Best Practices To Manage Accounts Receivable Management Software

Accounts receivable management software is used by businesses to automate their accounts receivable activities. This helps them achieve the maximum revenue recovery in terms of outstanding debts and customer payment cycles. It also helps in keeping a check on customer delinquencies, with the help of reminders, automatic invoice generation, and so on. It is an application that provides solutions to manage and collect payments from clients. This accounts receivable management software can be used by small and large firms!

1. Outlining clear billing

Make an approach to your billing procedure with transparency and consistency. Do the process recording so that every person in the company follows the same procedure. The billing procedure should include billing periods, invoicing dates, information to be included in the invoice, procedure of recordkeeping, and follow-ups.

2. Setting credit & collection policy

You may or may not be interested in making the credit card available to some of the clients. If you are doing this, set the credit card policies before time to avoid the extension of credit to some clients. This will make it easy for every person in your business to decide if the credit needs to be extended on request.

3. Using electronic billing

Don’t go with paper and snail-mail billing, or paper checks. They can be easily lost and consumes lots of time in tracking. Switching to an electronic invoicing system to make payments easy for clients! Integrate your billing and payments in this Accounts receivable automation strategy to automate the record-keeping.

4. Being proactive

Having a clear process in place, you can be aggressive about payment collection. Make a procedure where you have encouraged getting in touch with the client on the day when the payment gets delayed. In this way, you will be aware of the unpaid balance quickly and have a clear way to pay money.