Invoicing software or ERP. Which is best for your company?

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When it comes to choosing the best support to manage your business, there are several options, but what seems most obvious is not always the best. Learn the differences between billing software and ERP so you don't get confused when making your choice.

ERP, the complete package for integrated management
ERP is the acronym for Enterprise Resource Planning , which in Portuguese means Corporate Resource Planning or Integrated Business Management System. It is a management tool that favors data analysis and allows the conversion of business strategies into well-structured processes shared throughout the organization, promoting the accuracy of information to support management. In short, an ERP allows companies to manage and monitor their operations in a global way.

ERP systems are vitally important for the management of a company, as they honduras whatsapp database the structuring of information flows in relation to the various operational areas of the company, from the purchasing area, through commercial activity and customer management, to the control of current accounts, treasury and personnel, all within the same software and in an integrated manner. In this way, information is shared between the various operational areas so that at the end of the day all the data matches and the information is accurate.

When it comes to open technology systems, ERPs are equipped with parameterization and configuration capabilities, allowing them to be adjusted to each company and thus respond to specific needs, regardless of their size or sector of activity.

The ERP presents a modular architecture that covers the main functional areas of companies, including a set of fully interconnected modules that guarantee data fluidity between the Financial, Logistics/Sales, Treasury, Human Resources, Assets, Projects areas, among others.

This modularity allows companies to start today with just a sales component and evolve in other areas, without ever losing their historical business data. The ERP works like Lego pieces, which are attached and grow according to the needs of each organization.

Invoicing software, when the focus is on commercial management
On the other hand, we have Billing Software , a more basic and restricted system, which covers only the main processes of the supply chain, focusing on invoicing and commercial operations, customer current accounts, receipts and stocks.

Because it is a simpler solution and geared solely towards commercial activity, in certain situations it may seem more agile and suited to the current needs of your business, however, it lacks scalability. This means that when the company grows and has branches, it will need other operational and financial control mechanisms that billing software cannot guarantee.

Up until that point, the billing software has fulfilled its function very well, but when it comes to evolving into a more complete system, it will lose all its history. One might question to what extent history is really that relevant, but it is undeniable that one of the greatest assets that organizations can have is their historical information. It is based on this information that it will be possible to analyze its evolution. Only with history will you be able to benefit from machine learning technology capable of anticipating the future.

What is the best option for my company: billing software or ERP?
When choosing between invoicing software or ERP to support your business management, do the following exercise. Before looking at invoicing software, consider the possibility of opting for an ERP invoicing module. In addition to being more functionally complete, you will immediately start working on a logic of data integration in structured flows of highly organized information. In this case, you will already be prepared for the moment when your company takes the leap and grows. Something that invoicing software will not be able to provide.

In recent years, many invoicing software providers have ceased operations or been acquired by larger groups. In addition, there are many ERP platforms that offer the same invoicing functionality but with scalable growth potential . So, why should your company choose traditional invoicing software?

Let's think of an ERP as a solution that allows you to adapt to your company's needs, being able to integrate different modules as your company grows and even integrate with other applications, systems or platforms that you already use or intend to use.

By choosing an ERP, you can include the invoicing module and benefit from all the features necessary for commercial management, while also having other important features in the same system for managing the business across the board. There is no room for doubt here: invoicing software is far from having the capacity to extend the features that a modern ERP has.

If we look closely at the technological landscape, we can easily see that the new releases mostly concern ERP systems , naturally because these respond better to the needs of organizations.

In large companies , the decision has already been made: only a complete system such as an ERP can manage several factories, distribution centers, warehouses, personnel, assets, treasury and tax reporting, all in the same solution. And if they still need additional tools to manage their sales, provide after-sales support or develop marketing campaigns, an ERP easily integrates with other systems, whether they are small applications or international solutions.

Of course, in terms of investment values, we are talking about different solutions, but what is the point of having a flower that cannot survive in my garden once spring arrives ?