There are businesses who deliver their products and services to clients even it wasn’t fully paid yet. This sum of unpaid amount is called accounts receivable. Being quick and prompt in your collection are the essential steps to efficient management of unpaid accounts. Aside from that, using updated accounts receivable software helps a lot in managing, collecting and tracking invoices more conveniently. These are what people usually look for when purchasing accounts receivable software.
AR Ledger
The accounts receivable ledger is a list of customers and how much they owe the company. It should contain essential details about the transaction such as reference number, amount to be paid, date issued, customer contact details, and so on. A good AR ledger should be able to update information on an invoice while you receive payments on accounts.
Aged Listing
One of the best ways to organize your accounts collection is by categorizing them into an aged list. You may sort invoices according to the duration of their payment term. For example, the first column is for 30 day accounts, next is for 30 to 60 day accounts and the last one is for more than 60 days. You will be the one to decide which style suits your strategy better. This way, you have an insight into the amount you’ll be expecting certain times. You also get to know which categories need a more collective effort.
Printing Customer Statements
Being able to print statements for each customer is another convenient feature of AR software. With a few clicks, you can now have a detailed printout of a customer’s statement of accounts. You can then send this to them to remind them of their payment obligations.
Mail-Merge Collection
This serves as a simple reminder to a customer about an outstanding obligation. You can set this depending on the age of their terms. Sending a reminder email a few days before the due date helps increase the chances of customers to pay on time.
Check with an accounts receivable automation provider to know which solution suits your company. Meanwhile, here are some additional features that are great to have in your accounts receivable software.
Report and Track
With built-in reporting and tracking systems, you have an insight into the efficiency and performance of your collection strategy. You can change or upgrade your collection strategy based on the monthly report given by the software.
Additional Charges
When your software has this feature, you can automatically impose interest charges to those clients who pay late. Although it may increase their credit, having extra charges can encourage a customer to pay on or before the due date.
Statistical Analysis
Having software that can provide a detailed statistical report regarding receivables helps a lot in managing accounts. Comparing statistics across months gives a lot of implications regarding your accounts collection.
Nowadays, almost everything is done with the help of technology. Unlike before that business is done by paper and pen, now it is made more convenient by software and apps.