What are the main differences between SMB accounting software and an ERP system?

techinnews
techinnews October 25, 2017
Updated 2022/04/14 at 11:01 AM
What are the main differences between SMB accounting software and an ERP system?
What are the main differences between SMB accounting software and an ERP system?

As small business applications such as Xero, MYOB and QuickBooks have grown in feature sets and capabilities, it has become more difficult to tell the difference between accounting and ERP (Enterprise Resource Planning) software.

At one point, Accounting software just handled the General Ledger – the debits and credits necessary to produce financial statements for a business. But over the last few decades, accounting software has expanded to include more advanced features such as integrated payroll, invoicing, payments, quotes, purchase orders, and inventory – features that previously were the exclusive domain of ERP systems.

At some point, small business accounting software and integrations with third-party apps can’t do the job anymore. That’s where ERP comes into play.

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