Categories
Small Business Accounting

Major Differences Between ERP and Accounting Software

People that are actively involved in the business world keep on using some technical terms so frequently. Many times, they even forget that those industry jargons are not understandable to everyone. Same is the condition of ERP software; they are the essential tools for the experts, but maybe a complicated term for the beginners.

So, when you are interested to know how ERP differs from traditional accounting software, it is good to check in-depth details about both these topics. It is observed that many people use these terms interchangeably, but in actual ERP and Accounting software are two different things. Their functionality and applications vary by a considerable level.

Major Differences Between ERP and Accounting Software:

Today, with the help of modern cloud technology, you can make use of customized accounting software and ERP (Enterprise Resource Planning) software like SAP, Oracle to manage your financial transactions and ensure stress-free bookkeeping. This can be easily deployed in the cloud and used a subscription service instead of installing your own servers and purchasing software licensing.

But you need to understand that both are different from one another, before you can decide which will suit your needs better.

ERP Vs. Accounting Software:

The basic difference between both these terms is that the accounting software usually helps to covers areas like banking; accounts payable, receivable; financial reporting and some basic sales recordings. In simple terms, accounting software are designed to manage a few specific business areas. However, ERP software further includes the basic functionality of accounting along with few additional abilities to manage logistic requirements, supply chain, warehouse, inventory, eCommerce and contact management as well. ERP can be better defined as a fully integrated tool with an end-to-end solution for businesses.

Those who are new to these terms may require precise definitions of both to understand them better. Below we have highlighted the distinction between both these terms with clear definitions:

Accounting Software:

Accounting software, as the name indicates, is primarily used for managing accounts of a company. Practically, accounting software takes responsibility to manage financial aspects of the business while making a perfect track of all business transactions, journal entries, AR/AP and general ledger utilization. It also includes details about balance sheets and income statements. Accounting software is the most reliable tool to maintain the financial health of an organization.

ERP Software:

On the other side, ERP stands for Enterprise Resource Planning, and this module is capable enough to track the intangible and tangible assets of a company including inventory management, order fulfilment, production management, invoicing, reporting, and job costing as well. At the same time, it extends support to Customer Relationship Management and Human Capital Management. Basically, this tool is designed to pack the entire business into a single suite with efficient management options.

The accounting software are not designed to offer Manufacturing Management, but ERP software can handle these needs very well. This feature includes Production Planning, Bill of Materials and many more. While fulfilling the rising demands of the customers, businesses often face situations where it becomes difficult to manage the supply of shipments and production resources. It usually leads to missed deliveries, order changes and machine breaks as well. In such situations, businesses need production management software to manage a variety of aspects with ease. When accounting software fails to handle such complexities; the ERP can serve the needs very well.

In simple words, the ERP solution helps businesses to find more ways to grow with a satisfied customer base in the competitive market. Let’s find out the three major differences between accounting software and ERP:

1. While the best free accounting software manages company’s accounts or how your money moves,
ERP is a business software that helps you to track your inventory management, tangible and intangible assets, invoicing, order fulfillment, job costing, etc. In accounting, you deal with the general ledger, account receivable and payable, payroll, expenses, and more. But enterprise resource planner (ERP) helps in managing issues that are not addressed in accounting. In other words accounting functions are subset of ERP software. ERP is an account software plus much more.

2. Usually there is a big difference when it comes to cost of ownership of software between ERP & Accounting software. While Accounting softwares are usually low cost, a small business can easily afford an accounting software. Whereas cost of implementation and maintenance of ERP can be highly expensive even for medium to large sized businesses.

3. Another major difference is the amount of personnel required to manage the software. While accounting software can be managed entirely by the small business owner. Maintain an ERP system would require a team of professionals to keep it up and running. Learning curve is also usually steep for ERP software.

4. The accounting software has restricted or basic inventory tracking,
along with the web-based add-ons. On the other hand, the ERP system is flexible enough to set the users free from the shackles in accounting software. It also enables you to increase the accuracy and customer services of your business. Meanwhile, ERP helps you in reducing the stock carrying costs, inventory write-offs, and labor costs. In addition, the ERP’s inventory management module helps you in making faster and accurate decisions that are critical in today’s complex international inventory environments.

5. ERP can help in planning your resources required for your business like amount of raw materials required for production process, also help in managing highly complex production line, however an accounting software lacks such kind of functionality.

While both are important for your business in their own unique ways, the ERP is more flexible compared to the accounting software and lets you manage different tasks more conveniently. It all comes down to the needs of your business and the size of the business. Usually a small business can be quite happy with accounting software for quite long time, where as comparatively big business or business handling lot of manufacturing and inventory would need ERP software to manage their business effectively.

Categories
myBooks Online Accounting Software

Which is the Best Accounting Software for Small Businesses?

When running a small business, it is often challenging to manage expenses and maintain a financial book. That’s when you need the help of functional cloud-based accounting software to help you run your business smoothly from anywhere.

For small business owners, managing their firm’s accounting system and maintaining financial book is essential for keeping a check on the amount payable and receivable. But managing all the financial data manually is not possible. Therefore, you require myBooks, practical and highly-customizable accounting software to utilize your business’ day-to-day functions with ease.

Besides financial management, it even integrates a multitude of other applications and programs to run your business effortlessly. MyBooks by Zetran is designed to let users import and export their financial data from different applications and even track various business functions. All thanks to its integration capabilities, you can easily house all the crucial data in one accessible and user-friendly space.

Customization

myBooks has easy customization capabilities for enabling users to easily track down various business activities, as per their individual business requirements. A fashion store may have different software requirements than a shoe brand. Therefore, myBooks allows users to get their software custom-made to easily integrate automation and essential business-related features.

myBooks can even communicate with multiple online systems. So, there is every chance left for users to make any errors while entering data. This ultimately saves their time, as there is no need to re-enter data on multiple platforms.

Real-Time Reporting

myBooks is focused on offering real-time, comprehensive financial reporting. These financial reports allow users to see a big picture while analyzing a company’s monetary solutions. Being the best QuickBooks alternative, myBooks is highly advanced and also offers unconventional accounting in the form of “multidimensional” charts.

Ease of Use

With myBooks, everything becomes easily accessible, as it’s easy to use through its simple user-friendly dashboard. Its interface is very intuitive and even provides snapshots of different information, such as overdue invoices and income, as well as profits/losses. However, ease of use means it’s easy to screw up.

Using this software, you can even close the prior periods by entering a closing date. However, you can go back to enter the data even of those close periods if you know your closing password. This makes the auditing process simple, quick, and painless.

Automation

It is considered the best QuickBooks online alternative for a good reason, which is easy integration and automation. It allows you easy integration of various features by automating reporting, payments, reconciliation, and other processes for increasing efficiency.

Customer Service

myBooks provides 24/7 customer service and this is great for small business owners that work almost 24 hours per day. They easily get accounting software convenience with 24/7 availability.

Categories
Small Business Accounting

Factors to Keep in Mind When Selecting Online Accounting Software

Selecting a good online accounting service is not easy. This is because you put in a lot of trust and your firm’s financial future in the hands of some other individual or company. That’s why you need to be careful when selecting the best and professional online accounting service.

When hiring a virtual accounting company, there are certain ways to receive their services at affordable prices. Choosing the best accounting service online means you need to determine your company’s requirements first and after that evaluate the following factors to make the right decision.

Factor 1: The Level of Online Accounting Services You Need

It is essential to find out the type of online accounting services you need for your business. Many customers are tired of paying higher amounts to their in-house bookkeepers on a daily basis. To cut down that extra cost, you can choose a good account software like myBooks, which is possibly the best QuickBooks online alternative for many users. Whether you require monthly, weekly, or daily online accounting services, myBooks may help you customize your package to meet your business needs and budget.

Factor 2: Local Online Accounting Firm

If you are concerned about never meeting your virtual accountants, it is best to choose a local online accounting service. For instance, you can hire Zetran, a US-based online accounting company that offers the best QuickBooks alternative, myBooks. They work with a team of highly qualified, well-trained, and certified virtual accountants and bookkeepers based in the US.

Factor 3: Software Technology and Security

We know that many small business owners look for highly advanced technology when it comes to hiring a good online accounting service. While it is a good way to choose a professional company that may handle high-tech software, you must also consider that the virtual accountants also keep your data 100% secure. Zetran uses certified and secure facilities for your data protection while using SSL encryption. Additionally, they even protect your data by backing it up in a cloud-based system.

However, you must also remember that software is not as important as the people running it. This brings us to our fourth factor that you must consider when hiring an online accounting company.

Factor 4: Your Online Accounting Company’s Hiring Practice

When you are paying for quality, you need to assure that your quality work is being done only by experts. Choose online accounting companies that hire the best-of-the-best accountants and bookkeepers to handle your financial data and reporting online. Only a professional team would be able to give you the desired accounting results while maintaining your finances and daily expenses, as well as keeping an eye on various day-to-day activities.