How does accounts receivable software help businesses?

Discover how accounts receivable software can streamline your accounting processes.
OGL Software
July 1, 2024
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Woman using accounts receivable software

Accounts receivable is an integral part of a business. Discover how accounts receivable software can help to streamline the process.

Accounts receivable refers to the outstanding payments owed to a company by its customers or clients for goods and services. In short, it represents the amount of money your business is yet to receive from credit sales.  

This is a vital part of ensuring a business can function optimally. Unfortunately, managing accounts receivable can be time consuming for accounts teams and is susceptible to human error. Thankfully, accounts receivable software can help streamline the process.

So, how does this software work? In the following sections, we’ll explain everything you need to know about accounts receivable software. We’ll explore some of its key features and how it benefits businesses.

Why does accounts receivable matter to a business?

Efficient management of accounts receivable is important for the financial health and success of a business. To properly manage accounts receivable, a business needs to track and reconcile amounts owed by customers for products or services. Through this process, accounts teams ensure recorded figures align with customer invoices and payment records.

This means that a company with a robust accounts receivable management system will spot any errors in important financial records. By keeping accounts receivable up to date and accurate, businesses are better prepared for tax filings and audits, which minimises the risk of penalties or discrepancies.  

Accounting software on laptop

What is accounts receivable software?  

Because proper management of accounts receivable can be difficult, many businesses opt to use software to automate the process. Accounts receivable software connects to your bank feeds and enables you to identify any issues with transaction data. This allows your accounts team to drastically cut the amount of time they spend on accounts receivable issues and spend it elsewhere.

Main features of accounts receivable software

Depending on the provider or platform you use, there are some differences in accounts receivable software. Profit4 has a wide range of great features that make the process simple and optimised for your business…

Easily accessible financial data

Managing a business is all about reacting to business data and making good decisions. There’s nothing worse than trying to figure out how your business is doing financially, but then having to wait for a report from your accountant.

Profit4’s accounts receivable software allows you to access up-to-date financial information with just a few clicks. You’ll be able to see all your accounts receivable information at a moment’s notice, then make quick decisions to rectify any discrepancies or issues.  

Automated customer invoicing

Profit4 also allows you to automate the customer invoicing process. Not only will you be able to set up reoccurring invoices with a few clicks, but you’ll also be able to chase up any unpaid credit with automated reminders. This feature ensures you’re not missing out on payments, as well as creating stronger client relationships.

Real time payment tracking

Gain real-time visibility into payment statuses and outstanding balances with Profit4’s transparent dashboard. Track payments as they are received and monitor overdue invoices to ensure you get timely collections.  

Raise a PO in just a few clicks

With Profit4’s accounts receivable software, you can simplify procurement processes with the purchase order (PO) management system. In just a few clicks, users can create, review, and approve POs. This streamlines purchases and ensures timely fulfilment of orders.

Accountant using Profit4 accounting software on laptop

What are the benefits of accounts receivable software?

Reduces human error

Human error within accounts receivable management can lead to disruptions in your business. These can range from inaccuracies in financial reporting to more serious future consequences like penalties. With Profit4, the risk is minimised through an easy-to-use dashboard, unlimited workflows, and automated functions to make the process simple.  

Saves time

Managing the finances of your business is time-consuming – even for a dedicated accounts team. By streamlining your accounts receivable processes, accounting teams will complete tasks much faster and spend their time on other important matters.  

ERP Integration

Profit4’s accounts receivable software seamlessly integrates with wider accounting tools and ERP systems, offering you a comprehensive platform for financial management. Profit4 offers detailed insights into your finances and streamlines your entire financial framework, automating credit control processes and creating VAT reports directly within the system.

More than this, Profit4 also offers a variety of handy ERP tools. You’ll be able to optimise your inventory management with real-time tracking and automated replenishment, ensuring you always have the right products in stock to meet the demands of your business.  

Profit4 also features CRM functionality so you can manage customer relationships effectively, tracking interaction and identifying new opportunities.  

Secure cloud-based accounting

Switching to accounts receivable software might seem like it will pose some risk to the security of your information. However, with Profit4, there’s no need to worry.  

Every aspect of Profit4’s cloud-based software is protected, with bank feeds facilitated by trusted provider Envestnet | Yodlee. Using only transactional data from your account, they won’t have access to other parts of your business banking.  

Is accounts receivable software right for my business?

Accounts receivable processes can be difficult to manage. If you’re finding that your accounts team is struggling to make sense of your data, or you’re missing out on payments, then it might be time to automate the process.

While dedicated accounts receivable software is a good option for some businesses, they don’t always allow you the space to grow with them. An integrated ERP system is perfect for businesses that are scaling up.  

Streamline your accounts receivable process with cloud-based ERP software

Managing your accounts receivable doesn’t have to feel like a never-ending struggle. With Profit4, a fully integrated, cloud-based ERP software, you will get the tools you need to optimise your accounts.  

With multiple handy tools for manufacturers wholesalers and distributors, such as automated stock and credit control, you’ll never have to worry about losing track of your business operations. Profit4 has been designed specifically for UK stockists, wholesalers and distributors, with many happy users across industries such as agriculture, building supplies, catering supplies, merchants, and plumbing.  

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