Accounts Receivable Management Software

accounts receivable management software

Accounts Receivable Management Software is more than collecting the overdue bills. Rather, it encompasses the entire process of receiving monies for goods or services sold. Small companies generally engage one person to handle all the accounts. While large corporations have different people to handle the many phases of accounts receivable because they deal with many clients and can afford to carry more outstanding accounts for a long periods of time.

Sales force management software is really helpful in setting and maintaining the client’s account records. This information may come from a sales receipt, or a sales contract. Contact information such as names, addresses and phone numbers are compiled and entered into accounts receivable management software is organized and stored for later use. This information makes billing for a client possible and used for future sales. It would be beneficial to ask the regular and continual clients to update this information regularly, other infrequent customers should be asked to update changes every time they make a new order.
A bill is produced after the sales are made using the customers’ record as mentioned on the client account records. Bills should be sent to clients on a regular basis and include such things as the date mentioned on the bill, a product’s description, the price of each item, any additional fees or taxes and a due date. Penalties for missing the due date should be listed on every bill, as well as instructions on where and how to send a payment. A due bill should be sent with every billing cycle in case if accounts are not cleared before every next billing. When the clients forward the payments it is essential to post them to the right accounts. Each payment is identified either by account number or client ID in order to be posted accurately. This job is crucial as it would be difficult to track a wrong-posted payment and correct it, particularly if you have to deal with hundreds of payments every day. Each company is different and will have policies and procedures in place to handle accounts receivable for their respective industry.