The Confusion Between ERP and Accounting Software
Many Indian business owners ask: "We already use Tally — why would we need ERP?" It's a fair question. Both software types handle finances and GST. But they serve fundamentally different purposes.
Accounting software records financial transactions. ERP manages your entire business — and happens to include accounting as one of its many modules.
🔑 Key Insight: Accounting software tells you what happened financially. ERP tells you why it happened and what to do next — across every part of your business.
Key Differences: ERP vs Accounting Software
| Capability | ERP Software | Accounting Software (Tally etc.) |
|---|---|---|
| Inventory Management | ✅ Real-time tracking, low stock alerts | ❌ Not included / very basic |
| Sales Order Management | ✅ Complete order lifecycle | ❌ Not available |
| Purchase Management | ✅ PO, GRN, supplier management | ⚠️ Basic entry only |
| GST Billing | ✅ Auto with each invoice | ✅ Yes, manual setup |
| Customer Management (CRM) | ✅ Purchase history, credit limits | ❌ Not available |
| Mobile Access | ✅ Full mobile app | ❌ Desktop only typically |
| Multi-Branch Management | ✅ Centralized control | ⚠️ Separate licenses |
| Business Analytics | ✅ Real-time dashboards | ⚠️ Reports only |
| Barcode Billing | ✅ Built-in | ❌ Add-on required |
When Is Accounting Software Enough?
Accounting software like Tally is sufficient if:
- Your business is purely service-based with no inventory
- You have 1 location and a small team
- You mainly need GST returns and financial statements
- You don't manage customer credit or supplier relationships actively
When Do You Need ERP?
Your business needs ERP when you:
- Carry physical inventory that needs real-time tracking
- Have multiple staff members handling different roles
- Want to see profitability per product or per customer
- Are managing or planning multiple branches
- Want mobile access to your business data
- Need to control stock theft, billing errors, and credit risks
The Hidden Cost of Using the Wrong Software
Real Cost Analysis
A wholesale business using Tally spent 3 hours daily manually reconciling stock entries from a separate Excel file. After switching to MILAAN ERP, that time dropped to 0 — saving 90+ hours/month and eliminating ₹40,000/month in stock discrepancies.
Why MILAAN ERP Goes Beyond Accounting
MILAAN ERP includes full accounting — but also gives you:
- Real-time inventory management with barcode support
- Customer and supplier ledger management
- Sales analytics and profit reports by product
- Multi-branch operations from one dashboard
- Mobile access for owners and managers
Compare MILAAN ERP pricing — it costs less than most accounting software but does 10x more.
Ready to Move Beyond Basic Accounting?
Book a FREE MILAAN ERP demo and see the difference a complete ERP makes.