Whether you are running a retail shop or handling business operations of large organizations, receiving payments from customers and recording your businesses’ financial transactions is crucial to your success. Most businesses begin by tracing everything in Google spreadsheets, waiting to make a digital move to tools only when they have sufficient funds. Lesser do they know is hundreds of the best accounting software for businesses are available for free and leveraging them reduces manual intervention to a great extent.
So, if you are in the market looking for online billing software for enterprises, there are higher chances of you being confused to make a choice between accounting and billing software. Though both of them have similar features, there is a subtle difference between the two. In this article, we’ll help you address all your queries. But before that, let us quickly have an overview of what this software actually is.
What is an Accounting Software?
Accounting software for financial services allows users to document financial activities. They work as a record system and can be used for tax liability, shareholder reporting, and business analysis.
What is a Billing Software?
Online billing software for enterprises allows users to generate and send receipts to customers more efficiently. Online billing and payments, automatic reminders, and billing portal access are examples of some common characteristics of billing software.
Now that you have determined the sole purpose of this software, let’s dive deeper to understand their difference.
Billing vs Accounting Software For Businesses: What’s the Difference?
When it comes to choosing between online billing software for enterprises and accounting software for financial services, the fact is – it depends on your business requirements. What suits and works best for you might not work for someone else, and vice versa. So, choose wisely.
However, the best accounting software for business and billing software appear to be similar due to some of their common functionalities. But they serve different objectives. That is why businesses often get confused to make the right choice. So ensure you ask yourself some questions and avail of their answers to make an informed decision.
Here, we will address the 5 most frequently asked questions concerning the similarity between accounting and billing software, and what you must not miss asking. So, without any further ado, let us quickly answer these questions.
5 Key Questions You Must Miss To Ask While Purchasing Accounting Software For Businesses
Before you begin assessing different tools, get the answers to the following questions to help you make the right choice.
What would you like to achieve with the online billing software for enterprises?
Do you want to manage your taxes faster and smoothly? Or do you need to evaluate a general ledger automatically, run payroll for workers, and make sure you are GAAP obedient without a lot of practice?
Maybe you have a store with no record, and you need the best billing software for businesses to send out invoices. Or you might need to push out a large number of invoices periodically. To determine which is the right software for you, you must clearly define your objectives and needs. Ask your team about their requirements and list them. The answer to all these will help you decide whether you should buy accounting software for financial services or online billing software for enterprises.
What type of payment options do your customers prefer?
Before choosing the best accounting software for businesses, it is crucial to consider the payment options you offer to your customers, and most importantly the payment modes customers prefer. Additionally, you must also take into account the new opportunities you plan to provide in the future.
If you want to buy billing software, think about your billing process’s current and desired complexity before going forward with any platform.
What is your budget?
There are multiple online billing software for enterprises and accounting software for financial services available on the market. Though each of them features some common functionalities, they differ based on their interface and some advanced capabilities. If you have a predefined budget, you can sort out your options accordingly. However, if you fear that the software won’t bring in fruitful results, you can always consider choosing a free billing and invoicing software like one from Moon Invoice. Alternatively, you can also opt for a trial period before making the final purchase.
What features do you need from accounting software?
You must make a choice based on the features you require. Don’t run after accounting software for financial services that offer more features than you need by paying extra.
However, if you are not much familiar with accounting software, it may be difficult to make a choice. So, here are some common features you must look for:
- Recurring Invoicing
- Custom Invoice Template Designs
- Client Portal
- Lead Management
- Contact Management
- Expense Tracking
You can also book a demo from the service provider to determine the features of the platform.
Do you require cloud-based or on-premises software?
Another significant factor when considering the best accounting software for businesses is whether you want web-based software or on-premises software.
- Web-based (cloud-based): Such software is hosted in the cloud and is generally accessible on any browser or device (including iPads and smartphones).
- On-premises: It is downloaded and installed on a single computer (though some programs come with various installations).
While the cloud is undoubtedly the big new thing for accounting software, some people prefer locally-installed software.
As businesses step towards digital transformation, traditional accounting has taken a backseat. Though business management software automates the entire business operations, many times you may require using a standalone accounting system. In such a scenario, it is challenging to make a choice between the best accounting software for businesses and online billing software for enterprises. So, enlist your needs, define your objectives, consider your budget, and make an informed decision.
Moon Invoice is one of the best invoicing and billing software for enterprises that functions seamlessly across multiple platforms and devices. Millions of businesses across the globe are leveraging its benefits to ease their accounting and invoicing processes. You, too, can!