ERP or accounting software: what does your business actually need?

What does each one do?

Accounting software records financial outcomes: journals, receivables and payables, cash and financial statements. ERP runs the operations that generate those outcomes — purchasing, receiving, storing, selling, production, payroll — and generates the accounting entries automatically.

Five signs you’ve outgrown accounting software

If three or more apply, it’s time to consider ERP:

• You have more than one branch or warehouse, each with its own file or software.
• The accountant re-keys warehouse and sales invoices by hand.
• You only know the month’s real profit weeks after it ends.
• Stock-count discrepancies recur and you can’t trace them.
• You need multi-level approvals on purchases and expenses.

Can you move gradually?

Yes, and it’s the safer route. Start with inventory and sales tied to accounting, then add purchasing and HR. What matters is designing the database from the start to accommodate growth.