To understand the utility of the Accounts Receivable Software, you need to first understand the concept of Accounts Receivable funding. Invoice factoring, as Account Receivable funding is also called, is a financial service that allows a business to sell its invoices and outstanding receivables to financing or funding companies who purchase these at a discount, or less than the face value of the receivable. The advantage of this deal is that you, as the owner of the company, get instant cash; and to the financing company is that it collects the receivables on your behalf at the full face value. This means that the entire responsibility of collecting the cash is now on the financing company.
Free of the need to collect funds, you can now concentrate on the more pressing needs of the business. Also, you get the opportunity to extend services to a larger number of customers without asking for cash on delivery.
Given that the advantages are many, Accounts Receivable need proper and effective management. While one way is to outsource the work to another company, the other is to use Software to maintain a record of the transactions and the clients involved.
The Software allows you to maintain a master record of customer information, and separate files also. You can locate the information by fields such as customer number, phone number, or even company name. You can assign credit limits, make extensive notes, and also provide notes and statements to customers.
Apart from this, the Software can be used to keep a record of the transactions, charges, and payments. Depending on the requirements, you can use the Software to apply the same payment to any number of records. In addition, you can prepare reports on collections, write-offs, and control policies. Besides, you can print any messages for promotional campaigns, greetings, and sales.