Intro
Businesses rely on systems to run and manage tasks inside the company. Having said that, it’s very important to understand that what determines the type of system or systems implemented is the services offered, the company size, and additional key factors that influence decisions to be made.
With that in mind, we’re able to tell why some businesses require multiple systems, one centralized system with various sub-modules, or one system that services a specific purpose alone with no further associated systems needed.
Now that we have mentioned this, let us spot the differences between what an invoicing system does, and what other systems such as ERPs, accounting systems, CRMs, and more among others do in regards to what the company is looking to achieve by having them utilized.
Generally speaking, invoicing systems are developed to serve a specific purpose to manage invoices such as sending invoices, receiving invoices, and collecting invoices as the core tasks tackled. So, how do they differ exactly from the rest? Let’s dig deeper into this together!
Invoicing Systems: A Closer Look
Invoicing systems are software systems developed with the specific motive of managing billing processes for businesses. These systems facilitate how invoices are created, sent, tracked, and shared between service providers and service users through a centralized system or platform capable of doing so.
E-invoicing systems, similar to InvoiceQ, have shown an increased impact in boosting the overall performance of invoice management in organizations as they replace traditional methods that tend to rely on manual processes with ones that are completely automated to facilitate the billing cycle.
The InvoiceQ E-invoicing system supports integration with payment gateways to ease invoice collection such as the eFAWATEERcom payment gateway in Jordan. Furthermore, E-invoicing systems qualified by the Income and Sales Tax Department ISTD ensure that all invoices are compliant and follow the latest updates without the clients having to reflect those updates manually. At InvoiceQ, we handle this to save our clients the burden and ensure they have a tailored experience.
E-invoicing systems are the advanced version of invoicing systems. The term “invoicing” systems refers to systems that utilize paper-based methods and digital methods as well. Whereas, “E-invoicing” systems refer to electronic methods only which are mandated by the Income and Sales Tax Department.
Difference Between ERP, CRM, And Accounting Systems
Software systems differ according to the designated goal they are built to serve and the role they need to fill. Keeping that in mind is crucial because even the best tools can give less-than-expected performance if misused or worse not implemented in the right place. Hence, knowing what each system does is your starting point to understand what you need.
What’s An ERP System?
Short for Enterprise Resource Planning; it stands for a software system that is used for business processes inside the company including various departments such as human resources, accounting, marketing, and more through one centralized software that can be easily integrated with all its modules or some of them only depending on the ERP system type implemented.
You may consider it the connecting point of the different departments inside the company. It facilitates communication between employees and increases efficiency to the highest level.
However, ERP systems don’t necessarily come with E-invoicing modules. Hence, this is where a system like InvoiceQ comes in handy as we offer the option to use it as a stand-alone or integrate the company’s internal system with the tax authorities without the cost of losing your valuable data. This includes systems such as Microsoft Dynamics, Oracle, Xero, Quickbooks, SAP, and more.
What’s A CRM System?
Stands for Customer Relationship Management is a type of software system that assists businesses in managing how interactions happen with customers. In other words, it’s more like a centralized source for all customer information.
A CRM system offers valuable data about customers including but not limited to their contact details, purchase history, and all previous interactions that happened with them. This in turn facilitates the process of communication along with data accessibility
Having a CRM inside the company is truly a game changer and should be on the top list of must-have tools to boost your customers’ experience if your business offers services that require first-line contact with customers. Want to harvest? Know where to invest! And if not in you’re customers’ best interest then what right?
What’s An Accounting System?
An accounting system is used to manage the whole financial process inside the company, unlike E-invoicing systems that focus on billing and invoices only. An accounting system comes with various modules like any other system to handle sensitive matters such as the general ledger, accounts receivable (AR), accounts payable (AP), financial reporting, and more.
Learn The Difference, What Software Does Your Business Need?
Now that we have gone through the major differences between systems, you should be able to tell a thing or two about the role each one of them holds. Now, let’s move on to the most important part, what system should your business use?
The answer depends on the size of your company. For instance, large enterprises have to go with ERP systems as they include all sub-modules they need to manage all company departments and ease communication. This means an ERP system could have an accounting module, CRM module, marketing module, inventory module, and the list goes on.
However, not all companies have to go with big options. Thus, if your goal is to simply have a thorough analysis of your company’s financial status, your better option would be to go with an accounting system that enables you to do so.
So, what if it’s not this or that and all that you’re looking for is to have something to manage how your invoices are received, sent, and collected? Then your preferred option would be to invest in having an E-invoicing system instead. Now the good thing about making that investment with us is the fact that our system is more centralized than you think.
The InvoiceQ system includes various sub-modules that combine the best of all worlds. This includes the AP module, AR module, inventory module, procurement module, sales module, and tons of features that enable users to have a highly customizable experience on the system.
Conclusion
Invoicing systems stand apart from any other internal system such as ERPs, CRMs, accounting systems, and more for their central role in managing invoices mainly. They handle all processes related to invoices giving users one platform to manage all sent and received invoices through.
Internal systems like ERPs, CRMs, and accounting systems play essential roles in integrating and streamlining various business processes. However, ensuring their compliance with The Income and Sales Tax Department requires extra effort that can be managed through trusted E-invoicing and integration solution providers, that’s us by the way!
Would you like to learn more about E-invoicing and integration with ISTD? Get in touch with our experts and start your free system demo today!
