P U R P L E F I N A N C E B L O G
Accounting software vs. ERP system
Why a change can make sense
PURPLE FINANCE BLOG
Accounting software vs. ERP system
Why a change can make sense
July 2025 | Finance & Accounting | ERP
Many customers ask us the question: Why should we as an accounting department switch to an ERP system when we are completely satisfied with our usual accounting software?
We would like to shed some light on this emotionally charged topic with a few facts.
Aren't specialised accounting systems simply ‘better’?
Yes, specialised software should be superior to ‘general’ software in its area of expertise. Odoo is an ERP software that is used worldwide and is not exclusively focussed on German accounting.
Although there are special localisations for Germany, it cannot compete with software that was developed exclusively for German accounting. Nevertheless, Odoo offers extensive functions that automate many processes and make accounting more efficient.
What distinguishes an ERP from accounting software?
The main difference lies in the integration of different business areas. Odoo offers numerous apps that link accounting with other business processes. Here are the five most important ones:
1. Purchase
Order processes are directly linked to accounting.
Account and tax determination can be automated so that incoming invoices only need to be validated.
An approval process can already be integrated into the order.
2. Sales
Customer orders and invoices are part of an integrated process.
Accounting must primarily monitor tax configurations.
Tax validation can be automated.
3. Warehousing
Traditional accounting software does not have automatic stock accounting.
Many companies only record inventory values once a year.
A precise calculation of the gross margin for the month-end closing is possible at any time in an ERP system.
4. Manufacturing
Production costs, cost centre relief and calculations are essential components of financial control.
Traditional accounting systems do not cover these processes.
The valuation of work in progress can be automated.
5. Projects
Service companies benefit from the automatic billing of working hours.
Precise evaluation of work in progress is possible without manual processes.
Controlling and project accounting are directly linked to accounting.
The changing role of the accountant
In an ERP system, the role of the accountant changes fundamentally.
Instead of posting invoices, the focus is on validating data, tax determination and maintaining master data.
Accounting becomes an integral part of corporate controlling.
The close integration with other departments enables more efficient financial management.
Many accountants find this change challenging, but it opens up enormous potential for efficiency and enables a more strategic role within the company.
Risk management and transparency
The interlinking of the business areas in the ERP system increases the quality of accounting enormously.
In Odoo, booking lines can be filtered according to products, countries, tax rates and other criteria.
Standalone systems such as DATEV often lack such detailed information.
Without interfaces or extensive additional accounts, in-depth tax validations are hardly possible.
Examples of tax validations in Odoo:
Audit of intra-Community deliveries and services
Analysing sales per product without having to set up countless accounts
Automatic tax determination based on master data
The wealth of information available in an ERP system directly in accounting means that key company figures can be analysed much more precisely and quickly.
The role of tax advisors
In Germany, tax consultants are often the biggest obstacle to ERP accounting.
Companies are almost inevitably forced to use DATEV instead of modern, integrated solutions.
In other countries, it has long been standard practice for companies to keep their own accounts and for tax consultants to support them in the ERP system.
Direct accounting in Odoo saves costs and reduces sources of error.
Of course, we at syscoon offer a very powerful DATEV interface to export data if required. However, we recommend companies with their own accounting department:
Handle accounting directly in Odoo.
Use the GDPdU-compliant export for the tax consultant.
Work together with a tax consultant who supports Odoo - for example doo.finance.
Conclusion
ERP systems such as Odoo offer in-depth integration and automation that traditional accounting software cannot provide.
The role of the accountant is changing from manual recording to tax and financial control.
The integration of accounting, purchasing, warehousing, production and projects leads to a higher quality of financial data.
Companies that embrace this change will benefit from significantly more efficient and transparent financial accounting.