Accounting tools have come a long way from the abacus to the Incan quipu, to written ledgers and to ERP accounting software – an offshoot of the advancement of the computer and the internet.
Even with the advancement of the computer and internet, many organizations are still stuck with the good old Excel. While Excel, considered as a progressive accounting tool when it first came out, it has proven to be inadequate. Many of today’s organizations waste the time of their staff reconciling different data spread across multiple spreadsheets that contain conflicting numbers or are out of date.
Difference Between ERP in General and ERP Accounting Software
ERP is an acronym that stands for enterprise resource planning (ERP). While ERP in general and ERP accounting software have some similarities, the two have marked distinctions.
ERP in general is a collection of productivity software that organizations use to manage day-to-day activities, including accounting, human resources, inventory, sales and marketing, purchasing, supply chain and customer relationship. ERP accounting software, on the other hand, is one of the productivity software under the ERP software suite that is dedicated specifically to accounting.
Large and medium-sized organizations typically use the full ERP software suite from accounting to supply chain management, to human resources management and to customer relationship management. Small organizations, meanwhile, typically only use an ERP accounting software. As organizations grow, additional productivity software such as customer relationship management or human resource management software can be added and linked to the existing ERP accounting software.
ERP in general and ERP software for accounting can be hosted through on-premise, private cloud or public cloud. Each of these hosting venues has its own pros and cons.
When a software is hosted on-premise, everything dwells within the walls of your organization. When a software is hosted in the private cloud, your organization either purchase the software as a capital expenditure project, without the infrastructure and hardware costs or your organization pays a monthly subscription to a private cloud provider as an operating expense project. When a software is hosted in the public cloud, your organization pays a monthly subscription fee and your cloud provider will take care of the software, infrastructure and upgrading needs.
Some of the best ERP in general and ERP software for accounting such as Sage allows organizations to choose what is best for their interest, whether to opt for on-premise, private or public cloud. Sage also allows organizations to easily migrate from one hosting format to another or use a combination of on-premise, private cloud and public cloud.
What Is Cloud ERP Accounting Software and What Are Its Advantages?
The best cloud ERP software for accounting allows secure management of your organization’s accounts from any location. Cloud ERP software for accounting works by storing data in the cloud, either on a remote server or computer, and authorized personnel of your organization can access and interact with this data using the internet. With this software, authorized personnel gains an overview of your organization’s finances in real time.
Here are some of the beneficial features commonly found in some of the best cloud ERP software for accounting:
As opposed to on-premise ERP accounting software, cloud ERP accounting software saves your organization money. In cloud ERP accounting software, your organization simply has to pay the monthly subscription plans. In on-premise ERP accounting software, the software will be hosted in your organization’s own servers. The cost will simply file up as a result of costs arising from up-front capital, data back-up, IT staff or external IT support, hardware and software updates and security.
Cloud ERP accounting software allows authorized personnel in your organization as well as your organization’s accountant to view, update and oversee accounting information from any location. All they need is an internet connection.
Cloud ERP accounting software allows members in the team in charge of your organization’s finances and your organization’s accountant access and interact with your organization’s financial data.
One of the beneficial features commonly found in some of the best cloud ERP software for accounting is that your organization will be kept up-to-date with the latest legislative changes related to accounting, ensuring that your organization complies with these changes.
Customization, which is the ability to tailor something to suit your organization’s needs, is one feature commonly found in the best cloud ERP software for accounting. Customization arises from the fact that no two organizations are alike. Cloud ERP software for accounting allows your organization to customize accounting reports and track key metrics.
Accounting data on-site is vulnerable to cyber-attacks resulting in data loss. On-premise data is also vulnerable to environmental disasters such as flooding and fire. In some of the best cloud ERP software for accounting, your organization’s accounting data is automatically backed up, so there is no danger about losing important information.
Here are the three indicators that your organization needs a cloud ERP software for accounting:
- Growing Financial Transactions
Legacy software may have been enough for your organization in the past. If said old accounting software is, however, limiting your organization to scale to its current level, such as the growing digitalization of your organization, it is time to switch to cloud ERP accounting software.
- Disparity of Accounting Data
If members of your organization’s finance team are constantly confronted with disparate data spread across multiple spreadsheets and wasting their time reconciling the numbers or agreeing whose data is correct, it is time to use a cloud ERP accounting software.
- Staff Mobility
Many of today’s business transactions are not anymore conducted within the facilities of these organizations. Many business dealings such as meetings with potential clients and suppliers are done off-site. During these important meetings, it is important to be able to tap in real-time into your organization’s finances via a cloud ERP software for accounting.
Schedule a free consultation with one of our experts today and learn more about ERP software options for your business.