The difference
A citation is primarily a business mention or listing. A backlink is a clickable link from one webpage to another. Some citation profiles include backlinks, but the two concepts are not interchangeable.
Why the distinction matters
Building directory profiles is not a substitute for earning useful editorial or local links. Likewise, link acquisition does not fix inaccurate business listings.
Use both for different jobs
Citations help establish and distribute business identity data; backlinks can help with authority, referral traffic, and discovery. A balanced local strategy treats them as complementary assets.