Calculating account receivable has become easier today, thanks to technology.
The function of the account receivable software is to automate the invoicing and collections procedures of a business. This helps a business in different ways – increased accuracy, better management of cash flow cycle, better customer service, among others.
Read on to discover other importance of this innovation. You would also understand the features to look out for when getting A/R software.
3 Benefits of Using Account Receivable Calculating Software
Below are some of the importance of using accounts receivable software:
This software helps a business lower its administrative costs. It’s now outdated for a business to mail invoices and statements to customers. To send these documents via fax machines is also antiquated. Thanks to the digital age, accounts receivable software makes the processes are now automated. Costs on labor and materials like envelopes and papers were also reduced with this software.
- Better customer service
By communicating better with customers, more rapport is built. Using account receivable software makes this easier. On a screen more can be done. Emails are sent. Phone calls are made. Invoices are attached. Account information can be reviewed with ease. That’s not all; every communication is stored for future reference.
- Management of cash flow
With these account receivable software comes better cash flow management. Payment of bills and staff’s salaries are paid on time with an account receivable software. It prevents a company from dealing with cash liquidity problems.
This valuable software can also be used to remind customers about due payments. Invoices can be identified and sent on time to a business’s customers.
Key Features of an Account Receivable Software
There are different types of accounts receivable software today designed for different businesses, large or small. However, most of this software has similar features and goals.
Below are features to look out for when getting an account receivable software for your business.
- Invoice disputes
One main reason why most invoices are not paid on time is invoice disputes. Delay will always occur in payment whenever customers don’t agree with some invoices. Good accounts receivable software will provide proper dispute analysis and helps you easily address common disputes.
- Call management
One powerful way to make customers take action is to execute phone calls. Phone calls help you settle payments with customers faster. Look out for this feature when choosing an accounts receivable software. Make sure it also has the option to transcribe and record all audio conversations. An automated voice recorder is another good feature to consider.
- Easy documentation
Management of documents is another key feature to look out for in accounts receivable software. It helps you manage numerous documents with ease. When your documents (purchase orders, invoices, and statements) are in order, customers pay on time.
- Email management
You can automate emails to be sent to your customers with accounts receivable software. This makes tasks easier and faster. What’s required when working with accounts receivable software is your email template and other simple settings. And they are easy to create.
Software is known to help make work easier and faster, that’s not an exemption for calculating accounts receivable. The software improves the way you do business; it also connects you better with your customers. Finally, the account receivable software provides an effect a/r aging report. Besides, that’s the whole point of an a/r aging report.