Many businesses run on a billing tool, a stock register and an accounting package, joined by exports and re-typing. Others use one integrated ERP. Both approaches can work; they differ in where the effort goes.
Two ways to run the back office
With separate tools, each one is chosen for its own job, and information moves between them by export, import or re-typing. With an integrated ERP, one set of records is shared, so a delivery becomes an invoice, the invoice updates stock and the accounts, and GST reports read the same entries.
Side by side
| Separate tools | Integrated ERP | |
|---|---|---|
| How data moves | Export, import or re-type between tools | Shared records; each document builds on the last |
| Reconciling | Stock, sales, accounts and GST checked against each other regularly | Fewer hand-offs to check, because entries come from the same documents |
| Choice of tools | Pick a specialist tool for each job | One vendor’s approach across the business |
| Logins and permissions | Managed separately in each tool | One set of users and roles |
| Changing later | Replace one tool at a time | A larger, single move |
When separate tools make sense
- A very small business where one person does everything.
- One function needs a specialist tool the ERP does not offer.
- Your accountant works in a particular package and you send them data periodically.
When an integrated ERP pays off
- Orders are delivered in parts and billed later, so documents must link.
- Stock is held in several places and must agree with the accounts.
- Several people across sales, stores and accounts work on the same customers.
- GST reconciliation and month-end take days of manual checking.
Common questions
Can I keep my accounting software and add an ERP?
Some businesses do, sending data from the ERP to their accounting package. It works, but it keeps a reconciliation step between the two systems. An integrated ERP posts the accounts from the same documents, which removes that step.