Guide
ERP vs accounting software: which does your business need?
· 4 min read
The difference in one line
Accounting software records and reports money. ERP covers the daily work that creates the money, such as selling, buying and stock, and feeds the accounts from it.
When accounting software is enough
If your business is mostly services, you do not hold stock, and you invoice a modest number of clients, accounting software alone is usually right.
When you need ERP
You are dealing with goods. Stock, suppliers and customers on credit all create work that an accounting-only tool does not do.
- You hold stock and need to know quantities by location.
- You buy from suppliers and receive goods in parts.
- You sell at a counter or take orders and deliver later.
- You want accounts to fill without re-typing.
A middle path
Some businesses start with sales, stock and purchases and add full accounting later. NEXTOREx plans work this way: Starter covers daily trading, and Business adds bank accounts, full accounting and advanced reports.