Track money coming into your business and never miss a payment.
Accounting software can help you to track accounts receivable and anticipate problems before they happen.
First, set targets for the next 6 to 12 months to track your accounts payable and receivable in order to avoid shortfalls. Then, note seasonal variations like heating bills increasing during the winter. Don’t forget to factor in fixed and variable costs and be realistic about your forecasts.
Send out automated invoices to customers and clients promptly, and chase overdue bills. Be clear about your payment terms—30 days is standard. Get to know your customer payment dates and don’t ignore delays because a customer who hasn’t paid up might be about to go out of business.
If you know what’s in stock and what you need to reorder, you’ll avoid tying up your cash in too much stock. To achieve this, reconcile your stock records at the same time as your bank account—be it weekly or monthly.
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 favorably.
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.
Get in the habit of reviewing your utilities, subscriptions, and general expenses once a quarter. It’s quite 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 left unchecked.
Accounting management software helps you identify potential cash flow problems in advance by updating your cash flow forecasts and monitoring market conditions. You should also consider if your customers or suppliers are in financial trouble and take action if needed. If you’re worried, talk to your accountant, investor or business mentor before a small problem becomes an urgent one. Protecting your cash flow gives you better buying and negotiating power, which could save you money long term. If you know about a shortfall in advance, you can also extend credit if needed.
Our accounts receivable system report shows how much you’re owed at any point in time by customers. You can use the report to keep track of:
Typically accounts receivable software challenges include:
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 Accounts Receivable report will be updated automatically.
For more information, please read our guide.
Accounting software can automatically reconcile your incoming payments, meaning you don't waste time manually transferring data.
Track your income, expenses and more using a single solution. Easily see the state of your accounts receivable and what money is coming in on one helpful dashboard.
Accounting software has everything you need to keep your business running smoothly. Find out more to see which solution best fits your business.
