Are you curious about the differences between business-to-business (B2B) and business-to-consumer (B2C) companies? Did you know these two models have distinct differences that can impact everything from sales strategies to customer support?

For instance, while B2B companies typically focus on building long-term relationships with other businesses and organizations, B2C companies often emphasize the importance of reaching individual consumers through mass marketing.

Suppose you’re someone interested in entering the tech industry. In that case, it’s essential to understand these differences and how they can impact your career.

This article will deeply dive into the five differences between B2B and B2C companies, including their business models, market approach, customer needs, sales process, and customer support. We’ll provide concrete examples to help illustrate how these differences manifest in practice, and we’ll also provide the required skills needed to work in these companies.

By the end of this article, you will better understand the unique challenges and opportunities presented by B2B and B2C companies, which will equip you to make more informed decisions about your career path in the technology industry.

What is B2B?

Before further detailing the differences between B2B and B2C, we must understand each definition.

Business-to-business (B2B) is a type of commerce where one business sells products or services to another business or organization. In other words, B2B transactions happen between companies, governments, or institutions.

B2B transactions usually involve more giant quantities of goods or services. The sales process can take longer and be more complex than other types of transactions.

What is B2C?

Factors such as the company’s nature, target customers, and industry influence the business model of a B2B company. Some common business models that B2B companies include:

• Customer-centric: This model involves a B2B company selling its product or service to other companies and providing support as needed. This approach allows the company to differentiate itself from its competitors and build customer loyalty for long-term success.
• Buyer-centric: This model involves a business selling its product without providing ongoing service or support. This model can reduce initial costs and ensure short-term success. However, the company can face challenges if it’s unable to build customer loyalty or create brand value for the product or the business.

• Intermediary-centric: This model involves a business selling its product to another company and charging an additional fee as a middleman. This strategy generates revenue to sustain operations in the long run. While the model may not be immediately profitable due to high costs, it can establish brand value by offering exclusive and valuable services to customers.

Since B2C companies sell their products or services directly to individual consumers, their business model differs from that of B2B companies. Here are some common business model types  used by B2C companies:

• Direct sellers: This model involves the B2C company creating physical stores or online platforms where customers can purchase their products directly.
• Online intermediaries: This model allows companies to act as middlemen without owning the products. These companies usually create an online platform that connects buyers with sellers. They earn revenue by charging a small percentage of the vendors’ sales.
• Fee-based: This model charges consumers a fee for accessing the content or services. Some companies may offer a limited amount of their content or services for free initially. However, accessing the rest of the content is only possible by paying a fee or subscribing to a paywall.
• Advertising-based: This model is when a website provides free content to attract visitors and makes revenue by displaying ads. The more visitors the site has, the more valuable it becomes to businesses that want to promote their products or services to a larger audience.
• Community-based: This model relies on building online communities around shared interests. Marketers and advertisers can use these communities to promote their products or services to consumers directly. Websites that use this model usually employ targeted advertising based on users’ demographics and geographical location to make their campaigns more effective.

Market approach

B2B and B2C companies have different ways of doing business. B2B companies work to build long-term relationships with other businesses and prioritize offering solutions that are customized to meet their specific needs.

B2B companies focus on logic-based buying habits, emphasizing needs rather than an emotional attachment to a product.

On the other hand, B2C tech companies aim to reach a larger audience of individual consumers with a more general approach. These companies focus on branding and emotional appeal by crafting messaging that resonates with their target audience’s values and aspirations.

Marketing strategies

B2B and B2C companies have different strategies. B2B companies prioritize understanding their industry’s target audience’s needs and behavior.

One popular B2B marketing strategy is account-based marketing (ABM). It targets high-value accounts with personalized campaigns that address their specific needs. B2B marketers also create informative content such as white papers, case studies, and webinars to establish themselves as industry leaders.

On the other hand, B2C marketing targets large-scale marketing efforts that aim to capture the emotions and preferences of individual consumers. This marketing strategy involves creating ads, social media campaigns, and promotions that grab the consumers’ attention.

B2C marketing emphasizes product features and benefits, price points, and creating an emotional connection with the brand. Tactics used in B2C marketing include influencer, social media, and email marketing.

The main goal of a B2C marketing strategy is to build brand identity and a loyal customer base that leads to revenue growth through repeat purchases and positive word-of-mouth.

Sales process

B2B and B2C are different ball games when selling products or services. B2B sales involve a more complex process, which can take a long time and involve multiple decision-makers.

B2B deals often involve large contracts with long-term commitments, and multiple stakeholders must justify the buying decision. A single sale can require a significant investment of time, effort, and resources from the buyer and the seller.

To make a successful sale in B2B, you may need to go through several stages, such as prospecting, lead qualification, proposal creation, negotiation, closing the deal, and a follow-up. Building a solid relationship with clients is crucial throughout this process since B2B transactions often rely on trust, mutual respect, and collaboration.

In contrast, B2C sales are much simpler, and the sales cycle is shorter. These deals usually involve fewer decision-makers since the customer navigates the buying process independently. Customers may receive influence from social media, affiliates, or ads before engaging with B2C sales. They may also actively seek advice from friends, family, or product reviews, particularly for expensive purchases.

Customer support

When businesses sell products or services to other companies (B2B), they usually provide customer support, which helps the customers with technical problems, general questions, and other issues.

B2B companies generally provide more comprehensive customer support than B2C companies — because B2B customers are fewer and often have more complex needs.

B2B businesses offer customer support that can involve assisting customers with integrating their products and services with other systems, providing training, and managing customer accounts. These tasks can be challenging, so B2B companies typically have a specialized support team to handle them.

On the other hand, B2C customer support focuses on helping individual customers. Individual customers are usually more self-sufficient and want quick and efficient solutions to their problems.

B2C companies can provide efficient self-service options, such as automated chatbots, to help customers quickly get the necessary information. They should also have an easy-to-use website with helpful resources, such as detailed product information, to assist customers in finding what they need.

B2B companies in the tech industry

In the tech industry, companies sell products or services to either other businesses (B2B) or individual customers (B2C).

B2B tech companies focus on serving other businesses by providing tools and services to help with their day-to-day operations. Let us share two examples of B2B tech companies to give you a better idea.

B2B tech companies focus on serving other businesses by providing tools and services to help with their day-to-day operations. Let us share two examples of B2B tech companies to give you a better idea.

Microsoft

Microsoft is a tech company that operates primarily as a B2B, selling software, hardware, and services to other businesses and organizations.

Some examples of Microsoft’s B2B products are Office Suite, which includes popular applications like Word, Excel, and PowerPoint. The company also sells Azure, a cloud-based platform that helps businesses manage their data and applications on Microsoft’s servers.

In addition to software, Microsoft also designs hardware products like Surface laptops and tablets that cater to business needs. The company also offers various services to businesses, from technical support to consulting and training.

Adobe

Adobe is a company that makes software for creative professionals and marketers. They have products like Photoshop and Illustrator for creatives, Adobe Campaign, and Adobe Experience Manager for marketers.

Adobe is different from regular companies that sell to individual consumers. They make products for people who work in businesses, like creatives and marketers. They sell licenses and subscriptions to these businesses rather than to individual consumers.

B2C companies in the tech industry

Now, let us share two examples of B2C companies that operate in the tech industry.

Apple

Apple primarily operates as a B2C company, designing products such as the iPhone, iPad, and Mac for individual consumers. They sell their products directly to consumers through retail stores, websites, and third-party retailers, with customer service tailored to the needs of individual consumers.

Apple’s marketing campaigns are known for their emotional appeal, emphasizing the brand’s image and highlighting features that resonate with consumers, such as taking photos or playing games.

While Apple does offer some products and services for businesses, they are not a significant part of its overall business strategy.

Netflix

Netflix is a company that provides a streaming service for movies, TV shows, and original content directly to customers through subscription-based plans.

They build their business model around delivering high-quality content and ensuring a user-friendly customer experience. Netflix uses personalized recommendations, invests in original content production, and prioritizes user interface design to make the service more enjoyable.

This approach has helped Netflix to build a large and loyal customer base, making it one of the most successful streaming services in the world.

Skills required to succeed in a B2B company

Working in a B2B (business-to-business) company requires unique skills and knowledge. Here are five skills you need to develop to excel in this field:

Communication & relationship building

To work in a B2B company, you must frequently communicate and engage with other businesses, vendors, and clients. It’s essential to have strong communication skills to express your ideas clearly and negotiate deals effectively.

Moreover, you’ll have to maintain relationships with other businesses, which involves listening actively to their needs and showing empathy toward their concerns.

Strategic thinking

In B2B companies, having a strategic mindset is crucial. You must think ahead and make decisions supporting the company’s long-term goals.

A deep understanding of the market, customer needs, and the competitive landscape are essential to achieve a strategic mindset. This understanding will help you stay ahead and make informed decisions.

Analytical & problem-solving skills

In a B2B company, you must have strong analytical skills to analyze data such as sales, customer feedback, and market trends to make informed decisions.

Moreover, you should be able to identify problems and provide innovative solutions that meet your client’s needs. This requires critical thinking, strong problem-solving skills, and thinking outside the box.

Technical know-how

Technical skills are essential for success in many B2B industries, like technology, manufacturing, and engineering. Depending on your role, you may need product development, system integration, software development, data analysis, or project management skills.

Being proficient in technical skills can give you an edge and help you perform your job effectively. It can also help you understand client needs better and provide them with better solutions.

Business awareness

Understanding the business processes is vital for success in a B2B company. This means understanding the B2B landscape, your company’s industry, and the customer’s business.

Business awareness also involves knowing the financials to negotiate effectively. With this understanding, you can identify potential clients, offer practical solutions, and build strong relationships.

Skills required to succeed in a B2C company

Now, if you want to work in a B2C (business-to-consumer) company, the required skills may differ from working in B2C. Here are some skills that can help you succeed in this field.

Marketing skills

Marketing is crucial for B2C companies to attract and retain customers, understand their needs, build brand awareness, and drive sales.

Being familiar with marketing concepts and strategies such as social media, email, and content marketing is crucial to excelling in working for B2C companies. These marketing efforts aim to capture the attention of individual consumers through large-scale marketing efforts such as ads, social media campaigns, and promotions.

Creativity

B2C companies often rely on creating innovative and engaging marketing campaigns to capture the attention of individual consumers and differentiate themselves from competitors.

Creativity allows you to develop unique ideas, designs, and messages that resonate with customers and build brand loyalty.

Additionally, it enables you to think outside the box and develop creative solutions to problems that may arise in the workplace.

Market awareness

Marketing awareness is crucial when working for a B2C company. Understanding the target market, their needs, preferences, and behaviors, and how to communicate effectively, is essential for success.

By knowing marketing fundamentals, such as research, advertising, promotions, and branding, you can help the company achieve its goals. This awareness also keeps you up-to-date with the latest trends and technologies, making you a valuable asset to the company.

User experience (UX) proficiency

UX refers to a user’s overall experience when interacting with a product or service, including its design, usability, and functionality.

A positive user experience is crucial in B2C companies for attracting and retaining customers. Understanding UX principles such as user research, information architecture, and usability testing helps design products that meet the target market’s needs and preferences.

Knowing UX helps you identify and solve problems that users face when interacting with the company’s digital products, leading to improved customer experience, satisfaction, and loyalty – ultimately driving sales and revenue.

Time management

B2C businesses have a shorter and simpler sales cycle, and customers expect immediate satisfaction. These companies depend on quick turnarounds for marketing campaigns, promotions, and product launches to stay competitive in the fast-paced market.

In a dynamic environment, practical time management skills are essential to succeed. This involves prioritizing tasks, delegating responsibilities, and meeting deadlines. Effective time management can ensure projects are completed on time and within budget, contributing to the company’s success.

Conclusion

Educating yourself about the differences between B2B and B2C is crucial if you’re looking to start a career in the tech industry.

So if you’re still unsure about which direction to take, we encourage you to dive deeper into the five critical differences discussed in this article. Take time to reflect on your career goals, strengths, and interests, and then use this information to make an informed decision about your future.

With this knowledge, you can confidently take your first steps toward a successful and rewarding career in the tech industry.

A distributor is someone or a company that helps to sell and deliver goods and services from the producers to the customers. They are necessary for many industries, such as electronics and pharmaceuticals, as they link the manufacturers and customers.

As technology advances, customers want goods delivered quickly, and distributors become more critical in the supply chain.

This article provides a complete understanding of distributors, including their types, functions, and benefits. It also outlines what businesses need to consider when selecting a distributor so that they can make informed choices about their distribution channels.

What is a distributor?

A distributor is a middleman that helps transfer products or services from manufacturers or suppliers to retailers and end-users.

Distributors typically work with many manufacturers and downstream entities and act as an agent for each manufacturer, agreeing to sell their products to retailers, value-added resellers (VAR), or wholesalers.

People sometimes mix up distributors and wholesalers, but they are pretty different.

Wholesalers mainly purchase goods in bulk from manufacturers and sell them to retailers. On the other hand, distributors have a more extensive range of responsibilities, including marketing, warehousing, and financing.

Read More: What is a Wholesaler? Definition, Benefits, and 4 Challenges

Types of distributors

Depending on their strategy, distribution can be simple or complicated. Sometimes companies use several distribution channels or techniques. Here are five different types of distributors in the supply chain:

Direct distributor

This type of distributor is sometimes called a one-level channel. They provide a simple way to get products to customers without using intermediaries. Manufacturers are an example of direct distributors because they give out their products themselves.

Direct distributors sell their products in different ways, such as online shops, physical stores, door-to-door sales, or directly from the factory. This type of distribution is helpful for businesses because it helps customers trust the brand and improves their experience. Direct distribution is widespread in industries such as cars, technology, and agriculture.

Indirect distributor

Indirect distributors involve other people or businesses that buy products from manufacturers and sell them to consumers. These distributors could be wholesalers, brokers, or agents.

Sometimes manufacturers don’t have the resources to distribute their products, so they use indirect distribution. This type of distribution also helps businesses reach more customers and make more sales because their intermediaries might have established connections with buyers and customers.

But there are also some downsides to indirect distribution. It adds extra costs, meaning customers pay more for the products. It also slows down the delivery of the products and gives less control to the manufacturer.

Exclusive distributor

This type of distributor gets the exclusive right to sell certain products in a specific area for a set amount of time. Distributors that get this exclusivity are the only ones allowed to sell those products in that area during that time.

The manufacturer and the exclusive distributor make an agreement that outlines everything they need to do, such as pricing, marketing, and sales targets.

For example, a luxury bag manufacturer might only allow a few stores in certain areas to sell their bags through an exclusive distributor. This limited availability gives the distributor much control over how they sell and distribute the bags.

Intensive distributor

In an intensive distribution model, the distributor distributes products to as many places as possible, unlike an exclusive distributor.

Manufacturers usually use this strategy for products in high demand but sold at a low price, like snacks, drinks, and other fast-moving consumer goods (FMCG).

Businesses use intensive distributors to make their products more visible and accessible to customers. Companies can convert leads to more sales and a more significant market share for the manufacturer.

Functions of distributors

The role of distributors is critical in the supply chain, as they perform various functions vital to the success of manufacturers and suppliers. Here are the five essential functions of distributors.

Inventory management

Distributors play an essential role in managing inventory levels and stock levels. The function of a distributor is to keep an eye on how much stock they have and ensure they have enough of the right products to meet customer needs.

To guarantee on-time delivery of products to the correct location, distributors need to maintain proper inventory and stock levels. For example, if a retailer requires a specific product, the distributor must have sufficient stock to fulfill the order. Inadequate inventory can delay the delivery of the product to the retailer, leading to dissatisfied customers and missed sales opportunities.

Read more: Just in Time (JIT) adalah: Definisi & 8 Cara Penerapannya

Warehousing

Distributors provide warehousing and storage facilities to store products that they receive from manufacturers. The distributors design these facilities to keep the products safe, secure, and in good condition until they are ready to ship them to retailers or end customers.

While the products are in the warehouse, the distributor is responsible for any possible losses. For example, products may get damaged, expire, or become outdated. It is crucial for distributors to properly handle and dispose of any goods that have expired or are damaged.

Read More: Apa itu gudang? 12 Alasan Mengapa Gudang Dibutuhkan

Order fulfillment

One function of a distributor is to receive orders from retailers and consumers, process them quickly, and ensure timely delivery. Distributors checks if the products ordered are available and look for additional instructions. Next, the distributor packs the products, generates shipping labels, and schedules the delivery.

Distributors may combine orders from different retailers and consumers into one shipment to save money on transportation costs, called order consolidation. This method is cost-effective as it reduces the number of trips required.

Transportation

Another function of distributors is the transporting and delivery of goods. Distributors transport products from their warehouses to the buyers who have purchased them. This means that distributors must figure out how to move the products from their warehouse to the buyer’s location.

When a buyer orders products, the distributor makes sure the products are packaged and labeled correctly for shipping. They may hire a shipping company or use their delivery trucks to transport the products.

The distributor is responsible for ensuring that the products are delivered to the buyer safely and in good condition. This involves tracking the products during transit, monitoring temperature and humidity levels, and preventing damage during loading and unloading.

Marketing & sales

Not many people know that promoting and selling products is an essential aspect of the role of distributors in the supply chain. Distributors must possess market expertise and knowledge of customer needs, which helps them develop customized marketing strategies and sales programs.

Distributors collaborate with manufacturers to create marketing materials and incentivize retailers to sell more products. They use their market expertise to identify new opportunities and work with online and specialty stores to expand sales channels. Additionally, they support retailers by providing product information, training, and merchandising.

Customer service

Distributors make sure customers are satisfied by handling their questions and complaints. They act as the go-between for the manufacturer and the customer to resolve possible problems.

Distributors assist customers with product issues by coordinating with the manufacturer for a refund or replacement in case of damages. Additionally, they inform customers about product features and warranties. Customer support is crucial for building customer loyalty and trust, benefiting the manufacturer and retailer.

Advantages and disadvantages of using a distributor

Distributors play a critical role in the supply chain as they provide a range of benefits to both manufacturers and retailers. However, they also have their disadvantages. The table below shows the pros and cons of utilizing distributors.

Category	Pros	Cons
Market Reach	Distributors can help reach a wider market through their established network and relationships with retailers and customers.	Distributors may not prioritize your brand if it is not one of their top performers, and they may not always have the same passion for a business’s product.
Logistics	Distributors can take care of the logistical tasks, such as warehousing, shipping, and delivery, allowing you to focus on other business areas.	Businesses may have less control over the shipping and delivery process, and additional costs may be associated with using a distributor.
Sales	Distributors can provide sales support and help increase your product’s visibility in the market.	The distributor’s sales force may not always have the same level of knowledge or enthusiasm for your product as you do, and they may not be able to provide the same level of personalized attention to customers.
Cost	Distributors can help to reduce costs by allowing businesses to share expenses with other brands, such as warehousing and shipping costs.	Distributors may charge a commission or other fees that can eat into your profits.
Risk	Distributors can help reduce risk by assuming responsibility for inventory and sales.	Companies may have less control over their product’s branding and marketing when using a distributor, and there is always the risk of the distributor going out of business or not performing as expected.

Factors to consider when choosing a distributor

A distributor’s role can be crucial in determining the success of a business. Whether a company is a newly-established startup or an established corporation does not matter.

Businesses must identify a partner who comprehends their business and has the expertise to assist them in achieving success.

Here are some factors to consider when choosing a distributor:

• Customer service: When selecting a distributor, it is crucial to consider their customer service. This refers to the level of support they will provide customers, including handling any issues or complaints they may have promptly and professionally. Good customer service can help build and maintain a positive reputation for businesses. In contrast, poor customer service can lead to negative reviews, lost sales, and damage to brand reputation.

• Industry experience: Consider the distributor’s experience in the industry when selecting them. A distributor with experience will better understand the product and target market, increasing the distribution’s effectiveness. Additionally, an experienced distributor can navigate industry regulations and provide valuable insights and recommendations for achieving success.
• Distribution channels: Distributors must have a vast reach to the target market. They should be able to select and distribute products through channels that work best for the company they are distributing. For instance, if a business’s target market is primarily online, they need a distributor with a solid online presence. Also, consider whether the distributor has established relationships with retailers, wholesalers, or online marketplaces, as this can make getting the goods in front of potential customers easier.
• Flexibility: To choose a suitable distributor, look for one that can adapt to changing needs. Businesses should consider if they plan to expand their product offerings in the future and if the distributor can accommodate those changes. Companies should also look for an innovative distributor constantly seeking new ideas and methods to help them stay ahead of the competition.
• Financial stability: Businesses must ensure that their distributors are financially stable. It would be awful if the distributor could not pay their bills or struggled to stay afloat. Financial problems can cause distributors to have delays or delivery issues. Businesses should always ask for references and check a distributor’s payment history.

Examples of distributors

Below are examples of Indonesian and global distributors, categorized based on their areas of specialization.

Food and beverage (F&B)

Distributors from the F&B sector include PT Infofood Sukses Makmur Tbk, PT Mayora Indah Tbk, The Coca-Cola Company, Dole plc, and General Mills.

Retail

Distributors from the retail sector include Unilever plc, PT Sinergi Inti Plastindo Tbk, PT Erajaya Swasembada Tbk, PT Mitra Adiperkasa Tbk, and PT Mustika Ratu Tbk.

Healthcare

Distributors from the healthcare sector include PT Kimia Farma Trading & Distribution, McKesson Corporation, Cardinal Health, Alfresa Holdings, and AmerisourceBergen Corp.

Energy & Gas

Distributors in this sector include PT Pertamina (Persero), PT Perusahaan Gas Negara Tbk, Shell plc, Weatherford International, and Schlumberger Limited.

Conclusion

As the demand for quick delivery continues to rise, the role of distributors becomes more crucial in the supply chain by linking manufacturers and customers.

This article has effectively highlighted distributors’ indispensable role in business by providing readers with a comprehensive overview of their functions, benefits, and different types.

Businesses must consider various factors when selecting a distributor to make informed decisions about their distribution channels. In summary, companies rely heavily on distributors for their success, and one cannot overemphasize their significance.

Mekari is an Indonesian technology company founded in 2015. They specialize in cloud-based software-as-a-service (SaaS) solutions to enhance business productivity and efficiency.

Mekari has various products that act as solutions in multiple industries, such as financial services, sales, human resources, etc.

Among their products are: 

• Talenta 
• Sign 
• Flex
• Qontak 
• Klikpajak 
• Jurnal

This article will take a closer look at Jurnal by Mekari and explore its features, advantages, and limitations to give you an informed perspective before deciding which accounting software to use for your business.

What is an accounting software?

Mekari Jurnal is, at its core, an accounting software and not a complete enterprise resource planning (ERP) solution.

Accounting software is a tool that helps bookkeepers and accountants keep track of a company’s financial transactions and prepare reports.

The features and capabilities of accounting software may vary depending on the specific product being used. Larger companies often prefer customized software that can integrate data from multiple departments. On the other hand, smaller companies often opt for packaged software.

The pros and cons of accounting software

Using accounting software comes with both advantages and disadvantages. Below are some of the most frequently encountered benefits and drawbacks.

Pros

• Accuracy & Efficiency: The biggest advantage of using accounting software is that it automates your business process.Using accounting software saves time, reduces errors, and accurately calculates complex data.
• Accessibility: Cloud-based accounting software allows access from anywhere via an internet connection. Additionally, it can support multiple users, enabling your team to access the same data and collaborate in real-time.
• Better organization: With accounting software, businesses can easily categorize financial transactions, generate reports, and automate routine tasks. This allows users to understand better their business’s financial health, which can help them make better-informed decisions.
• Improved insights: Accounting software can provide better insights by generating customizable reports, tracking key performance indicators, and forecasting future cash flow. This more profound understanding of your financial data allows you to make data-driven decisions, identify areas for improvement, and drive business growth.

Cons

• Cost: While the initial requirements of online accounting software may be low, it is important to consider that monthly fees can accumulate over time. Some accounting software solutions may charge more for additional users or mobile access, adding to the overall cost. 
• Reliance on technology: Accounting software relies on internet access to retrieve financial data, and a slow or unreliable internet connection can limit your access to this information. Moreover, technical issues with your hardware, software, or internet connection can prevent you from accessing data. 
• Security risks: Storing sensitive financial information online comes with the risk of security breaches or cyberattacks that could threaten the confidentiality and integrity of your data.
• Learning curve: Users unfamiliar with accounting principles or software usage, particularly those accustomed to the traditional way of doing things, may face a learning curve depending on the complexity of the software.

Differences between accounting software and ERP

Accounting software and ERP are often confused with one another, but they are two distinct types of software.

Accounting software primarily focuses on financial management, including tasks like generating financial statements, tracking accounts payable and receivable, and creating sales and invoice reports.

In contrast, an ERP system is an integrated software solution that manages all aspects of a business, from financials and operations to customer service and more. With an ERP system, companies can combine data from all areas of their operations to gain a more comprehensive understanding of their performance and bottom line.

An ERP system offers a more holistic approach to business management than accounting software.

Read more: What is ERP? How is ERP system different?

Product overview

Jurnal.id is an online accounting software designed to cater to the needs of startups, small to mid-sized businesses (SMBs), and companies with multiple branches.

Source: jurnal.id

Jurnal is offered exclusively as a SaaS, meaning users pay a subscription fee to access the software hosted on external servers. Jurnal aims to streamline business operations by automating accounting and financial management processes, reducing potential errors, and saving business time and resources.

Additionally, Jurnal offers various features that cater to the specific needs of enterprises related to financial recording, bookkeeping, and business operations.

Features

Jurnal provides users with seven accounting features, four core features, and three add-ons.

Core

• Business & Financial Reports: This feature enables companies to automate financial activities, such as generating accurate financial reports, including cash flow statements, profit and loss statements, financial balance sheets, and changes in equity.
• Accounting: This feature facilitates automated accounting calculations for businesses and includes a complete bookkeeping module that covers the Chart of Accounts (CoA), General Journal, General Ledger, and Balance Sheet.
• Expenses & Budget: This feature allows businesses to manage their costs and budget more effectively. It provides insights into their cash flow, helping them identify areas to reduce unnecessary spending and optimize their finances.
• Product & Inventory: This feature offers businesses a streamlined approach to inventory management. It updates stock levels automatically, keeps all data in one place, and sends notifications to remind users of stock statuses.

Add-ons

• Invoicing: Businesses can use this feature to track and manage bills better. The feature provides invoice templates, centralized invoice databases, and automated invoicing.
• Tax Management: This feature helps businesses minimize the risk of making errors when conducting taxes by providing automatic calculations and easy tracking of past tax documents.
• Mobile App: Businesses can access important information about their needs and activities remotely with this feature. However, it’s worth noting that some features, such as invoicing, are only available on a desktop.

Advantages of Jurnal.id

Here are some benefits you can get from using Jurnal in your accounting.

Less human errors

Manually calculating accounting can result in errors due to mix-ups in accounting formulas or transposition mistakes. However, using an automated accounting tool can minimize mistakes and improve organization in your bookkeeping.

Web-based

As a web-based accounting software, Jurnal can be accessed from anywhere with an internet connection and a web browser.

Easy to use

This software includes a dashboard that presents data in different formats, such as bar graphs, pie charts, and lines. This makes it easier for users to comprehend their financial information. The software’s data entry automation makes it user-friendly for individuals without an accounting background.

Free trial before purchase

Mekari allows users to try the free version of Jurnal for 7 days before subscribing to the full version. Upon expiration of the trial period, users will receive a reminder asking if they want to purchase the full version or decline.

Integration into various marketplace

Jurnal integrates with multiple Indonesian online marketplaces, enabling automated data entry for each sale. This streamlines record-keeping and allows centralized management of transactions across all marketplaces.

POS Integration

Jurnal can work with various point-of-sale (POS) systems in Indonesia. The system is designed to automatically record transactions, which reduces the possibility of errors or fraud. With Jurnal, businesses can monitor their daily sales and revenue to ensure accuracy.

Limitations of Jurnal.id

While Jurnal offers benefits to businesses, it is crucial to be aware of certain limitations associated with the software.

It does not cater to large corporations

Jurnal offers multiple accounting features that are suitable for small to mid-sized businesses. The software may not be ideal for large corporations with extensive supply chains and manufacturing operations, as the software lacks certain features.

It is not a full ERP

Jurnal is primarily intended as accounting software. Users who wish to access the full range of ERP capabilities must subscribe to other Mekari solutions offering additional features such as CRM, payroll, and omnichannel.

Price

Jurnal is offered under three packages: Pro, Enterprise, and Enterprise+. Users can choose to subscribe to these packages annually or quarterly.

Each package’s pricing depends on the features and functionalities offered, with costs ranging from Rp5.388.000 to Rp14.028.000 per year. Furthermore, Jurnal provides free implementation to its users.

Companies that use Jurnal.id

Eatlah

Eatlah is a food and beverage company based in Indonesia with 26 branches across Jakarta, Bandung, and Semarang. The company faced difficulties manually creating financial reports, given a large number of stores they have to manage and the limited staff.

To address this challenge, Eatlah decided to leverage Jurnal’s automation capabilities to streamline financial reporting processes and monitor the financial performance of all its branches in real-time.

KLAR

KLAR produces clear aligners with the help of orthodontists. They previously managed their stock manually using Excel and Google Spreadsheets, leading to miscalculations and warehouse recording challenges.

Jurnal helped them automate their financial processes, providing better visibility into each division, stock transfers, and production of goods. This streamlined KLAR’s operations and improved its financial management.

Alternative software to Jurnal.id

Here are some other software can be an alternative to Jurnal.id.

Impact

Impact is a comprehensive ERP solution designed for small to mid-sized businesses. With multiple modules available, Impact offers a range of features to automate and optimize various business processes.

One of the modules offered by Impact is its accounting module. This module organizes data and automates financial processes while providing real-time financial reports. It’s fully integrated with other modules like sales, purchasing, inventory, and manufacturing.

In addition, Impact is optimized for Indonesian companies and can handle taxation processes per Indonesian regulations (e-Faktur, PPh, etc). Furthermore, it fully complies with GAAP standards to ensure accurate financial reporting.

Regarding pricing, Impact requires a one-time payment of Rp99 million and an implementation cost of Rp50 million.

Accurate

Accurate is an accounting software that can process a company’s transactional data and is available as both a software application and an online web-based platform.

However, it’s important to note that this software does not cover all business operations and cannot be customized for specific use. Businesses must purchase additional features like CRM and POS from different vendors, as Accurate does not integrate with other software solutions.

Pricing for Accurate is available on a monthly subscription basis, with the cost set at Rp222.000 per month for one user. Additional users can be added at the expense of Rp22.200 per month.

Xero

Xero is a cloud-based accounting software that offers features such as financial statements, invoicing, budgeting, stock monitoring, and project management.

It has three subscription packages: Starter ($25/month), Standard ($40/month), and Premium ($54/month). The pricing varies depending on the size of the business and the features required. However, the Starter package has limited features, so most companies get the Standard package.

Compared to other accounting software that offers pre-made templates, users may find it more challenging to customize invoice templates in Xero.

MYOB

MYOB is an accounting software suitable for various business types, from small to large-scale operations. The software has a simple interface, making it user-friendly even for beginners.

MYOB uses an automatic system that structures and ensures the accuracy of financial reports by directly inputting financial data. MYOB’s automatic reporting features, such as profit and loss, balance sheet, and trial balance, can be customized to your accounting needs.

MYOB also provides financial comparison reports, such as sales reports, profit and loss, and balance sheets. However, MYOB is limited because it cannot be used for multiple companies. Therefore, if you have a subsidiary, you cannot use MYOB from the leading company.

Bee Accounting

Bee Accounting is a software that helps businesses manage their financial matters and is available in desktop and cloud versions. The software is designed to be user-friendly and suitable for individuals unfamiliar with accounting systems, making it a good option for beginners.

The online multi-branch feature allows business owners with multiple branches to monitor transactions and finances across different locations using laptops and mobile devices.

The free version of Bee Accounting, called Bee UKM Series, has limitations such as a monthly revenue cap of Rp100 million that resets to zero every month and a maximum of two cash/bank data entries.

Conclusion

In summary, Jurnal by Mekari is an ideal accounting solution for small to mid-sized businesses looking for a cloud-based system that allows them to access their finances from any location.

Jurnal streamlines workflows and automates operations typically handled by human accountants and bookkeepers with easy-to-use software that integrates seamlessly with various online marketplaces and POS systems in Indonesia.

However, larger businesses might require a more advanced ERP system. Impact is an ERP solution that offers automated transaction processing, allowing companies to streamline their financial activities.

Impact’s accounting module generates real-time financial reports based on automatic journal input for every transaction, allowing businesses to create budgets for every Chart of Accounts (CoA) and analyze actual expenses.