From the previous experience that I had as an accountant, I used all kinds of accounting software, like QuickBooks, NetSuite or Intacct. It could be very confusing find the distinction between an accounting software and a ERP system. Sometimes I even thought that they were the same thing. After this week’s lecture I got curious and went online to search for the differences between them.
Accounting software is “used to strictly to refer to the financial aspect of your business operations. These include accounts receivable, accounts payable, payroll, and trial balances. (ERP VS Accounting Software http://www.mrp.com.my/difference-is-between-erp-or-accounting-software/)
An ERP system on the other hand has more features than pure accounting software It’s a resource management system that not only monitoring the business’ financials, but also “tracks the following: tangible and intangible assets, human resources, and materials. Intangible parameters include working hours, product life cycles, key performance indicators, and customer relations.” (ERP VS Accounting Software http://www.mrp.com.my/difference-is-between-erp-or-accounting-software/)
Reference: ERP VS Accounting Software http://www.mrp.com.my/difference-is-between-erp-or-accounting-software/
Accounting software is more like a subset of ERP. When the company’s size is still small the pure accounting software may satisfy its business need. But a lot people believe that ERP system will gradually replace the traditional accounting software.