The Use Of Accounts Receivable Software
Shuffling through paper invoices can be overwhelming, and it leads to inaccuracies. Your business needs a quality accounts receivable program to streamline your processes, give you a clear view of your numbers, ensure accurate records, and save precious time.
What Is Accounts Receivable Software?
Accounts receivable software performs accounting and financial reporting, which includes invoice processing, payment processing, automated email collection, eliminating manual errors, and keeping your cash flow statement sheets accurate. With Upflow for example, you can automatically send invoices, import your expense receipts and bills, and eliminate manual data entry tasks when you have accounts receivable software.
Drawbacks of Managing Accounts Receivable Manually
There are various roles that you need to perform daily to manage accounts receivable, including cash collections monitoring, evaluating the liquidity of receivables, determining to whom and when to extend credit, establishing and negotiating payment periods with clients, collecting cash receipts from receivables, and creating cash flow reports to give monthly updates to accounts manager. When you manually manage all these operations, it will slow down your business processes, cost you employee’s salaries, and eat up your precious time.
Automate Your Processes with AR Software
If you struggle with manual accounts receivable processes and your cash flow gets caught up in high DSO, you need to streamline your AR processes with automation. An accounts receivable software will effectively manage your operations and offer reports in real-time.
With AR software, you can create and send invoices quickly and eliminate the labor and expense associated with manually keying data. Its billing and payment portals will allow your customers to view and pay invoices 24/7.
Maintain accounts receivable files
Managing invoices manually is a tedious task, and when you have a big list of customers, the chances of human errors are inevitable. AR software manages all your accounts receivable files in an organized way and sorts them according to projects or clients.
Send automated emails
In manual operations, collectors have to send email reminders to every customer to pay their invoice. AR software allows you to automate accounts receivables process. Simply create the email template, add receivers and let the software do the rest. You can be confident and relaxed knowing that your account portfolio is being nurtured.
Analyze your data in real-time
AR software has a real-time dashboard that allows you to analyze data from various perspectives for a complete view of your business. You can see your customers' demographics, invoice analyses, recurring invoices, deferred revenue, and much more in the form of reports, graphs, and charts.
Get monthly financial reports
Get full reports of your monthly finances to investigate and resolve any irregularities and effectively manage your financial operations. You can also create forecasting reports to predict your future and get some money on hand for the short cash period.
Multiple options for payments
With accounts receivable software, you can also accept payments in different forms, such as checks, cash, electronic funds transfer credit card, PayPal, or other payment services. When you have multiple options for payment, you will likely get paid by your clients early.
Track cash flow
The accounts receivable system also enables you to track paid and outstanding balances to help you figure out your cash flow patterns. When you figure out the cash inflows and outflows pattern, you will be able to improve your cash flow.
Let ScottValleyBank Improve Your Financial Operations for Profits
When you integrate accounts receivable software into your financial operations, remember to choose the one that aligns with your company’s size and goals. Our experts will help you sift out the right software to manage your cash flow cycle better, increase accuracy, and improve customer relations.