Once clearly distinctive, today the difference between SMB accounting software and enterprise resource planning (ERP) is blurring. As cloud-based, small business accounting apps grow in scope, more and more they include features that were once the exclusive domain of ERP systems. Take for example small business applications such as Xero, MYOB and QuickBooks – each with additional feature sets and capabilities far beyond the general ledger including integrated payroll, invoicing, payments, quotes, purchase orders, and inventory.  

Today, it is difficult to pinpoint where small business accounting software ends and ERP systems begin. Knowing the difference may seem trivial, but when comparing products, understanding the main technical differences is the key to making a more informed buying decision. 

In the cloud-first era the variety and volume of cloud accounting apps, allows businesses to continue to use accounting software even after they’ve outgrown the feature set of a typical small business accounting application. While it is possible, and popular, to string together a set of separate apps, it also adds layers of complexity, regardless of the added integration capabilities the software may have. In comparison, an ERP shaped around a company’s unique processes can provide a simple, seamless platform able to flex and grow alongside the business. 

In truth, at some point, small business accounting software and integrations with third-party apps can’t do the job anymore. That’s where ERP comes into play. 

Download our latest whitepaper to learn: 

  • The key differences between ERP and accounting software. 
  • The unique tipping points in SMB accounting software usage, which help indicate when the timing is right to step up to an ERP. 
  • How NZ-based skiwear company Mons Royale transitioned to NetSuite with immediate savings of $20,000. 


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