There is a huge difference between an enterprise resources planning system and normal accounting software. But today’s company somehow manages to close the gap. But still, to me, accounting software cannot be used a replacement of ERP system in the company. People have a lot of question about Tally ERP9 system. One of them is Tally accounting software? But before I give you guys an answer of this, I feel it necessary to make it clear what is ERP system and accounting software and the difference between them. So let’s start.
What is Accounting software?
Accounting software is a type of software that performs all kinds of account operation and also manages the accounts. To give you a vast explanation, I can say the software that performs account transaction within the module like accounts receivable, journal, general ledger, accounts payable, payroll etc. So in short accounting software keeps the record of every penny spend and earn by the company.
What is an ERP system?
Enterprise resource planning system is a software system that helps you to run a whole business. It includes office management software, accounting software, attendance software, inventory management system etc. All these modules come together and make one single software system that we call the enterprise resource planning system. In the ERP system, you have even mail and meeting modules; even you have the client list and employee profile module.
Though I have said that accounting software only keeps tracks of money in the business, in modern accounting software is more than accounting software. Many software companies intrigued some extra modules in accounting software so that it can perform to a close level of an ERP system.
Now come to the main point, the choice is very much depended on your requirement. Some may say that if you own a small company, you can use the accounting software. I beg to differ here. The size of the company does not have any connection with this decision. The type of business or action that is performed by your company has more effect on this decision.
Let me give you an example so that the whole matter becomes clears to you. Let us guess that you own a big restaurant with 25 staff or a big readymade garment shop, you can use accounting software here because your business is more or less on cash give or take. So you do not need a whole ERP system to run this business. A normal point of sale system will be more than enough for you. But if you run a small export and import company with even 10-15 people, you might need an ERP system, as this whole export and import business have whole bigger scenario than a restaurant or garment shop. So choose the intelligently and chose as per your requirement.
Is Tally ERP9 accounting software?
Now come to the main point. The answer to this question is No; Tally ERP9 is mainly an enterprise resource planning system. It has all kind of office management and accounting modules. The accounting software is a part of the Tally ERP9 system. You can say that accounting software is a part of the Tally ERP. So you can use the Tally ERP9 as substituted of account software. Tally software limited has accounting software too. The tally accounting software offers with the financial management, planning, and budgeting features as its basic package. But you add some more advanced software package such as project and supply chain management, reporting and analysis, and human resources management. For an additional package, you have to pay extra.
Which one I should pick Tally ERP9 or the Tally Accounting software?
This is a tricky question, as every day we see the increase the positive side of using ERP system over accounting software. But still accounting software with the advance package of Tally can be can be well substituted of ERP system. But still, it depends on the business structure of that certain company. I have seen many companies do not need a full version of the ERP system, they need more of an advance features accounting system. So first analyze your requirement and then move forward with the decision which one you need.
Even in this ERA of Technology, there is some company who thinks that they can run the business without the help of automation. They simply do not want to move forward. This type of people is very common in the subcontinent. They want to keep things as it was because they are used to it, but the truth you is can not overlook the benefit of ERP and accounting software. So, it’s only a matter of time when you are going introduce the automation in your company. The better, as the competitor of yours, will get the benefit of automation and they will leave you behind.