Quick Tip: Accounting Software and ERP Systems

Accounting software & ERP - Why your accounting software, alone, does not meet your manufacturing needs  

Accounting software provides the tools to manage the financial aspects of your organization. This includes accounts receivable, accounts payable, payroll, profits, and losses. However, there are some key differences between an ERP system and your accounting system. 

"Accounting" is loosely used to refer to the financial aspect of your business operations. Accounting software is just one module in some ERP systems.  An ERP system can include all the basic accounting software features and more. ERP stands for Enterprise Resource Planning and is a system that monitors everything from the business’ financials to the tracking of tangible and intangible assets, such as: 

• Human resources

• Materials

• Working hours

• Product life cycles

• Customer relations.

These variables have an impact on your company’s finances, therefore, they are essential to your accounting. Outside of financial management, planning, and budgeting, ERP systems can provide integrations with your other business operations, such as quoting, work orders, sales orders, and purchasing. It can also provide analysis features and give insight analytics for continuous improvement.

In short, an accounting software package shows you only the bottom line whereas an ERP system can show you how you reached the bottom line and which areas of your business operations are affecting costs, profits, losses, etc. 

In MIE Trak Pro, you have instant access to your business information from anywhere, if you select our cloud-based option; login to check account receivables, payables, cash receipts, and more when you are away from the shop. Also, there is no need for double entry since the data goes straight from MIE Trak Pro right into MIE Trak Pro’s full featured accounting system or into other integrated accounting packages, like QuickBooks.