Wondering what sets ERP (Enterprise Resource Planning) apart from PSA (Professional Services Automation) software?
Here’s a simple breakdown:
- ERP software helps manage core business tasks—like finances, inventory, and HR—across your entire company.
- PSA software specifically handles projects, resource scheduling, time tracking, and billing for professional service companies.
In this guide, you’ll clearly see how to choose the best system for your organization. We’ll cover:
- Exactly what ERP and PSA are
- Key differences between the two
- Which system fits best for your needs
Let’s dive in.
What is ERP software?
ERP software helps companies manage all their major business operations—like finances, inventory, human resources, and purchasing—in one place.
With ERP, you can:
- Keep track of your money: revenue, expenses, and financial reporting.
- Manage your inventory and automate restocking.
- Streamline purchasing from suppliers.
- Handle payroll and employee management from start to finish.
Typical setup time: About 6–18 months (it’s comprehensive, so it takes time!).
Examples: of ERPs include: SAP, Oracle, Microsoft Dynamics 365, NetSuite
What is PSA software?
PSA software is built for companies that provide professional services—like consulting, marketing, IT services, or legal work. It helps you plan projects, manage resources, track time and expenses, and automate your billing.
With PSA, you can:
- Plan projects and clearly assign tasks and deadlines.
- Schedule employees based on their skills and availability.
- Easily track work hours and expenses from anywhere.
- Automate invoices based on the work your team completes.
- See your project profitability in real time.
Typical setup time: About 3–6 months (faster and simpler to get up and running!).
Examples of PSA tools include: Scoro, Kantata, Certinia, BigTime, Deltek
Quick comparison: ERP vs. PSA
| Aspect | ERP | PSA |
|---|---|---|
| Main Focus | Whole-company operations (like finance, HR, inventory) | Project-based tasks (like resource scheduling, client billing, time tracking). |
| Billing & Finances | Broad accounting features for all finances | Billing features specific to projects (like invoicing per hour or milestone). |
| Resource Management | General planning of employees or resources | Detailed scheduling based on employee skills and availability. |
| Time & Expenses | Basic, less intuitive tracking | Easy-to-use, mobile-friendly time and expense tracking. |
| Implementation Speed | Long (6–18 months), more complex, higher cost | Quick (3–6 months), easier setup, lower upfront costs |
| Scalability | Great for large, complex organizations | Ideal for growing service-based teams |
| AI & Automation | General automation for financial processes | Targeted automation (like matching staff to projects, automating timesheets) |
| Integrations | Can integrate with other tools but often complex | Simple integrations with accounting, CRM, and collaboration tools |
| Ease of Use & Customization | Highly customizable, but complex interface | Easier to use, with simpler customization options |
| Industry Suitability | Manufacturing, retail, large diversified businesses | Consulting, creative agencies, IT services, law firms |
What should you choose?
Choose an ERP if you:
- Deal primarily with physical products or large inventory
- Need company-wide visibility across multiple departments
- Require advanced financial management
Choose a PSA if you:
- Sell your team’s time as your main product
- Need accurate and simple tracking of projects and resources
- Want to streamline project billing and improve profitability tracking
For example, creative agency, Design de Plume, increased project profitability by over 20% using the PSA platform Scoro.
Before Scoro, they juggled Apollo HQ, spreadsheets, and Sage. Making it hard to track budgets and bill clients accurately.
With Scoro, they gained real-time visibility into costs, automated billing, and smarter resource planning, turning outdated manual reports into proactive, data-driven insights.
Ready to explore how PSA can improve your business? Start a free trial with Scoro and see for yourself how easy project and service management can be.
