While some people think they are the same thing, the truth is that they are not. They sometimes serve the same purpose but not in every business. Some businesses that deal with utilities such as water, energy, and telco need separate invoicing and accounting softwares.
Why Invoicing and accounting different?
Invoicing software collects the input about the service, adds the contracted rates, and then generates an invoice. It also makes a detailed report about the receivables.
Accounting software keeps track of inventory, manages finances, monitors revenue, and handles invoicing and forecasting. It keeps track of all the financial data of the business.
Any business needs to learn about the subtle differences. Invoicing software can be used for simple operations. At the same time, accounting software is required for more complex functions.
What do these industries need?
Many utility companies need a dedicated billing platform to run their consumption-based charges. Similarly, some big companies prefer cloud-based accounting software to manage their financial operations.
It depends upon the kind of industry one is involved with and the business requirements.
- Specialist in integrating billing and accounting systems
What if we tell you you can ask a software vendor to integrate your business's billing and accounting system? That is possible. Billing outsourcing services can make this happen. They provide tailored invoicing tools and services that remove expensive bottlenecks. They use digitization to easily combine with conventional accounting programs and equipment to conduct as many invoicing tasks as needed individually.
Will invoicing software be enough?
Some people come from the school of thought that invoicing software can do the job. But that's different with a lot of business. Accounting software comes in handy when you need to track various operations.
Accounting software helps with double-entry bookkeeping and managing inventory of the products.
Accounting software provides detailed reporting options for all the transactions made. The same cannot be said about invoicing software. Accounting software is ideal if you want specific information besides the general profit and loss report.
Investing in quality accounting software is wise because it helps with employee payroll. It makes accounting easier. Check the accounting software pricing before investing.
Reasons to use invoicing software:
We discussed the advantages of accounting software, so now it is time to discuss the perks of invoicing software. Have a look;
Invoicing software comes with fewer features and is, therefore, beginner friendly. It is easier to understand.
If you want your software to compute late penalties and add them to the original bill, invoicing software perfectly matches you. This feature still needs to be found in accounting software.
It can also send snail mail invoices for you. The feature is automatic in most invoicing softwares.
You get what you pay for. Several invoicing softwares in the market will fit your needs and budget perfectly.
When you decide which software to choose among invoicing and accounting, keep in mind the needs of your business. If you think invoicing software will do the job, compare the prices and select one. Similarly, do your research on accounting software pricing before making a decision.