ERP vs Accounting Software: When to Upgrade
ERP vs accounting software like QuickBooks, Xero or Tally: what each does, the signs you have outgrown accounting software, and how to move to ERP safely.
Most growing businesses start with accounting software such as QuickBooks, Xero or Tally. At some point it stops being enough. Here is how to tell.
What accounting software does
Accounting software records the financial side of the business:
- Invoices and bills
- Bank reconciliation
- Taxes
- Financial reports
It does this well. But it sees the business only through money.
What an ERP adds
An ERP runs operations as well as finance:
- Inventory across warehouses with real-time stock
- Purchasing linked to stock levels
- Manufacturing with BOMs and work orders
- CRM, projects, HR and eCommerce
- Accounting that is updated automatically by all of these
With an ERP, a delivery updates stock and cost, and an invoice updates receivables, without anyone re-typing.
Signs you have outgrown accounting software
- Inventory lives in spreadsheets
- Month-end takes more than a week
- Orders are typed into several systems
- You cannot see margin by product or customer
- Several add-on apps are glued together with Zapier
- Multiple companies or currencies are hard to manage
Read signs you need an ERP for the full list.
Cost comparison
Accounting software is cheap per user. An ERP costs more to set up, but replaces several tools and a lot of manual work. Compare total cost, not licence price. Our ERP total cost of ownership guide explains how.
Open-source options
Odoo Community and ERPNext are open-source ERPs with no licence fee, which makes the step from accounting software smaller. See our free ERP software guide.
Moving safely
- Choose a go-live date at the start of a month or quarter.
- Migrate customers, vendors, products and open balances.
- Run the old system read-only for reference.
- Reconcile opening balances with your accountant.
We have migration guides for QuickBooks to Odoo, Xero to Odoo and Tally to Odoo.
Frequently asked questions
Is QuickBooks an ERP?
No. QuickBooks is accounting software. It covers invoicing, bills, banking and reports, but not full inventory, manufacturing, or multi-department operations.
Can I keep my accounting software and add an ERP?
It is possible, but usually the ERP replaces the accounting software, so there is one set of books and no syncing.
Written by
ERP Builders Team · ERP consultants and engineers
Articles written and reviewed by the ERP Builders delivery team — functional consultants, solution architects and developers who implement, integrate and support ERP systems.
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Next step
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