Track money coming into your business and never miss a payment.
Get paid what you're owed
Accounting software can help you track accounts receivable and anticipate problems before they happen.
How to manage accounts receivable
Keep a cash flow forecast
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.
Stay on top of payments
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.
Control your stock
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.
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 outgoings
Get into 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.
Anticipate problems before they happen
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.
Getting the most from our automated accounts receivable system
Keep track of numbers that matter
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:
How much your customers owe you
How long your customers have owed you money
Which of your customers owe you the most money
Due dates for sales invoices
Solve your accounts receivable software challenges
Typically accounts receivable software challenges include:
Not knowing how much customers or suppliers owe you due to incorrect data
Sending out invoices on time
Tracking payments against said invoices coming into your business
Providing payment methods that customers prefer
Manage accounts receivable and get paid what you’re 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 Accounts Receivable report will be updated automatically.
Find the Sage business software that best fits your business
Each company has its own set of ambitions, goals and markets, which is why you need a powerful, flexible accounting software. We’ve created a series of accounting software, so you’ll always have the financial support you need.
Sage Business CloudAccounting
Worry free cloud software for startups, micro, and small businesses looking to manage their finances and control cash flow.
Create invoices quickly and easily.
Give your customers access to a professional side of your business by enabling your Customer Zone.
Get an instant understanding of how your business is performing with customisable dashboards.
Ability to manage multi-currency transactions.
Manage your invoices and expenses on the move with our mobile accounting app anywhere, anytime.
Secure, reliable and trusted solution that gives you peace of mind.
3 key benefits of reducing spreadsheets in finance
The results are in—it’s time to replace spreadsheets with software designed for and devoted to finance activities. Spreadsheets have their uses for personal productivity and ad hoc analyses, but they can also become a barrier to effective finance processes for growing midsize companies when used inappropriately. Oftentimes, spreadsheets are error-prone, putting finance teams and entire businesses at […]
Taking a look back at the past few months, what has changed? What’s different from 2019? Of course, we can all point to so many changes, personal and professional, as a result of COVID-19. The real question is, will your future be better than the past? I believe it can be if you make an […]
Chemical manufacturing challenges in a post-coronavirus future
How should chemical manufacturers do business in a post-coronavirus world? With the challenges ahead, where does sustainability and green chemistry fit in? Products made by chemical manufacturers are often part of the supply chain upstream of other industries, such as food, medical, construction, transport, electronics, and clothing. It contributes to many of the consumer products […]