looking for such enhanced system which has the ability to facilitate entire enterprise instead of following the operations of only one module.


In conclusion, the fact can be considered that a single accounting system is a mechanism, can be known as other tools or applications that provide you with the facility of dealing with a particular department. The disadvantage of it, that it would not be responsible to provide functionality to any other department of an organization. Therefore, single systems will always help you in covering only a particular department.

But as we aware of the fact that all the organizations work in close coordination in order to attain easy functionality and constant growth, so they will definitely require a multi-module system. So, utilizing a single system will never fulfill their requirements in any how. It would be better, if they use a well integrated and multi-specialized business management ERP system to organize their processes.

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