Accounting software answers "what happened financially". ERP also runs the operations that create those numbers: orders, stock, purchase, payroll and production.
Side-by-side
| Area | Accounting software | ERP |
|---|---|---|
| Core purpose | Record and report financial transactions | Run and connect operations across departments |
| Stock | Basic or via add-ons | Multi-warehouse, batch, serial, reorder |
| Sales and purchase workflow | Invoice and bill entry | Quotation to dispatch to invoice; requisition to GRN to bill |
| HR and payroll | Separate tool | Built-in modules |
| Approvals and roles | Limited | Role-based approvals and audit trail |
| Reporting | Financial statements | Financial plus operational reports and dashboards |
When accounting software is enough
A single-location trading or services business with simple stock and a small team can run well on accounting software plus a few spreadsheets.
When to add ERP
- Sales, stock and accounts are entered separately by different people.
- You need approvals, such as purchase orders above a limit.
- You have more than one warehouse or branch.
- Production, batches or serial numbers must be tracked.
You do not have to drop your accounting tool
Many businesses keep Tally for the accountant and run operations in ERP, with vouchers and ledgers synced between the two. This keeps your accountant on a familiar tool and removes double entry for everyone else.
A quick test
Ask three questions. Is data typed in more than one place? Do you need approvals before a purchase or discount? Do you ever find that stock and books disagree? If the answer to two of them is yes, accounting software alone is probably holding you back. If all three are no, keep things simple and revisit when you add a branch or product line.
Related guides: ERP Software Development Company
ERP Software Development Company IndiaTally Integration Services IndiaERP vs Tally — Which Is Right for Your Business?ERP vs Excel — Why Excel Is Not Enough
Keep Tally, Add ERP
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