A good accounting system, and there are many being offered where some are more popular worldwide than others, is limited in its functionality. The top limitation is that it is disconnected to other functions in the business, like production, warehousing of raw materials and finished goods, sales and marketing, etc. This results in all forms being submitted to the Accounts department that makes all the accounting entries.


One way to look at the ERP is that it is exactly the reverse of the Accounting software. In an ERP, there is hardly any need to make any accounting entry by the Accounting department, and it is all the other departments (production, raw material and finished goods warehouse, sales and marketing, procurement, etc.) whose managers make decisions on computers, laptops, hand held devices, etc.; and the Accounting entries are automatically posted, after due approval from the Chief Accountant.


Another way to look at the ERP is that it automates the highlighting specific problems in the entire company, and enables the relevant manager to get it corrected. The CEO sees it all on his or her own laptop or handheld device. The accounting software is very limited in this area.


Yet another area to look at the ERP is that it enables the company or the business to grow fast, without adding to the complexity of the management system. Accounting software is not meant to do that.


And if the CEO or the business owner decides to have an ERP installed, the best decision he or she will make is talk to us.