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There are many differences between ERP systems and standalone accounting software. However, despite these differences, there are still misconceptions that lead many to use the terms interchangeably. This is the first step in deciding on management software.

While there is some overlap, the main difference is the number of features provided by each solution. Accounting software provides financial control for your business through accounts payable, accounts receivable, general ledger with reporting, and payroll. ERP software provides several modules that include the accounting functions mentioned above, as well as applications such as supply chain management, inventory management, human resource management, and e-commerce.

Accounting software

Accounting software is more specific in features and types, Produce required financial reports such as Income and Balance Sheets including Accounts Receivable/Accounts, Journals and General Ledger. Due to this limited focus, accounting software cannot achieve the same level of integration as ERP accounting software.

ERP Software

Most ERP products offered today come with accounting software as an entry-level (office) package called an ERP accounting system. As your business grows and the need to automate more complex data recording and reporting processes increases, you can add process-specific components. This is how accounting software can become an ERP.

For example, a typical accounting package provides financial management, planning, and budgeting functions as a base package.

The same box can also be integrated into other business processes. Project and Supply Chain Management, Reporting and Analysis, and Human Resources Management.

Let's take a closer look at the differences between accounting software and ERP:

As the world becomes more complex, lead times are getting shorter, customer expectations for product personalization are increasing, and more data is being managed than ever before, software support for the operational efficiency of core business processes is critical. will be Companies also need the right skills to meet the dynamic demands and challenges of their particular industry. The terms accounting software and her ERP software are erroneously used interchangeably. In fact, accounting and financial reporting software is a subset of ERP systems. It's important to understand the difference.

ERP vs Accounting Software

The basic difference between the two terms is that accounting software often helps to cover areas like banking; liabilities, accounts receivable; financial reporting and some basic sales records. However, ERP software also includes the basic functions of accounting as well as some additional functions for managing logistics demand, supply chain, warehousing, inventory, e-commerce and contact management. ERP can be better defined as a fully integrated tool with an end-to-end business solution.In other words, accounting functions are a subset of ERP software.

❖ While the best free accounting software manages business accounts or how your money flows, ERP is business software that helps you track inventory management, tangible and intangible assets, invoicing, order fulfillment, order costs, and more. In accounting, you deal with the general ledger, accounts receivable and payable, payroll, expenses, and more. But Enterprise Resource Planners (ERPs) help manage unaddressed issues in accounting. 

❖ ERP and accounting software generally differ significantly in software cost of ownership. While accounting software is generally inexpensive, accounting software is easily affordable for small businesses. Even for medium to large companies, the cost of implementing and maintaining an ERP can be very high. 

❖ Another key difference is the human effort required to manage the software. And accounting software can be managed entirely by small business owners. Maintaining an ERP system requires a team of professionals to keep it running. Even with ERP software, the learning curve is often steep.

 ❖ Accounting software has limited or basic inventory tracking and web-based add-ons. On the other hand, ERP systems are flexible enough to free users from the constraints of accounting software. It also allows you to improve the accuracy and customer service of
your business. At the same time, ERP can help you reduce warehousing costs, inventory write-offs and labor costs. 

❖ ERP can help you plan the resources needed by your business, such as the number of raw materials required for the production process, and can also help manage highly complex production lines, but accounting software lacks such capabilities. While both are
important to your business in their own way, ERP is more flexible than accounting software, allowing you to manage different tasks more easily. It all depends on your business needs and the size of your business

Key ERP benefits of implementing such software:
1. Centralized IT costs:

Unify IT costs and increase efficiency instead of spending resources on multiple systems.

2. Overall Visibility:

Gain complete visibility into all critical processes in your organization by making data easily accessible.

3. Plan ahead and report:

Using the same ERP suite across all departments means your organization has a unified reporting system for every process.

4. Full customization:

Many ERP vendors offer multiple applications that can be implemented together based on business needs. Improve efficiency.

6. Reduce IT and training costs, time and effort:

A properly implemented ERP can significantly reduce or eliminate repetitive manual processes.

7. Customer Service:

By centralizing and simplifying customer information, your sales team can focus on building and nurturing customer relationships instead of managing spreadsheets.

8. Data security and quality:

One of the foremost necessary benefits of ERP system is data security. After all, data is at the heart of each ERP concept. 

A single repository of information helps improve the accuracy, consistency and security of enterprise data. 

ERP allows for greater integration of business operations into a single system, including aspects of inventory and warehouse management, customer relationship management, supply chain, and more. All of these aspects are currently not possible with stand-alone accounting solutions. It's time to start looking for an all-in-one ERP solution

Why Microsoft Dynamics 365 Business Central is a perfect fit for ERP for SMEs?

Dynamics 365 Business Central has important capabilities across various platforms. This comprehensive management solution integrates all aspects of enterprise management and implementation on one platform, seamlessly connecting mobile and desktop
devices.

Add-ons for Microsoft Dynamics 365 Business Central are now available to meet the specific needs of all types of companies and industries. It can be used in any operation, from production management to retail and service.

Microsoft Dynamics 365 is the perfect solution for small and medium businesses. The tools, functions, and features provided by the platform are intuitive and meet business needs. Small businesses get the perfect help to achieve their business goals.

If you're interested in learning more about the potential benefits an ERP system could bring to your business, feel free to contact us

Microsoft Dynamics 365 represents ensuring generation of business applications. The Dynamics 365 branch of ERP offers two solutions, Business Center and Finance and Supply Chain Management (Finance and Operations), formerly known as NAV and AX. Both are comprehensive end-to-end ERP solutions that address complex business and operational needs. However, there is still some confusion when it comes to choosing the right Dynamics 365 solution. We thought it appropriate to provide a general overview of the capabilities of both platforms.

Microsoft Dynamics 365 Business Central

Dynamics 365 Business Central (BC) is a complete overhaul of NAV. It has all the features of NAV, but now users can choose to host their ERP solution on-premises or in the cloud. BC is suitable for small to medium local and global businesses in the Americas, Europe and Asia. It is loaded with new features and a more user-friendly interface.

 Faster implementation, lower cost of ownership, rich features and functionality, and ease of use make it an excellent ERP choice for SMBs.

Valuable Features

Industry – Trade & Distribution, Manufacturing, Professional Services.

Manufacturing Capabilities – Premium license covers service management capabilities and manufacturing capabilities.

Reporting – Embedded Power BI for rich reporting along with internal reporting tools.

Scalability– Ideal for fast-growing Small and Medium Businesses (SMBs)

Deployment  – Cloud and on-premise

Mertis of D365 Business central

● Low Cost of Ownership

● Offers a Single Source of Truth

● ERP Meets CRM in One Platform

● Warehouse and Supply Chain Management

● Flexible and Easy to Scale

● Simple Project Management    

● Seamless Integrations  

● Data Security and Compliance

Microsoft Dynamics 365 Finance & supply chain Management

Microsoft Dynamics 365 Supply Chain Management (D365 SCM) is a supply chain solution designed to advance retail, manufacturing, and supply chain processes. This solution helps you optimize your production, logistics and sales processes, making your company more resilient to shocks. With superior CRM capabilities and customization options, Dynamics 365 gives you great control over your sales process, customer satisfaction, and increased productivity.

Valuable Features

Industry – Trade & Distribution, Manufacturing, Retail, Professional Services, Public Sector.

Manufacturing Capabilities – Highly advanced manufacturing functionalities; suggested for discrete, lean, and process manufacturing companies.

Reporting – Embedded Power BI for rich reporting along with internal reporting tools.  

Scalability –  Very suitable for large companies that have the potential to grow further.

Deployment – Cloud and On-premise

Merits of D365 Finance and Supply Chain Management

●  Applications

● Real-time analytics

● Scalability

● Predictability

● Automation

● Accessibility   

● Security

● Agility

● Lowered costs with increased productivity

Choose the Right ERP for your business

D365BC is generally considered better for SMEs (Small and Medium Businesses), while D365FSCM is better for “complex or larger” organizations. This is because the two solutions have found their natural place, as evidenced by the profiles of their respective installed bases, which matches this perception.

Actually, it doesn't matter the size of your company or the number of users (in fact, there is a large overlap in the size of companies using each product).

Why Partner with Great Innovus?

As one of the leading Microsoft Dynamics partners in India, our experts have a solid understanding of the differences between Dynamics products and how they work in different industries. By reviewing your organization's specific needs, we can help you select and implement a Microsoft Dynamics solution that will deliver impactful results and improve your bottom line.
 
We are here to enable our clients to take advantage of the latest technology for the greatest possible competitive advantage. We have the expertise to recommend the best options for modernizing your business – from managed, and cloud to hybrid combinations. Every business is unique, so let's discuss the options that work best for your business.
Still not sure which ERP solution is best for your specific requirements?
If you have additional questions and would like more information on which solution to choose, please contact our team.

Small and medium businesses (SMBs) fulfilling orders from customers on time and maintaining the market share is a significant area for technological adoption. Competing against large enterprises with the help of digital solutions has nullified the chances of disruptions and maximized better profitability. However, to do more and strategize better data-driven decisions, integrating ERP solutions in supply chain management (SCM) can help you to bring down costs, improves efficiency, ensures on-time delivery, and adds value to your business process. And there are quite a few challenges faced by SMBs that impact the SCM process; let's discuss to know about them further.

Inventory visibility issues create a major hindrance for SMBs; either there is an excess of the stock, which leads to locking of capital, or a shortage of stock which creates havoc in the supply chain. And handling customer expectations and demands become more complex to thrive in the competitive market. Manual inventory processing on excel becomes tedious and time-consuming, affecting the business's reputation; hence an efficient ERP software can help to take a real-time decision and prove visibility on end-to-end product traceability.

Small businesses allocate a periphery for the IT budget, which puts a constraint on optimizing SCM issues. The struggle to transition from disparate software solutions and applications put SMBs in a tough spot. The traditional supply chain system fails to predict demand forecasting or proper warehouse space utilization. Also, updating regulatory compliances and fluctuating customer demand is strenuous for SMBs. Hence, organizations investing in ERP systems will significantly increase efficiency and will have a better return on investment in the long term.

The relationship with suppliers is vital and can create potential conflicts if it is not efficiently managed. It is challenging to track billings, payments, and shipments without a transparent tracking system. The ERP solution can hugely improve the SCM by monitoring each feature from a centralized point of view. The software solution improves traceability for both parties. Thus, the SMBs can negotiate better and improve the accuracy of the delivered orders.

Benefits of having an ERP solution to manage your SCM

We have discussed the challenges of a fragmented supply chain and how it can slow down the business speed and improve product quality in the long run. So, a perfect balance of supply and demand, access to inventories, and the shipment cost are critical to ensure holistic growth in business processes. And this can be achieved with a sound ERP system that helps with better output delivery.

The USP of an ERP system is the complete visibility of the workflow. Financial visibility helps SMBs to understand business forecasts and allows them to make informed decisions. A consolidated view of each relevant business process streamlines the data and helps with accurate traceability.

The ERP software can easily be used for multiple purposes in an SMB setup. As SMBs are budget conscious, the ERP software is the best fit solution. A customizable dashboard can be implemented for various business purposes as and when required. So, the collaboration of ERP and SCM will take care of vendors and suppliers and optimize business processes.

The ERP solution automates demand planning and procurement of resources. A well-balanced project portfolio ensures retention of customers, manages the inventory level, and analyzes target customer behaviour and industry trends. It also helps to standardize the SCM's operational process by boosting the employees' productivity and enhancing the efficiency of SMBs.

In a supply chain that relies on stand-alone systems, tracking real-time data for projected goals is challenging. However, by implementing an ERP system with SCM, you will be able to find the necessary details to generate an in-detail report. The detailed report will highlight the business plan gap and help conduct a deeper assessment.

Finding the right ERP solution and implementing it in your business is not simple. It's not only about the technology but also the impact the new solution will have on all the areas of your business. An ERP solution that considers business performance, growth, and goals should be the perfect ERP for SMBs. And one such industry-leading cloud-based ERP solution is from Microsoft. Dynamics 365 Business Central is quite a popular and trusted ERP solution with rich functionalities designed to help SMBs accelerate business growth. MS Dynamics 365 Business Central is easily adaptable to Microsoft Cloud Services like Power BI, Office 365, and PowerApps and is available on cloud or on-premise.

Benefits of having MS Dynamics 365 Business Central for SCM

For SMBs to find ways to reduce business complexities and streamline various sales channels and warehouse locations, it is essential to have better cohesion and integration with SCM. It is imperative to keep digital solutions at the forefront to optimize operational data and maximize profitability. MS Dynamics 365 offers a robust and flexible solution to manage customer relationship management (CRM), finance and supply chain. It is an integrated platform that supports SCM functionalities and has proven capabilities to overcome supply chain disruptions and meet ever-changing consumer demand.

Analytics solutions & Insights

Disparate data is consolidated on a single system; hence data analysis becomes easy to maintain, and real-time critical data is available at various locations. Business Central helps SMBs to keep track of market trends and ensures a seamless sharing of information across departments. You can also track every stage of activities that are carried out in the supply chain.

Automated Inventory management

Insight into inventory management will help SMBs do away with manual handling of information. Business Central provides complete visibility to inventory dashboards and real-time updates and helps keep track of stock levels. Overall, it reduces expenses and creates accurate predictions on replenishment plans and inventory availability.

Fluctuating demand in Supply Chain

For SMBs, leveraging supply chain activities using Business Central during uncertain times promotes clarity and helps mitigate risk factors. It anticipates market fluctuations in supply and demand needs by addressing potential bottlenecks as well. It helps to manage the fluctuating demand from different geographical locations based on real-time insights and advanced computing.

A broad view of Warehouse & Logistics

With the help of Business Central, SMBs can get a holistic view of the warehouse to keep the margin high with minimal losses. Activities like invoice and purchase orders, tracking inventory county, and cross-docking are well-managed through Business Central solutions. It provides a robust warehouse foundation, replacing manual labour with an automated process.

Get started with Great Innovus

Microsoft Dynamics 365 Business Central is a powerful and user-friendly ERP platform for SMBs to control workflow and flexibly configure SCM into it. We at Great Innovus are passionate about taking your business challenges and resolving them by building an end-to-end ERP solution. Our team of experts is proficient at helping you achieve your goals.

 

Connect with us to know how Dynamics 365 Business Central can help your small or mid-sized business.