Track money coming into your business and never miss a payment.
Get paid for what you are owed.
Accounting software can help you to track accounts receivable and anticipate problems before they happen.
How to manage accounts receivable
Keep a cash flow forecast.
You should initially set targets for the next 6 to 12 months to track your accounts payable and receivable in order to avoid shortfalls. Next step is to note seasonal variations like heating bills increasing during the winter. Do not neglect to include fixed and variable costs and be realistic about your forecasts.
Stay on top of all payments.
Send out automated invoices promptly to customers and clients and chase overdue bills. Be clear about your payment terms. Thirty days is standard. Get to know your customer payment dates and do not ignore delays because a customer who has not made payment might be about to go out of business.
Take control of your stock.
If you know your stock and what you need to reorder, you can avoid tying up your cash in too much stock. To achieve this, reconcile your stock records at the same time as your bank account, either weekly or monthly.
Stay friendly with lenders
Whether your small business is new or expanding, you may need the occasional cash boost from a bank or lender in the form of an overdraft, credit agreement, or revised accounts receivable terms. If you keep your bank and lenders updated about unforeseen outgoings or changes in forecasts, they’ll be more likely to treat a request favourably.
If your business is growing rapidly, seek access to a line of credit from a bank or financier, such as an overdraft or short-term loan. In many cases, banks are willing to lend to a business if they can see a draft service contract or letter of intent. Once the client pays, you can pay your debt.
Tighten up your outgoing cash.
Get in the habit of reviewing your expenses quarterly. It is rather common for a business to outgrow a service or tool only to continue paying for it without good reason. Similarly, smaller expenses can add up over time if they are left unchecked.
You should anticipate problems before they happen.
Accounting management software helps you to identify potential cash flow problems in advance by updating your cash flow movement and bank transactions. You should also consider if your customers or suppliers are in financial trouble and take action if necessary. If you are concerned, talk to your accountant, investor or business mentor before a small problem escalates into an urgent one. Protecting your cash flow gives you better buying and negotiating power which has the potential for you to save money in the long term. If you know about a shortfall in advance you can also extend credit if necessary.
Manage accounts receivable automatically.
Tracking of numbers that matter
Our accounts receivable system report shows the amount owed to you by customers at any point in time. You can use the reports to keep track of:
How much your customers owe you
For how long your customers have owed you money
Which of your customers owe you the most money
Due dates for sales invoices
Solving your accounts receivable challenges
Accounts receivable challenges typically include:
Not knowing how much customers or suppliers owe you due to incorrect data
Sending out invoices on time
Tracking payments against said invoices into your business
Providing preferred customer-payment methods
Manage accounts receivable and get paid what you are owed.
When your customer pays an invoice you can record this payment. This marks the invoice as paid and helps you keep track of any outstanding values. Your customer reports will be updated automatically.
Advantages of managing accounts receivable automatically
Get paid faster.
Accounting software can automatically reconcile your incoming payments which means less time wasted on manually transferring data.
Everything is in one place.
Track your income, expenses and more using a single solution. Easily see on one helpful dashboard, the state of your accounts receivable and what money is coming in.
Find the right solution wherever you may be on your business journey.
Accounting software has everything you need to keep your business running smoothly. Find out more to see which solution best suits your business.
Find the Sage business software that best suits your business.
Each company has its own set of ambitions, goals and markets which is why you need a powerful, flexible accounting software. We created accounting software so you can always count on the financial support you need.
Sage Business CloudAccounting
Powerful online accounting software, perfect for start-ups and small businesses.
Balance your books and control your business’ finances on the go
Accept and receive payments with multi-currency functionality (add-on required)