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Difference Between Accounting Software and ERP

Accounting Software vs ERP

Summary: Difference Between Accounting Software and ERP is that Accounting software helps companies record and report their financial transactions. While ERP also known as Enterprise Resource Planning is used in industries to organize a set of activities and helps an organization to manage its business.

Difference Between Accounting Software and ERP

Accounting Software

Accounting software helps companies record and report their financial transactions. With accounting software, business users perform accounting activities related to the general ledger, accounts receivable, accounts payable, purchasing, invoicing, and payroll functions. Accounting software also enables business users to write and print checks, track checking account activity, and update and reconcile balances on demand. Most accounting software supports online credit checks, invoicing, bill payment, direct deposit, and payroll services. Some accounting software offers more complex features such as job costing and estimating, time tracking, multiple company reporting, foreign currency reporting, and forecasting the amount of raw materials needed for products. The cost of accounting software for small businesses ranges from less than one hundred to several thousand dollars. Accounting software for large businesses can cost several hundred thousand dollars.

ERP

Enterprise resource planning (ERP) provides centralized, integrated software applications to help manage and coordinate the ongoing activities of the enterprise, including manufacturing and distribution, accounting, finance, sales, product planning, and human resources. The ERP system installed at each organization must be customized to match the business requirements of the enterprise. At a large company, an ERP system may take four to six years to implement and cost hundreds of millions of dollars. The organization hopes to regain the investment through the advantages offered by ERP.

The ERP system installed at each organization must be customized to match the business requirements of the enterprise. At a large company, an ERP system may take four to six years to implement and cost hundreds of millions of dollars. The organization hopes to regain the investment through the advantages offered by ERP.

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