ERP stands for Enterprise Resource Planning system while CRM stands for Customer Relationship Management. Both are business applications that serve different purposes within an organisation. ERP is used to manage & automate core accounting functions such as book keeping, accounting, tax filing, inventory management, & financial reports whereas CRM is used to streamline sales operation by efficiently managing lead & customers.
ERP is used by businesses to record their daily business transactions in a systematic & chronological manner. This application simplifies the accounting process by automatically generating following financial reports based on recorded financial transactions -
- GST Reports & other Financial Reports
In simple words, the accounting staff's only role is to enter the day-to-day business transactions based on which all the required financial reports are prepared in no time. It eliminates human error, reduces manual effort, saves time & cost of employee multiple accounting personnel and improves accuracy in financial management. It also made the GST compliance & tax filing process much easier than traditional methods of accounting.
Key Functions of an ERP System include:
- Invoice Generation
- Inventory Management
- Quotation Management
- Accounting and Financial Reporting
- Tax Management and GST Filing
- Purchase and Sales Management
On the other hand, CRM is a pre & post sales management software. It is used by the sales team of an organisation to drive its sales & income. Its main focus is managing customer interactions & handling leads & customers efficiently to enhance conversion rate.
Key Functions of a CRM System include:
- Lead Management
- Customer Management
- Task Automation
- Reminders & Notification
- Sales Pipeline Tracking
- Marketing Campaign Management
- Customer Support and Service Management
Which Software ERP or CRM does my business adopt first?
It totally depends on your operational challenges and your current business needs .
If your sales operation is messy and unorganised and your sales team is struggling hard to manage leads then switch to CRM to manage your prospects and clients data systematically and streamline your sales operation.
On the other hand, if your business is handling a large volume of daily transactions and it's becoming tougher to manage the financial records manually and it's prone to errors , its advisable to adopt ERP without any delay.
Which is easier to use & implement , ERP or CRM?
CRM is easier to use as compared to ERP. As ERP is more complex as it incorporates multiple business operations (inventory management, cost management, taxation, financial reporting) under one platform, it needs proper training to operate it.
Which is cheaper, ERP or CRM?
CRM is cheaper as compared to ERP. Since CRM covers lesser features, low maintenance cost, easy training as compared to ERP. This makes it less costly.
Do I need a CRM if I already have an ERP?
CRM & ERP are two different applications. It has different uses. Whether you need ERP depends on your business operations. But as per my experience, today every business whether it be small or large uses financial management software either standalone accounting software or full fledged ERP to manage its daily financial activities.
Can a business use both ERP and CRM systems?
Yes, a business can use both the software based on their business needs and affordability.
