Modular Accounting Systems vs ERP Systems

Growing companies that find they are straight-jacketed by their current accounting systems, typically are faced with the difficult decision of upgrading. They can choose to implement either an all encompassing system or bolting on smaller applications to add capabilities to what they already have.

The first approach, typically an ERP (Enterprise Resource Planning) system, deals with every aspect of business: from controlling marketing campaigns and sales reps, order collection, product warehousing and distribution, payroll and HR, workflow, reporting, financials and more. ERP systems are excellent but be prepared for long and costly implementation projects.

The second method: adding functionality to a core accounting system, is usually much less stressful and costly to implement. The pitfalls may include: duplication of data (such as customer records) which may be overcome with newer systems designed with seamless links. In many cases, the modular approach ends up a better solution as the individual modules are purpose built with more capabilities than ERP systems.

Which approach is best? Firstly you must list and prioritise your requirements and note which are not adequately achieved by your current solution. The modular approach is only ever a viable option if you are relatively happy with your core accounting system and there are a range of available bolt on applications (to satisfy the missing needs) that link seamlessly with it.

In evaluating both options include all costs including additional hardware and system software costs, data conversion, configuration, testing, training and on-going support and maintenance costs.

The selection process is complex and often risky especially in recessionary times like today. You may choose to seek the advice of a Business Consultant with deep knowledge of a number of popular Modular and ERP Business Accounting Systems.

For more information, please contact: Axsapt