In recent years, there has been a sea change in the business management software. Enterprise Resource Planning (ERP) has successfully replaced other accounting software due to its multi-specialty features. These days, many tyre companies look forward to implementing ERP systems. ERP is an all-encompassing system that deals with cost fluctuations, inventory management, stock management, finance management, and productivity enhancements.
Enterprise resource planning software goes beyond simple accounting and can help companies predict future losses or profits, changing market trends, upcoming opportunities, ways to increase profit margins, lowering cost of production, improving the quality of finished product, and identifying new markets.
Here are a few reasons why ERP solution is better than an accounting software.
ERP Performs multiple functions
Most of the accounting software packages only look after individual business functions related to accounts whereas an ERP package handles a diverse array of functions within a business. It covers all the possible aspects of small to large business organizations and allows the information to flow from one department to another in no time. It also produces consolidated results which reflect the correct status of the entire business organization.
Accounting software deal individually with accounting operations such as payroll, accounts receivable, accounts payable, and trial balances. Some common modules bundled with accounting software include billing, sales order, purchase order, general ledger, timesheet, expense, and electronic payment. However, ERP handles tangible and intangible assets, materials, human resources, and financial resources. ERP amalgamates all the facets of operations under one roof to make the management process efficient, effective, and less cumbersome. ERP software covers a range of functions, most of which are not integrated into an accounting software. ERP also manages human work hours, product life cycles, performance units, and customer relations.
ERP software is easily customisable as per the requirements or business workflows and rules. There is even specialized ERP software available depending on the type of business and its requirements. Especially, for an industry as complex as the tyre industry, it is extremely important to have an ERP system to cover and streamline all business operations to the extent possible.
Managing accounting software requires expertise in the field of commerce. The process is quite troublesome and time taking as well. On the contrary, implementing an ERP system can save the businesses from such troubles. The ERP software can be easily mastered with a training of few days. There are also some amazing benefits of using an ERP software such as executives can get a holistic view of business operations at any time while the staff can get the information they need to do their jobs more effectively.