Main Differences Between Small Business Accounting Software and an ERP System
Small business accounting tools have evolved significantly. They now include features like invoicing, payroll, quotes, simple inventory, and even integrations with third-party applications. This makes it hard to distinguish where accounting software ends and ERP begins.
However, relying on multiple disconnected applications leads to several challenges:
Data not syncing properly
Multiple interfaces that slow work
Separate databases → inconsistent data
Limited capabilities for complex operations
Difficulties tracking multi-entity structures
Eventually, businesses outgrow accounting software, opening the door for ERP.
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