Can there ever be a comparison between a buffet lunch with the widest spread and a lunch with a single dish? Agreed that both are meant to satisfy hunger but is that all? The first takes care of every part of the palette, the stomach and the mind while the other concentrates ONLY and ONLY on the stomach!
The same to an extent thought in a very different context is the situation with ERP and its essential difference from an accounting software. Today we explain in detail how is ERP different from accounting software in the context of cloud-based accounting software in india.
1. ERP is a cloud-based system that takes care of an enterprise’s planning and execution of all its activities direct and indirect which uses their resources, be it man, machine or money. An accounting software by comparison deals with a very narrow range of activity in that it takes care of the accounting of money, both receipts and payments.
2. ERP these days is a cloud-based system which in quite a few cases is sold as a SAAS service. By comparison, an accounting software is a stand-alone IT software product that is installed on an enterprise’s own machine and which is used exclusively for the latter’s accounting work.
3. Scope of ERP or a cloud-based accounting software is vast. They cover practically every aspect of the working of an enterprise right from HR to Sales to logistics, decision-support and of course, accounting. In these activities too, their scope is vast to cover every aspect of the work at hand. For instance, the HR part of the ERP covers everything from intricate personal details to an employee’s SWOT analysis, his/ her promotion details and so on. In fact, so much information is always available in the ERP that managements worldwide have started to use the same as a dedicated decision support system.
4. An ERP package has to be configured to an enterprise’s needs. The same isn’t the case with a simple accounting software! An enterprise could be a SME, a multinational, a large very large enterprise and so on. The ERP package has thus to be configured to the needs of an individual organization, and all its peculiar needs like for instance, an organization selling items in cash vs others doing it thru more organized ways.
5. Cost of ERP packages runs in lacs whereas a normal accounting software is only in hundreds! Because the ERP package is vast and humongous in its scope, it costs astronomical and way about that of any accounting software.
6. ERP packages don’t have cracked/ pirated versions! Most organization, and more so the smaller ones run pirated accounting software to save on money. The same can never be the case with an ERP package given its size and complexity which needs dedicated support at all times. An ERP package in fact needs dedicated support as part of its very existence, and is far removed from a one-time accounting software.
7. ERP packages in most cases are cloud based, the exact opposite of accounting software which are legacy based. Cloud based products invariably update themselves with the latest features as also patches so as to secure information therein. In the case of an accounting software, once installed, there’s just about no chance of its being upgraded. The reason for the latter are quite a few including the issue of money, lack of dedicated support, lack of essential codes etc.
8. ERP buyers do not need to buy accounting software! If the ERP package is the IT equivalent of a 4-bedroom apartment with separate facility for servants and househelps, the accounting software is the equivalent of the servants’ accommodation! Comparisons don’t make sense. Those buying an ERP then don’t need to invest in a lowly accounting software. As for those investing in an accounting software and expecting the results of an ERP, it is time for them to leave fools’ paradise, and do that fast!