Accounting vs. Billing Software in Telecom

Accounting versus Billing Software for Telcos

A comparison of telecom invoicing systems: accounting versus billing software, and what's best for telcos.

In today's competitive telecom market, sending timely invoices, collecting payments and tracking your company's financial health is critical to success.

What's the best way to get invoices out to your customers so you get paid?  The most common invoicing systems are either financial accounting packages or automated billing platforms (like TimelyBill). Both of these software applications can pack a punch.  Here is a quick comparison of the features and limitations of each.

Using Accounting Software to Produce Telecom Invoices

Accounting software enables businesses to track financial transactions (payments, adjustments, etc.) for balance sheets, P&L, and tax liability. Most accounting systems allow companies to create manual invoices and handle the needs of the typical business.

Accounting systems can typically track the following:
    • Accounting functions
    • General ledger management
    • Accounts receivable
    • Expenses
    • Revenue recognition
    Invoices produced using accounting software apps typically incorporate line items, the amount(s) being charged, taxes and the total amount due.

    Accounting software is meant to "account for" and track finance related data. However, it tends to struggle with managing subscribers and recurring payments. Especially true when their is a need to charge usage-related fees or telecom taxation.  A telecom billing platform becomes necessary as the volume of these needs grow.

    Using Billing Software to Generate Telecom Invoices

    A billing system automates the manual work required to create recurring invoices (view example). It allows service providers to create and send invoices to customers in an efficient, repeatable manner. Billing software can also help manage complex telco billing processes like subscriptions for usage-based services.

    Billing systems can typically track the following:
    • Subscriptions
    • Custom pricing
    • Service usage
    • Provisioning
    • Proration
    • Discounts
    • Payments
    • Telecom taxes
    Invoices generated from billing software applications typically incorporate product/service descriptions, fees, payments, adjustments, variable usage detail and taxes.

    Billing software does not handle tasks such as accounting, payroll, bank tracking, reconciliation, or expense management. Billing software is purposely built to automate and standardize your invoice generation presentation and distribution.

    Knock Out the Competition using the Accounting-Billing 1-2 Punch!

    A blend of these two programs seems to make the most sense for the telco providers we serve. Allow each system do what they do best. Then connect them via a data push from billing into your upstream accounting system. This can be accomplished via our REST API configurator, or scheduled database exports.

    We're happy to jump on a call to discuss how TimelyBill can help streamline your accounting and billing processes. To stay in the ring, call sales at (954) 889-6699.

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