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The terms ERP systems and accounting software are typically used interchangeably as both platforms share similar features to manage business financial operations. However, they are not the same. Accounting software and ERP systems have some key differences that set them apart.

Let’s dive into them and find out which accounting software for business is better suited for your organization.

If you’re investing in cloud accounting software (which we encourage you to do), it’s imperative first to understand precisely what to look for in the right system for your business. Otherwise, you risk starting fresh with a new system, missing out on critical features and benefits, or paying for features you don’t need and won’t use.

Online ERP software is a game-changer. They can transform your organization and provide it with the foundational tools it needs to optimize operations and achieve exponential growth. But, implementations can be complex, even if this is not the first one your organization has carried out.

When financial statements are precise and up-to-date, they become almost invaluable. Conversely, inaccurate financial reporting can do serious damage. Even if inaccurate figures don’t destroy your business, they should still be prevented at all costs.

Although flawed data doesn’t always mean the end of a business, it still makes good sense to prevent it. After all, inaccurate financial reporting can result in huge setbacks that require significant amounts of time and resources to correct.

Of the many different financial statements professionals might deal with on any given day, one of critical importance is known as the contribution margin income statement. What makes this statement so important is its ability to show profit potential. It serves as a specialized document in financial analysis that strips down revenue into critical components and provides an at-a-glance view of a company’s variable and fixed costs relative to its sales. 

We’ve tailored this guide for finance professionals hoping to deepen their understanding of this tool and leverage its benefits for more informed decision-making.