A large part of succeeding in the world of business is being able to keep track of your accounts receivable and ensuring that your clients pay up on time, or that the necessary charges are made in case of default. Accounts receivable refers to those accounts that have not been paid yet. They are sometimes referred to as trade receivables. Companies can use these accounts receivable as insurance or as collateral, since they are considered assets.
Some businesses that need cash outright resort to receivable factoring, a service that is common nowadays in business financing. Receivable factoring occurs when a company sells its accounts receivable to a factoring company at a discount, even if these accounts receivable have not matured yet. The factoring company becomes a principal, not a mere agent.
Whether you are a factoring company or not, you need to organize your accounts receivable or you’ll find yourself stripped of the cash needed to keep your business going. You could hire the services of an accountant and rely entirely on him to manage your accounts, or you can make use of software tools that can help you manage accounts receivable. There are numerous software companies out there offering systems that make collection way easier and faster. Plus, you can learn how to operate these systems yourself, so you can be a hands-on business owner.
- SIMMS Accounts Receivable is one such software tool. It can track receivables and apply cash received to the oldest invoice, or to a specified invoice. Not only does it store pieces of data, it can help you organize and transform them into business strategies. By helping you deal effectively with cash flow today, this software helps you face your future in business.
- Another accounts receivable software is available from ManageMore. It has an effective system for tracking incoming payments as well as for viewing account aging. It has a Customer Care view screen, where you can have instant access to all information regarding your customer’s accounts. You can even program the system such that your customers can be put on a credit hold status automatically if the invoices are not settled. It also features an automatic duplicate customer checking system, to avoid creating several accounts for the same customer.
- APPX Accounts Receivable, meanwhile, allows you to input a large amount of data regarding your customers and their accounts, as well as invoice and cash receipts data. You can visit their website and try their online demo. It can create individualize customer records.
There are many software tools out there that can help you manage your accounts receivable. Visit their web sites first and check their features before you choose one. Pick a software program that is easy to understand and navigate, yet effective in monitoring the status of accounts receivable and cash flow. Always choose software that provides copious storage for data and provides backup options, to avoid total loss of information in case your computers crash. With all these software tools, managing your business is a piece of cake.