Comparison of E-commerce Solution with Accounting Software & Enterprise Resource Planning (ERP)
Differences E-commerce Solution with Accounting Software such as Jurnal, Accurate, etc.
E-commerce solutions focus on helping you increase sales & improve collaboration with customers. The collaboration referred to here is a business ecosystem where you and your customers have a platform to be able to do business easily because of an integrated (and private) stock system and connect with all customers.
If you want to maintain better customer relations, use an e-commerce solution like Linkz. Accounting is only useful if you intentionally want to “separate” your customers from your business processes. With a sales application that is integrated with finance, you don't need to update sales and finance separately. For this reason, an e-commerce solution is more suitable for those of you who want to streamline business processes so that their business can run faster and in an organized manner.
Disadvantages of Manual Processes and Accounting Systems
Having a manual order process despite having an accounting system will cause several loopholes for fraud to occur in your business. For this reason, it is important for businesses to have an end-to-end solution that is simple and easy to use by employees, business owners to customers - making business processes easier:
Customers just need to place an order either through a public catalog or a private catalog (special prices for certain customers) >
Orders go to the app >
Employees/ Owners approve orders >
Warehouse Head receives & processes order details >
The order reaches the customer.
With 3 easy steps, your customers can place orders without having to wait for your sales/admin to receive orders. Pricing and ordering details cannot be changed by employees who do not have access - your business is safe from potential errors or fraud just by using an e-commerce solution application such as Linkz.
Having Accounting System and E-commerce Solution Simultaneously
It is highly recommended for businesses to separate sales (with an e-commerce solution) from the accounting function if your business needs to separate company finances for tax reporting.
Some businesses prefer to keep the accounting system as well as the details separate from their sales, for reasons of business confidentiality. This can be done by separating the details of the stock of goods and calculating the profits seen in the accounting system using an e-commerce solution.
Difference between E-commerce Solution and Enterprise Resource Planning (ERP)
An e-commerce solution like Linkz is a much simpler system and can do a lot of what a good Enterprise Resource Planning (ERP) can do, such as sales, inventory, accounts receivable.
However, for large-scale companies with more than 500 employees, using Enterprise Resource Planning (ERP) is indeed far more sufficient for a complex scope. If your business is still on an MSME scale, using ERP will only add unnecessary processes because you don't have much data.
Disadvantages of Enterprise Resource Planning for SMEs
In terms of cost, e-commerce solutions are much more cost-effective with a range of IDR 399,000 - 799,000 per month. The minimum ERP fee is IDR 100 million for a one-time purchase, then the license renewal is IDR 10 million every year. Many business people in Indonesia prefer to increase the number of employees compared to using ERP because the price is quite expensive.
Another problem is that ERP takes a long time to implement before it can be used (maybe 2-6 months depending on the complexity) to install, configure, and train your workers. Not only that, you have to hire a very good IT person just to maintain & program for your ERP to run well. A good IT workforce is hard to find and not cheap for SMEs.
Owning an SME business, of course, has a much simpler work system than a large company - simplifying work processes and streamlining resources by using business solutions will of course increase your sales.
However, you also have to be precise in choosing a solution that fits your business processes. If you are on an SME scale, using ERP can be too complicated and risk slowing down your business with a long input process. Meanwhile, accounting software only solves problems in the finances of the business, the sales & purchasing side to stock items that require other, more suitable solutions. For that, use an E-commerce Solution such as Linkz which is suitable for SME businesses, whether distribution, wholesale, or retail.