How to choose accounting software

Posted on 14th Dec 2018

Article By: Richard Morochove (Click to view full article)

Advanced Features

More advanced reporting and statistical tracking capabilities, along with flexibility in designing reports, can make your AR program even more powerful. For example, an adjustable form writer/designer can change the layout of customer statements, let you add graphics such as a company logo, and select fonts that match ones on your letterhead. While some AR applications use proprietary form writers that may take a considerable time to learn, others let you use popular applications such as Microsoft Word to design your AR forms.

Collections chores can be a big part of managing AR, depending on the nature of your business and your deadbeats, uh, valued clientele. Look for the ability to charge interest or add service charges on delinquent accounts receivable, which displays on customer statements. You may not have a lot of luck collecting these delinquency charges, but the threat of extra charges may induce some customers to pay up quicker.

You can also strengthen your AR by tracking actions taken during your collection efforts, along with customer responses, including promises to pay. Tracking your collections activity helps in follow-up efforts, when you can remind the delinquent customer that their “check is in the mail” promise from last month didn’t pan out. Some of these collections-based customer interactions are tracked in customer relationship management systems, which may offer a more comprehensive solution to tracking all customer contacts, not only those related to AR.

AR statistics can help determine if receivables are being managed effectively. Some AR applications will not only calculate aging statistics for the current period but will also keep track of them for several months back. Also look for graphs and charts of these historical statistics, which make it easier to see trends at a glance than trying to scan a mass of numbers.

As business moves from paper to electronic communications, look for electronic options in AR applications to become more important. This can include e-mail delivery of customer statements and the ability to import transaction records of electronic payments from customers.