Accounts Receivable Software
Guide to software for accounts receivable management
If you need to track monies owed to your company but don't require the full suite of modules offered by comprehensive accounting software, you can save some money by buying a simpler piece of accounts receivable software. Software for accounts receivable provides you with complete and customizable options that let you manage all stages of the billing process.
Capabilities of Accounts Receivable Collection Software
Accounts receivable software shares some features of billing software, in that both programs can generate both standardized and customizable invoices. Some programs also offer e-mail invoicing capabilities.
Additional features unique to accounts receivable software include the ability to bill recurring charges automatically, calculate applicable finance charges on outstanding accounts, track payments that are en route to you and accept and process credit card transactions. Advanced products also offer helpful supplemental features for companies that ship a high volume of goods, such as invoice shipping label creation, shipment tracking, and the ability to choose from various shipping options and estimate your shipping costs.
Some accounting programs also have analytics features that consolidate data and offer you multiple filters for viewing and analyzing it. Even if you own only a modest home-based business, accounts receivable collection software is extremely important to running a smooth operation.
Open-Source versus Licensed Accounts Receivable Software Products
Given the widespread use of accounts receivable software, you have your choice of open-source programs and licensed products. Both have their advantages and limitations.
Free accounts receivable software provides all the functionality users may need, provided they have a light to moderate volume of invoices. It doesn't cost you anything, but it is also typically limited in its range of features. You also need to run antivirus software before installing it unless you absolutely trust the source you're getting it from.
Licensed products have a more complete range of features, and manufacturers will provide you with superior customer service if you encounter any problems. You typically have the option to download licensed accounts receivable software or install it on your system from a CD-ROM. However, it does require a sometimes-considerable investment, which can be mitigated if you use a subscription service that charges you by month.