A robust accounting structure is a must for any given business. If you own or run a business, one crucial financial facet is the accounts receivable management.
For the uninitiated, accounts receivable is the amount owed to your company for the products or services you’ve provided. This is usually recorded in the general ledger account, considered part of the current assets and listed on your company’s balance sheet. For instance, you record an account receivable when you deliver a truckload of goods to a client and expect the client to pay within 30 days.
From the looks of it, accounts receivable management can be a daunting process. That is where the use of firm management software comes into play for a more streamlined process. That said, below are four features of accounts receivable management software you may want to invest in.
1. Organized tracking and reporting
In this time and age, manual tracking and recording of accounts receivable are considered outdated. It can be daunting to use an Excel spreadsheet to track financials and ask for payments from the very beginning and be consistently diligent in every step of the process. To save you from the hassle and stress, you can utilize accounting software that can make the whole process of tracking, recording, and reporting more organized.
2. Payment management and flexibility
When it comes to accounts receivable management, ensuring consistent payments from clients is a top priority. It’s best to use a potent, solid platform that allows you to go over your accounts and get your invoices to clients as seamlessly as possible. If you can have rooms for payment flexibility in terms of timeframe and payment method, that’ll be great as well for clients. As long as you have a unified platform to track and record payments, then you’re good to go.
3. Clear communication and client engagement
Client management is quite challenging, and clear communication is key. It can somehow be difficult to send emails or make phone calls to clients asking for payments every now and then. It’s best to have a place where you can engage with your clients right on the platform. With a unified interface, you can constantly communicate with your clients, send invoices, and ask for payments, if necessary. As you can handle multiple tasks in one place, it makes the whole accounts receivable management more efficient and streamlined.
4. Early payment reminder and reinforcement
When it comes to accounts receivable management, getting payments from clients is the ultimate goal. That said, veer away from the old school way of reaching out to clients, asking for payments, and manually tracking finances. It’s best to have a centralized interface with a reliable platform that allows you to constantly notify clients about payments and make the necessary reinforcements when they fail to do so.
Investing in a professional cloud-based firm management software can make a difference in your accounts receivable management. That said, make sure to consider the four features outlined above—organized tracking, payment management, client communication, and payment reinforcement.
Ultimately, accounting software can provide a convenient platform for everything that you need to manage your accounting process, engage with clients, and track your finances.
If you’re looking for a small business accounting software, get in touch with us to see how we can help.