The Difference Between Accounting Software & ERP Software

Although ERP (Enterprise Resource Planning) software and integrated accounting software have the same characteristics, their features, form and function are very different. It is this difference that often leads most mid-sized businesses to start their business with integrated accounting software which then begins to incorporate it with ERP software in line with their growing business.


However, making a wise initial choice or knowing when it’s appropriate to incorporate ERP software requires an understanding of how ERP software and integrated accounting software are different.

Functional Differences

Both integrated accounting software and erp software combine many business functions into one system. However, integrated accounting software combines functionality specific to the accounting area, while ERP software is a scalable system that can combine more and more useful functions.

ERP software can include other business functions such as human resources, inventory management, sales and distribution, purchase order management, suppliers and also financial resource management.

Purpose Of Integrated Accounting Software

Integrated accounting software seeks to improve efficiency and accuracy in financial accounting and cost as well as appropriate financial statements. Integrated accounting software achieves this goal by assimilating aspects of financial and cost accounting such as general ledger, journal entries, accounts payable, accounts receivable and fixed assets into one software. Because recording occurs in a single account set, integrated accounting software can make access to financial information faster and easier. It can also reduce the cost of administrative labor.

ERP Software Objectives

Unlike the integrated accounting software, ERP software combines data from different business processes into a comprehensive enterprise information system. The main objective is to facilitate the management of daily business operations.

Information stored in ERP software enables business owners and management to access such information easily in real time so as to facilitate them in making business decisions quickly and precisely.

Integrated Accounting Software Vs Software ERP

Basically, integrated accounting software and financial management module in ERP software is the same. Both include financial accounting functions such as double-entry bookkeeping, general ledger, journal, and reconciliation accounts. In addition, both systems also include tax analysis and reporting features that can facilitate business planning and budgeting. What distinguishes these two systems is the level of integration provided by the ERP software.

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