Accounts receivable: Manage a collection system in your company

Accounts receivable within an accounting department are a very important topic when it comes to knowing the financial situation and liquidity of a company. Knowing, managing and having technological tools can be a great differentiator for increasing collection efficiency and maintaining portfolio health. In this article, we will talk about the importance of proper receivables management, examples of accounts receivable in a company and we will focus on the Mobilvendor Accounting Module. This module has recently received a significant update that makes it easier for portfolio managers in companies the way they manage their accounts receivable.Join us to discover how these tools can transform the efficiency of your company and your financial health.Learn how Mobilvendor can improve the efficiency and sales of your company or business hereAccounting automation systemContents hide 1 What are accounts receivable? 2 Importance of managing accounts receivable3 Mobilvendor Accounting: The #13 Receivable Software .1 Benefits of Having Management Software4 Types of Accounts Receivable: An Example in the Retail Industry5 Conclusion What are receivables? Accounts receivable are amounts of money that a company is entitled to receive from its customers for the sale of goods or services on credit. When a company sells a product or service, and the customer, who may be another company, often accesses credit to pay for the products or services within 30, 60 or 90 days. The amount owed by the customer is recorded as an account receivable in the company's accounting records. In short, accounts receivable are an essential part of a company's financial management, ensuring that the money owed by customers is collected efficiently to maintain the company's economic stability. Importance of managing accounts receivableThese accounts are considered assets, since they represent money that will enter the company in the future. It is essential to manage them efficiently to ensure healthy cash flow, which helps to keep the company operating without interruption. A good accounts receivable system, such as Mobilvendor's accounting module, allows companies to keep track of who owes money, how much and when they expect to receive it, making it easier to collect debts in a timely manner. To effectively manage accounts receivable, it is crucial to have analytics tools and dashboards, such as those offered by the Mobilvendor Analytics Module. These instruments provide a clear, real-time view of the status of accounts receivable, allowing companies to quickly identify patterns, trends and potential problems. By using interactive dashboards, financial managers can make informed decisions based on accurate and up-to-date data, making it easier to implement effective collection strategies and ensuring stronger financial management.MobilVendor Accounting: The #1Mobilvendor receivable software is the leading accounting software for managing receivables, providing distributors with advanced tools to manage their financial operations more efficiently. The latest software update introduced a key feature: the ability to split sales invoices into installments, allowing different payment periods to be established for the same invoice. Previously, invoices generated receivables with a single payment term, which limited flexibility for both distributors and customers.Advantages of having management softwareUsing accounts receivable management software such as Mobilvendor offers several advantages, here is a summary of the best advantages of accounts receivable functionality:Financial flexibility: allows customers to pay in installments, adapting to their financial capabilities.Better collection control: facilitates monitoring and management of outstanding payments more efficiently. Reduction of defaults: minimizes the risk of bad debts by establishing clear payment deadlines. Process automation: simplifies the management of accounts receivable by automating the fractionation of invoices. Improved customer relationship: offers more convenient payment options, increasing satisfaction and loyalty. Types of accounts receivable: An example in the retail industryIn the retail industry, receivables are usually managed through invoices issued to customers for sales carried out on credit. Traditionally, these invoices generated a single receivable with a specific payment term. However, the new focus on financial flexibility has prompted a significant upgrade in accounts receivable management systems. The implemented improvement responds to the need of distributors to offer more flexible payment options to their customers. Now, distributors can divide their invoices into multiple installments, allowing different payment periods for a single invoice. Not only does this provide customers with the ability to better manage their payments, but it also improves the distributor's liquidity by providing more timely collections adapted to the customer's financial capabilities. Here are some examples of scenarios that can happen to you in your retail business with accounts receivable:Selling appliances in installments: An appliance store sells a washing machine for $1,200. With the new system, the customer can pay in four monthly installments of $300. This makes shopping easier for the customer and ensures a constant revenue stream for the retailer, who can use the system to monitor payments and send reminders.Buying clothes with flexible payment dates: a boutique offers a flexible payment scheme for new season garments. A customer buys clothes for $600 and pays in three installments: $200 at the time of purchase, $200 the next month, and $200 the next. This attracts more buyers and improves the management of store collections. Buying furniture with interest-free installments: A furniture store allows the purchase of sofas for $2,000 in five installments of $400 without interest. The new system makes it possible to create the invoice and assign payment terms in installments, ensuring that payments are recorded and managed efficiently. ConclusionEffective management of accounts receivable is essential for the success of companies, especially in the retail industry. Mobilvendor Contable facilitates this process by allowing invoices to be divided into installments and offering personalized payment terms, improving liquidity and strengthening customer relationships. Investing in software that facilitates the management of accounts receivable is the best idea to manage accounting efficiently and ensure business growth. If you want to take advantage of these advantages, we invite you to contact a Mobilvendor advisor to learn how our system can improve the efficiency and sales of your business or company.