Accounts receivable automation is the process of automatically performing accounts receivable functions. Accounts receivable automation is typically a feature of great accounting software,like Sage Accounting for example, that automatically notifies clients and customers when payments are due.
While formerly mainly done manually and over the phone, there are now many ways to collect on accounts receivables. With accounts receivable automation features in accounting software like Sage Accounting, businesses can now have invoices and bills automatically emailed to customers, along with easy ways to pay online, in addition to being available to take payment manually or over the phone.
Accounts receivable software is a program that records, tracks, and automates accounts receivable processes to settle balances on accounts that owe you money.
Accounts receivable software helps you to automate the accounting function of reconciling your business bank account transactions against your business balance sheet in just a few simple steps:
Accounts receivable is cash inflows that a creditor is going to receive based on the credit period given to the customers. Debit means assets, and credit means liabilities. Account receivables represent transaction exposure in the form of cash inflow in the near future. Account receivable should be debited and should be visible on the asset side.
Accounts receivables are not considered an expense. However the cost of the goods and/or services rendered would be considered expenses.