As businesses grow, they often face the challenge of finding the right financial management software.
The key differences between these solutions and help you determine which one is right for your business.
Cloud Enterprise Resource Planning (ERP) software is an integrated suite of many applications with many different functions. These applications manage the core business processes such as financials, accounting, expenses, reports, team management and appraisals, human resources, procurement, supply chain management, and everything in-between! Cloud ERPs are designed to give a business a comprehensive and centralised view of the entire company's operations in real-time and accessible from anywhere.
Cloud ERPs often have powerful data analysis tools. They can give deep and analytical insights into business operations, enabling automation of many processes, and helping to reduce manual data entry errors. However, it requires multiple departments to chuck in their resource as ERPs generally span across an entire business, plus a hefty amount of in-house or “on-tap” technical expertise and support to implement and keep running. So usually ERPs (cloud-based and on-premise) tend to be used by larger enterprises with more complex operations (and budgets!).
Cloud accounting software is a financial management solution that focuses primarily on managing accounting and finance related tasks; invoicing, accounts payable; accounts receivable, report scheduling and real-time management reporting. Unlike a cloud ERP, most cloud accounting software is designed to be simpler, quicker, and easier to use - far better suited for smaller and mid-sized businesses; ones that are looking to take control of their financials as they scale.
Cloud accounting software is also more cost-effective compared to traditional accounting software, as there is no hardware costs or “office footprint” involved with a software implementation.
The cloud provides a single source of truth for all the company's data. No mixed up file versions or delays in getting hold of the right data. Cloud ERPs and accounting software give everyone at the company access to the same data, providing a central location for all financial data, reducing the likelihood of errors and making it easier to reconcile and collaborate across departments and teams.
Cloud accounting software is often simpler to use and quicker to implement compared to cloud ERP. This makes it a more accessible option for businesses with 10s employees rather than 100s and the resources to implement and maintain a complex cloud ERP system.
When choosing between cloud ERP and cloud accounting, to consider the specific needs of your own individual and business situation. Here are some questions to ponder over when looking for either:
What are the main pain points that you need to address with financial management software?
How complex are your operations?
Do you require advanced functionality, such as supply chain management or customer relationship management?
What is your budget for financial management software?
Do you have the technical expertise to implement and maintain a cloud ERP system?
If you have a complex business that requires deep insights into your operations, a cloud ERP system may be the right choice. However, if you need a simpler, easier to use financial management solution that is easy for your team to adopt, cloud accounting may be the better option as it is designed with UI in mind and to allow even non-finance staff to be able to use.
It’s worth noting that cloud accounting software can be integrated with a cloud ERP system at a later date, as a business scales and requires more advanced functionality. This means that businesses can start with cloud accounting and upgrade to cloud ERP as they grow.
In summary, both cloud ERP and cloud accounting have their advantages and disadvantages. Cloud ERP is a powerful solution that provides deep insights into business operations and can automate many business operations. Cloud ERP and cloud accounting software are both cloud-based systems that help businesses manage their financial operations. However, there are some fundamental differences between the two.
On the other hand, cloud accounting software is a specialised application that can simplify your accounting processes such as invoice automation. Streamline processing and payment of invoices, minimise human error and speed up your payment cycle. So you can free up time and resources for more value-adding activities.
When it comes to cloud accounting, bluQube offers a top-notch solution. Our cloud-based software can help you manage your accounting processes with ease. By using bluQube, you can have real-time access to your financial data, collaborate with your team members, and stay on top of your accounts from anywhere. Plus, with bluQube's reporting tools, you can easily generate the reports you need to make informed business decisions.
If you're not looking for a complete rebuild of all your business process and just want your accounting system to be able to handle multiple entities, complex reporting, and other advanced features, bluQube has got you covered. With multi-entity accounting capabilities make it easy for you to manage multiple financial structures and reports within a single system.
Cloud accounting software is also scalable. As the business grows, easily add new users, entities, and features on the fly. And if you decide to upgrade to a cloud ERP solution in the future, you can rest assured that bluQube's interoperable accounting system can be seamlessly integrated with any new ERP system.
To see how bluQube's cloud accounting software has helped other businesses, check out their case studies. You'll see firsthand how bluQube has helped businesses like yours streamline their accounting processes, reduce costs, and improve their financial performance.
Whether you choose to go with a cloud ERP or a cloud accounting solution, make sure you carefully evaluate your options and choose the one that best fits your individual business needs and quirks.
If you’d like to get some more advice on which is right for you, contact us for a free demo!
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