5 Best ERP Accounting Software For Growing Businesses

If you are looking to upgrade your accounting tools, the most important thing to figure out is whether to go with a standalone or an ERP accounting software. ERP and accounting systems are similar in several aspects but also have distinct features that can help your company in different ways.

What are the core differences between the two options and which solution is best suited for a growing business? Let’s dive in.

ERP And Accounting Software: What Are The Differences?

1. What’s an ERP for accounting management?

The ERP - or Enterprise Resource Planning system, manages and automates key operations, such as supply chain, human resources, marketing, sales, or finance. By consolidating separate data and systems into a single source of truth, the system helps companies optimise processes at all levels. 

Most ERP systems have core accounting management features. When your company expands, it’s necessary to automate more procedures, such as data recording and reporting. All manual operations can be streamlined and automated using an ERP accounting system, which reduces errors and saves time switching between platforms.

Learn more: A Complete Guide To ERP Core Modules.

2. What’s a standalone accounting software?

A standalone accounting software is designed to focus on your business finances and handling tasks like bookkeeping, invoicing, payroll, or financial reporting. Most software concentrates on accounts payable and receivable data. QuickBooks, for example, is a stand-alone accounting software created to automate and simplify routine financial procedures of small businesses.

3. Core differences between ERP and accounting software

The scope of features

This is the key distinction. Think of an ERP like assembling Lego blocks (specific business functions) to build a Lego house (the entire business). ERP accounting systems provide a wide range of tools to manage various business processes beyond accounting management. On the other hand, a standalone accounting system represents a single Lego block, primarily developed for financial administration tasks.

User adoption and learning curve

A standalone accounting solution can be more accessible, especially for smaller companies or those with tighter budgets. When compared to ERP systems, they typically require fewer steps to set up and operate. Due to the scope of features, ERP accounting software requires more extensive user training and support. However, thanks to the innovation of SaaS or cloud-based solutions, ERP accounting solutions are now easier to implement for businesses of all sizes.

Data update and integration

ERP accounting software is a great option for creating a single source of truth and integrating data from multiple company activities. This facilitates real-time insights and well-informed decisions. A standalone solution handles financial data, but it often lacks integration with other systems, making it harder for owners to get a complete picture of their business.

Customisation and scalability

ERP accounting solutions are more customisable and scalable, meeting various industry standards and business procedures. With standalone accounting software, it could be more difficult to modify the system and adapt to evolving company needs.

Top 5 ERP Accounting For Growing Businesses

Before diving into the sea of ERP vendors, it’s critical to plan and prepare for a selection strategy. Learn more in our 3-Step Roadmap For ERP Vendor Selection.

1. Odoo Accounting Software

The Odoo Accounting module is integrated within an open-source and cloud-based Odoo ERP system - a great option for businesses with increasing needs. It is developed especially to help your financial processes run more smoothly. Odoo Accounting provides an extensive feature set including accounting automation, AI invoicing, smart bank reconciliation, real-time performance analysis, and a lot more. They aim to help streamline your accounting chores, increase productivity, and provide insightful financial data, regardless of the size of your company. 

Odoo is constantly considering what's best for its clients. Odoo 16 and later users in Australia can take advantage of localised capabilities in the Accounting app that smoothly align with the Australian Taxation Office (ATO). This feature helps your business fill the gaps between your Odoo system and Australian legal requirements.

2. MS Dynamics Accounting

Designed to benefit growing enterprises, Microsoft Dynamics 365 provides powerful accounting management features. It offers a robust suite of products, which includes Dynamics 365 Finance, Supply Chain Management and Dynamics 365 Business Central, making it an excellent tool for managing financial activities. By integrating accounting with other key functions such as sales and inventory, Dynamics 365 allows businesses to enhance financial visibility and simplify operations as they grow.

3. Sage Intacct

Sage Intacct is a cloud-based accounting solution built expressly to support business growth. Intacct provides a complete financial management solution by integrating accounting, payroll, HR, analytics, and planning. For companies seeking to optimise their financial operations, it's a great option considering its capacity to simplify procedures, offer real-time data, and grow with the company.

4. MYOB ERP

MYOB ERP provides a solid foundation that helps businesses thrive. It offers a complete solution for growing operations by integrating financial administration, stock control, sales, and customer relationship management. With its intuitive design and adaptable features, you can increase productivity and streamline procedures - all of which contribute to growth and profitability.

5. SAP Accounting Software

Powerful ERP accounting software like SAP S/4HANA is developed especially to help businesses expand and scale. Businesses can quickly make great decisions because of the real-time insights provided by its in-memory computing capabilities. SAP S/4HANA offers a robust financial management module, predictive analytics, and advanced analytics. These features enable businesses to grow, simplify operations, and optimise their financial operations.

How Does ERP Help With Accounting In Growing Businesses

1. Scalability and flexibility

Growing companies need systems that can adapt to their evolving needs. Scalability is an advantage of ERP accounting software that supports your growth by enabling you to add more users and features as your business expands. Furthermore, these systems can handle higher transaction volumes and data complexity without losing business performance.

2. A unified system for financial operations

With fully integrated ERP accounting features, you can manage every aspect of a growing business from the finance and accounting departments to the operation of other departments. 45% of professionals said they plan to automate time-consuming and repetitive accounting operations, such as data entry (Sage, 2021). A single ERP system can address the problem better than a standalone software. It can be proved by eliminating the need to cross-reference and reenter the same data into various systems and spreadsheets.

3. Real-time financial reporting across departments

According to Panorama report (2023), 65.9% of businesses reported that real-time data is one of the benefits derived from ERP implementation. With access to up-to-the-minute data, you can plan and budget for the future, make quick and precise decisions, and stay adaptable to market changes. Moreover, the integrated view, shared across all teams, enhances decision-making throughout the entire organisation.

4. Improved productivity and collaboration

In the aforementioned study, 74.3% of respondents claimed that productivity and efficiency were the most frequently mentioned advantages of ERP systems. The ERP accounting software not only lowers your expenses but also simplifies accounts payable and receivable, addressing cash flow and cash management problems. Furthermore, your teams will have more time to focus on other strategic tasks, as they won’t need to spend nearly half of their working hours entering data.

5. Stakeholders management

Cross-function collaboration is important for growing businesses. Every member from different departments is connected, which enhances communication and makes teamwork simple. Thanks to real-time data access, ERP accounting software enables more cost-effective workflows and supports cross-functional initiatives.

Moreover, following Panorama’s study, 76,2% of respondents realised better supplier interactions after confirming that the ERP project met their ROI expectations. You could already have a supplier management routine in place. However, when your business expands, ERP accounting software allows you to automate and plan payments, as well as deliver quotes and repeat orders efficiently. With an instant view of invoice audit trails, the audit process is simpler because accountants can retrieve historical invoices and supplier details in seconds.

7 Key ERP Accounting Features

ERP accounting software can have a wide range of functions, from marketing and sales to inventory, supply chain, and human resources management. However, for Accounting particularly, they usually have the following features:

• Automated accounting transactions: This feature describes how ERP accounting software carries out particular financial operations and enters them into the accounting ledger without human support. Automation increases the efficiency of financial operations, reduces human risk, and streamlines financial processes.
• Finance analytics & report: These capabilities are essential to enable finance professionals to exploit insightful information from your organisational financial data. They offer capabilities that help your team with data analysis, visualisation, and decision-making in addition to standard data entry and transaction processing.
• Security protocols & audit trails: An audit trail is a chronological recording of all actions and modifications made to financial data inside an ERP accounting software. It serves as a digital paper trail, recording details on who made the change, what was changed, when it happened, and why.
• Workflow automation: In ERP systems, workflow automation refers to the use of technology to plan, coordinate, and expedite a sequence of tasks, or approvals throughout your business process. Workflow automation is essential to standardise and improve your financial management process. This offers better productivity, lower error rates, and improved compliance.
• Multi-currency assistance: Multi-currency support is the ability of ERP systems to manage accounting and financial transactions in various currencies simultaneously. If you engage in global trade or conduct business on a global scale, this function is notably crucial.
• Real-time financial management: Real-time financial management is the continuous and ongoing tracking of your business’s financial performance, transactions, and KPIs within ERP. It depends on a real-time stream of financial data and updates that give your team quick insights into many facets of the financial situation.
• Compliance management: Different industries and locations have different financial legislation and compliance needs. Several ERP accounting software have localisation features for each country, thereby, helping your business comply with rules. For instance, Odoo recently offered users a new localised feature on their Accounting app. It bridges the gap between Odoo and legal requirements and complies with the Australian Taxation Office (ATO) with ease. This feature covers Peppol Integration, Standardised Taxation Formats, New Stock Valuation Configurations, and more.

Before you go

We hope that this article has helped you to distinctively understand the difference between ERP accounting software and a standalone system. If you happen to need consultation on how modern ERP systems match your current business, leave us a note!

ERP vs Accounting Software - Frequently Asked Questions

1. Can I start with accounting software and move to an ERP later?

Yes, a lot of companies begin by controlling their basic finances with stand-alone accounting tools. Making the switch to an ERP system gives your company the features and integration it needs when expanding and becoming more complex.

2.  What is a cloud ERP for accounting and finance?

A cloud-based ERP for accounting is a solution that allows you to manage financial operations and other activities via the internet - or the cloud. This solution is developed to avoid the challenges of on-premises systems, enabling data access anywhere and anytime whenever you have an internet connection.

3. What are the best accounting ERPs for Australian businesses?

In Australia, MYOB, Odoo Accounting, and NetSuite are among the widely used ERP accounting software. These platforms provide localised features like GST compliance and connection with regional banking systems that are specifically designed to meet the demands of Australian businesses.

References:

• Panorama Consulting Group (2023). The 2023 ERP Report.