Shortlist UK’s Best ERP For Accounting & Financial Management

How Is ERP Used For Accounting and Finance?

The use of ERP systems for accounting and finance encourages smarter financial management and control, running accounting tasks from one system. CFOs and Controllers link core processes like invoicing, cash flow management, payroll, VAT, and tax with other departments like sales, stock, and orders. 89% of ERP Software buyers say finance is the top reason to choose ERP.

ERP accounting systems provide features that support bookkeeping and financial management efforts. These features include:

• General Ledger
• Payables and Receivables
• Cash and Asset Tracking
• Budgeting and forecasting
• Reporting and analytics

In most cases, implementing ERP for accounting and finance has reduced payroll processing times by up to 80%, increased the speed of month-end reconciliation, and provided insights into business data through AI and machine learning tools.

Many firms turn to ERP for accounting tasks when they feel stuck, have outgrown their singular finance management system (like QuickBooks or Sage 50) or are spending too much time on manual tasks.

Top-Rated ERP Accounting and Finance Solutions

How CFOs and Controllers Benefit From ERP Accounting Systems

CFOs, Controllers, and finance teams are often the first to spot the need for ERP. Around 23% of ERP users come from finance and accounts, working closely with IT. As firms grow, tools like spreadsheets or basic apps can’t track money or risks well enough.

There are three key reasons finance departments push for ERP accounting systems:

1. The firm is growing, and leaders need a wider view of cash and revenue
2. Teams want live data to help grow markets or products
3. Teams work in silos, and data is hard to find and share

An ERP system links your financial data with sales, stock, and supply. It brings all key numbers into one place and gives all teams a single source of truth.

With an ERP for accounting, you can also stay in line with GAAP, IFRS, and HMRC rules. It helps with Making Tax Digital and automates VAT reporting. You stay audit-ready at all times, with logs and clear access rules.

Reports are faster and tied to real work, not just teams or budgets. Finance teams can track job costs, cash flow, and margins in real-time. This helps spot waste, cost spikes, or growth areas early.

Key ERP Accounting and Finance Features

General Ledger

The general ledger is the core of all financial reporting. It records every transaction, supports double-entry bookkeeping, and gives a real-time view of a company’s financial health. You can also close months and track audits with ease.

Accounts Payable (AP)

ERP accounting solutions automate the handling of supplier invoices, payment schedules, and approvals. AP helps manage bills, due dates, and vendor pay. It cuts errors, avoids late fees, and keeps your books clean.

Accounts Receivable (AR)

AR tracks what customers owe. It sends bills, checks payments, and helps collect cash on time.

Financial Reporting

ERP finance systems help create real-time reports like P&L, balance sheets, and cash flow. These reports are updated in real-time and offer drill-down options for deeper analysis.

Budgeting and Forecasting

Build and track team budgets with ease. You can also plan for the future with simple forecast tools and “what-if” checks.

Tax and VAT Management

This tool helps with tax rules and VAT. It supports UK laws like HMRC’s Making Tax Digital. ERP accounting systems help reduce errors and simplify submissions.

Cash Flow Management

See current and projected cash positions. This helps liquidity planning and ensures you can meet financial obligations.

Compliance and Audit Control

ERP systems log each change, track who did what, and limit user access. These steps help with UK GAAP, IFRS, and audits.

ERP Accounting Systems vs. Accounting Management Software: What’s the Difference?

The key difference between using ERP for accounting and accounting software is the scope across the business that the ERP application provides.

Most businesses start with an accounts package for payroll and expense management. But as they grow they soon find it hard to link siloed finance information with sales, production, marketing, supply chain, and returns.

For smaller organisations looking to keep the lights on, accounting software provides a quick-to-adopt and easy-to-use solution for balancing the books without unnecessary complexity.

The Limitations of Basic Accounting Systems

While accounting systems like QuickBooks are solid tools for basic accounting, they are restrictive as a business grows. Many small firms outgrow these tools when they add new teams, products, or markets.

One of the main issues is scaling. SMB accounting tools work well for one firm or team. But it lacks the tools to run multi-site, multi-unit, or global firms. As firms add online sales, new SKUs, or start selling internationally, these gaps become more pronounced.

They also have limited features in key areas like:

• Multi-currency use
• Stock and SKU tracking
• Cash flow forecasts
• Buying pattern reports
• Industry-specific tools (like job costing or service billing)
• Integrations with e-commerce platforms like Shopify and Amazon

As teams grow, finance staff end up using bolt-ons, spreadsheets, and manual work. This adds errors and slows down key tasks.

How to Migrate From Basic Accounting Tools to an ERP Accounting System

Implementing an ERP accounting system brings structure, scale, and real-time insight. However, this is a complex process and requires a dedicated project leader.

To increase the chances of successful migration, it’s best to find a customisable ERP, as out-of-the-box systems may need to be replaced as you continue to grow.

Before data migration and training, important decision-making steps need to be taken. These include budgeting, identifying requirements, finding the right ERP system with a focus on accounting, and aligning finance and operations teams. Once in place, there are four crucial steps to getting your financial data migration right:

1. Prepare and Clean Financial Data

Audit your existing data. Remove duplicates, fix errors, and archive outdated records. Decide how much historical data (e.g. 12–24 months) is needed in the new system.

2. Migrate Key Financial Records

Work with a specialist or use migration tools to transfer:

• Chart of accounts
• Customer and supplier records
• AP/AR balances
• Inventory and asset data
• Trial balances and open transactions

3. Configure Workflows and Reports

Set up processes for billing, purchasing, tax compliance, and cash flow tracking. Tailor dashboards for the finance team and senior leaders.

4. Train Teams and Go Live

Train users on the new ERP accounting system and run a soft launch to resolve early issues. Monitor workflows closely and switch fully once stable.

ERP Accounting FAQs

How Are AI, Automation, and Blockchain Impacting ERP Accounting?

Blockchain is a transformative ledger technology that will likely impact accounts in the coming years. Blockchain improves the security and reliability of transactions but still requires verification. As business becomes more automated, blockchains and digital assets will increasingly come to the fore to speed up transactions and increase security.

Experts have recently explained how CFOs will increasingly rely on “inhuman accountants”, combining ERP with generative and agentic AI to detect fraud and help auditors spot unusual transactions.

What Industries Benefit Most From Implementing ERP For Accounting?

Financial control impacts all businesses that import and export goods or have staff members on the books. But there are focused industries that benefit more from the capabilities of an ERP accounting system, like:

• Retail and e-commerce
• Manufacturing
• Wholesale distributors
• Construction
• Healthcare