what is an erp system in accounting

An ERP (Enterprise Resource Planning) system is a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. ERP systems are complete, integrated platforms, either on-premises or in the cloud, managing all aspects of a production-based or distribution business. ERP systems encompass a wide range of business processes, including financials, procurement, supply chain management, inventory, manufacturing, maintenance, order management, project management, logistics, product lifecycle management, risk management, and human resources/human capital management. ERP systems can be integrated with accounting software, particularly accounts receivable automation software, to streamline payment processing, drive cash flow, save time and money, and more. ERP accounting software streamlines sales and inventory, detects process deficits, and boosts productivity. ERP systems are very sophisticated and require a company to commit considerable resources for planning, training, and implementing the system.