Using Software to Tracks Accounts Receivable When You Have a Factoring Loan To attract new customers and keep existing customers happy, it is often necessary to offer them at least 60 days to pay their outstanding invoices. While that makes for good customer relations, it can be problematic for your own cash flow.
Accounts receivable financing allows you to get the funds you need now while still offering attractive payment terms to your customers. As long as your customers pay on time, it can be a win-win situation for both of you. However, you may need to invest in accounts receivable software to ensure that the factoring company you borrow from gets paid on time. Your software should have at least point of sale, accounts receivable aging and payables aging reporting, payables posting and payment posting capabilities.
In order for your software program to be most effective, you must choose one that is tailored to the size and type of your business. For example, if you operate a temporary staffing agency, it is not uncommon to wait 60 days or longer for your customers to pay invoices. It's just the nature of the business. You should select accounts receivable software that is as industry-specific as possible to ensure that you are staying on top of the money your company has coming to it.