Many small businesses sign up for accounting software simply because they need to send invoices. Months later they realize they’re paying for bookkeeping features they rarely use, while still juggling a separate CRM, proposal tool and eSignature app to win the work in the first place.

This article explains the difference between accounting software and an all-in-one CRM with invoicing, so you can choose the right tool, or the right combination of tools, for how your business actually runs.

Accounting software and invoicing software are different jobs

Accounting software such as QuickBooks Online is built to keep your books: bank reconciliation, chart of accounts, expense tracking, financial statements and tax preparation. Invoicing is one feature within a much larger financial system.

An all-in-one CRM with invoicing is built around the customer and the sale. It tracks leads and deals, creates estimates, collects signatures, turns accepted work into invoices and collects payment. It’s designed for the front half of your business: winning work and getting paid for it.

Neither is “better.” They solve different problems. The question is which problem is bigger for you right now.

Signs a CRM with invoicing is the better fit

• You mainly need to quote, invoice and collect payment. Your accountant or bookkeeper handles the books separately, or your bookkeeping needs are simple.
• You retype the same information. Client details go into a CRM, then into a proposal, then into an invoice.
• Estimates and contracts slow you down. You send PDFs, wait for a signed copy by email and then build the invoice manually.
• You pay for several tools. A CRM, a proposal app, an eSignature service and invoicing software add up quickly.
• Clients ask where things stand. You’d benefit from a client portal where they can see estimates, sign and pay.

Signs you still need accounting software

Be honest about what you need. You’ll still want dedicated accounting software, or an accountant who uses it, if you need:

• Bank feeds, reconciliation and a full general ledger
• Payroll processing
• Financial statements such as profit and loss and balance sheets
• Tax filing support and accountant collaboration
• Inventory accounting or complex multi-entity books

Plenty of businesses use both: a CRM to run sales, estimates, signatures, invoicing and payments, and accounting software (or their accountant) for the books. The key is not paying for overlapping features you don’t use.

What to look for in a CRM that invoices

1. Estimates that convert to invoices in one click once the client accepts.
2. Online payments by ACH and card, with options like Stripe and PayPal.
3. Recurring invoices for retainers and subscriptions.
4. Automatic reminders before and after the due date.
5. Multi-currency and flexible tax, including per-item, state and country taxes or VAT.
6. Branded templates and PDF download for your records.
7. Data export, so your bookkeeper can bring numbers into your accounting system.

A simple way to decide

List the tasks you do every week to win and bill a client. If most of them are sales, proposals, contracts, invoices and payment follow-ups, start with an all-in-one CRM that handles those well. If most of them are bookkeeping, reconciliation and payroll, accounting software should be your core tool.

And if it’s both, choose tools that don’t overlap, so each one does its job and you only pay once for each capability.

QuickBooks is a trademark of Intuit Inc. This article is a general comparison of software categories and isn’t affiliated with or endorsed by Intuit.