In July, WLP Group’s director Li Han spoke to Esther about Xero and automation in accounting. You can watch the entire podcast here!
One topic that came up was Xero’s ability to replace expensive and clunky ERPs.
What is an ERP?
ERP stands for Enterprise Resource Planning. This is like an all-in-one system for big companies. It does a lot more than accounting. It can manage inventory, sales, human resources, and more.
Think about it like Excel, but more complicated, and it keeps track of everything. It’s your all-in-one software. Just like how WLP Group is your all-in-one corporate services provider for everything from incorporation to accounting.
Similarities and difference between Xero and ERPs
Both Xero and ERPs help with money matters. They can create invoices, manage cash flow, and do other financial tasks. Some ERPs even have features that Xero has.
ERPs do a lot more. They can manage different parts of a business all in one place. Xero focuses` on accounting. ERPs are also usually more expensive and can be harder to use.
But Xero’s list of integrations has been growing. You can now add on functionalities as you go. It’s like WordPress in a lot of ways. You have the base software Xero which functions like WordPress. You can add integrations whenever you need new functionality. One example is taking photos of receipts. In WordPress, you can use plugins to add new functionalities. For an eCommerce store, plugins can add features like abandoned cart follow-up. This is why WordPress is the top IT solution and Xero is the top accounting solution.
Ultimately, it depends on whether there are the suitable Xero integrations. You don’t need an ERP if Xero has integrations that give you the functionality that you need. But if you are a small business with limited resources, Xero is definitely a good alternative.