I know from SuiteCRM that an Account is a general term for any touch a company makes. This can include a vendor, an active client, a prospect, etc. A Contact is usually a person who is connected to a specific account. So, what’s the reasoning/use for a “leads” section if we already have a generic Accounts section that allows one to differentiate between account types?
A lead is more than a propect and less than an account.
A prospect is a marketing target. Prospect data may come from anywhere. From CRM itself but also from data you imported. A lead requires company and person data and might lead to an opportunity. Example: data you gather during an exhibition. People interested in your product and who would like more information and who gave you explicitely their contact data. But it doesn’t mean they are seriously interested. Some will be, oht er won’t. Having leads apart from accounts allows you to have a clean cut between customers and “might become” customers. Accounts are high quality data, leads are first contact data. It makes it easier to report.
Keep in mind: You are not compelled to use leads module. CRM implementation shall reflect your business processes and be a tool to have those processes run properly.