People sometimes confuse accounting software and invoicing software. So how do they differ, and what software does your business need?
3 min
Whether you are a start-up or have already built up a solid SME, all businesses must manage their finances. Running a business involves many tasks, from collecting invoices from forgetful customers to completing VAT returns. This requires both invoicing software and accounting software.
With invoicing software, you can create and send invoices efficiently. The software also allows you to create purchase orders and delivery notes, automatically send payment reminders, link product catalogues, automatically reconcile and more. Invoicing software helps businesses simplify their daily financial tasks and customer management. For example, with Billit, you can effortlessly convert a quote into a purchase order, delivery note or invoice.
Accounting software collects, processes and manages all the data that affects a company's finances: income and expenditure, taxes, profit and loss statements and more. Some accounting software also allows you to invoice, but the features are usually very limited. Accounting software should not be confused with office management software for accountants, which is software designed to simplify and automate the internal organization of accounting firms.
Larger companies with in-house accounting services use both invoicing software and accounting software. Sole traders and small businesses tend to work with external accountants. An external bookkeeper’s or accountant’s software can be linked to the business’s invoicing software.
Accounting software and invoicing software are now all cloud-based, offering integrations for platforms to communicate with each other. For example, Billit allows you to link not only with your accountant’s software but also with your webshop, bank, CRM system, etc.
Customer Relationship Management (CRM) is all about managing interactions with (potential) customers. CRM software consists of contact management and sales management tools – software that helps improve business relationships.
Enterprise Resource Planning (ERP) is about integrating and automating administrative, financial, commercial and logistics processes in a single software solution: the ERP system.
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