The Difference Between an Accounting Software and ERP

Technology evolves in countless ways, and there are different instances wherein it affects the business world. With this evolution, it blurred the lines regarding the distinction between enterprise resource planning (ERP) solutions and accounting applications. Albeit there are functionalities found in one enterprise solution that can be found in the other, the two concepts are, technically, still different.

While some companies might disregard the differences as the whole idea seems trivial, but this notion is important for one reason: don’t compare apples to oranges, but compare apples to apples. In other words, if you’re unaware of the differences between the two types of enterprise software solutions, then you’ll be basing your buying decisions on different product categories. Read on to get to know a quick rundown on accounting software, ERP solutions, and their main distinctions.

aptitude software

The Accounting Software

To summarize things right off the bat, an accounting software, like the products offered by aptitude software, is a subset of ERP. It’s a term strictly used for the financial aspect of business operations. The financial management software can include features tending to the organization and administration of account payables, accounts receivables, trial balances, and payrolls. It can also include other functionalities to help with other business activities such as sales orders, billing, general ledgers, purchase orders, electronic payments, and time sheets.


An ERP application can have all the functionalities found in a financial management software, and perhaps even more. It’s a resource management system that can help businesses streamline multiple processes including human resources, materials, and tangible and intangible assets.

The Integration of ERP and Accounting Software in Businesses

Many ERP solutions of today offer accounting applications as part of their entry-level packages. The requirement of automating intricate data reporting and recording processes grow as the business matures. In time, users can add additional modules to the software solution to increase productivity. As such, if a company starts out with a simple accounting application, it can eventually grow to a full-blown ERP solution.

Startup businesses that want to get a fresh start in streamlining their intricate financial processes can start with an accounting software. As the workforce grows and so does the company itself, the need for having an ERP solution develops as well. One good way to know if your business requires the accounting solutions it currently uses to evolve into something more proficient is when the company decides to go after a global audience.