Improve the return on investment of accounts receivable software by ensuring staff are fully trained and have all the skills necessary to utilize the advanced features. The basic functions are easy to understand but the reports and data extract tools require more detailed instructions to use successfully.

Ask your accounts receivable to set up a presentation of one feature each week from the accounts receivable software. Focus on reports, graphs, data import or extract processes to encourage them to expand their usage of the software. Follow the three steps below to enhance the benefits of the software.

1. Take courses to improve accounts receivable software understanding.

2. Use accounts receivable software analytics.

3. Read accounts receivable software books.

Action Steps
The best contacts and resources to help you get it done

Improve your knowledge of accounts receivable software

Learn to use accounts receivable software effectively to get the maximum benefit. All account receivable software packages come with a training manual. Review this material first, to evaluate the current level of your skills and to decide what features you need to focus on.

I recommend: Several accounts receivable software packages are covered in the course material. High Tech US offers online courses for Peachtree Accounting that covers the accounts receivable software module. Net a Work offers AccPac training seminars on the accounts receivable software module.

Implement accounts receivable software analytics

Review the types of accounts receivable analysis programs available. The benefits to an accounts receivable accounting software is to improve the effectiveness of the collections process and improve cash flow. Write down the names of the accounts receivable software packages that you are using and invest time to identify the metrics to measure the effectiveness.

I recommend: Castel offers integrated analytics to provide enhanced reporting, metrics, charts and graphs to improve the quality of data management of your accounts receivable software applications. TEC provides a free evaluation and comparison of enterprise software, which includes the accounts receivable software module.

Read accounts receivable software program information

Increase your knowledge of A/R software by purchasing accounts receivable software information. There are many accounts receivable software programs books and resources available. When selecting resource materials for your accounts receivable tool, check for quality images and step by step instructions that are easy to follow.

I recommend: Review the accounts receivable software reference books available to assist you. Accpac Training provide Accpac manuals for the accounts receivable software and Microsoft provides a great deal of information to maximize the effectiveness of their accounts receivable software.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Accounts receivable programs often require additional time and resources to learn. Invest the time and discover all the features included in the software. It will be well worth the time and effort by reducing the time required to provide reports and graphs.

Every business needs an accounting system that creates reports to help you manage your business. Creating a chart of accounts is one of the most important aspects of that system. A chart of accounts is a listing of all accounts in a ledger, each with a reference code. Three things to know:

1. Corporations typically have these five categories in their charts of accounts: assets, liabilities, net assets, revenue (income), and expenses.
2. Although very small businesses may only need three digits to number their accounts, it’s better to have more digits to allow for future growth and to follow any specific industry standards.
3. Your chart should reflect all the various transactions of your business with as much detail as possible. Add accounts where needed. It will be more difficult later to go back and add details.

Action Steps
The best contacts and resources to help you get it done

Use software that guides you step-by-step

Three widely used software accounting packages have templates for charts of accounts that are a great way to get started.

I recommend: Microsoft Small Business Accounting is good for small business owners who use Microsoft Office applications. QuickBooks is a favorite among software reviewers for meeting basic accounting with easy-to-use graphics. Peachtree by Sage is another good choice.

Start with the basics

If you're starting out and want a simple, affordable system, try QuickBooks Simple Start 2006. Creating a chart of accounts is a snap with this entry-level system.

I recommend: Newegg.com sells it for $69.99 (retails for $99.99).

Buy industry-specific software

If you are in manufacturing, retail, construction or nonprofit, there's accounting software that will help you track the right information. Customizing a chart of accounts using industry-specific software can save time and headaches later.

I recommend: QuickBooks Enterprise Solutions: Industry Editions are available for contractors, manufacturing and wholesale, nonprofit, professional services and retail. The specialized navigator gives you one-click access to tasks and features commonly used in your industry.

Get the freebie

If you're pinching pennies, try using the free software you can find on the Internet.

I recommend: Free Accounting Software offers 100 percent free software which you can download and use. It also includes a help section.

Study samples for ideas

Analyze other companies' charts of accounts to create you own. Ask professional organizations in your field to show you what other businesses your size use.

I recommend: Check out the sample chart at LSWG, a Maryland-based accounting firm. Department of Health and Human Services also has sample charts in PDF files.

Go to the experts

If you need unconventional solutions to your accounting needs, you may need more than the popular software solutions. Get online help from certified public accountants.

I recommend: Outsource all your accounting needs to The Accounting Department, which can customize a chart of accounts and send all reports back via the Internet.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  There's a trade-off between simplicity versus being able to generate historical comparisons. Fewer accounts make your chart simple. However, a category such as 'miscellaneous' that is later categorized in more detail doesn't give historical context.
• •  Check tax requirements as certain accounts must be included, such as travel, entertaining, and advertising.
• •  It's easier to use a standard list of accounts that comes with accounting software, and then delete the accounts you don't need and add new ones.

Explore the different accounts receivable software packages available for your business. Every company, large and small, needs to keep track of its customers, sales and payments. Accounts receivable software is designed to manage this important information and provide reports to help in decision making.

Look at the types of credit customers that you currently have to determine exactly what your requirements are. Select a system that is easy to use and provides the types of reports that are most helpful to you. Follow the three steps below to achieve this goal.

1. Download specialized accounts receivable software.

2. Try integrated programs with accounts receivable software.

3. Take a course in accounts receivable accounting software.

Action Steps
The best contacts and resources to help you get it done

Test accounts receivable software

Write a list of your account receivable software requirements. Commonly listed features include client list, accounts receivable aging report, sales report by period and percentage change comparison reports. Accounts receivable software applications are common in most businesses and perform two essential services: managing the sales information and issuing invoices for payment.

I recommend: Specialized accounts receivable software often has specific features and functions that are not available in the more bundled accounting software packages. Download a trial version of Vormittag Associates retail accounts receivable product or RKom's product to evaluate.

Use integrated programs with accounts receivable software

Review the functions and features included in your accounting software package to evaluate the quality of the accounts receivable software applications included. The basic functions of accounts receivable are consistent across all industries and the A/R software module included in the accounting package may meet all your requirements.

I recommend: Discuss the costs and benefits of your existing accounts receivable program with your accounting staff. The A/R software modules provided with PeachTree or Quickbooks can be downloaded for further testing and review. Both software packages are well known, established products that have lots of reports and the flexibility to meet most business needs.

Learn how to use accounts receivable accounting software

Yield savings in staff time and resources by providing access to training on accounts receivable programs. Look at the course offerings at your local college for courses that cover the accounts receivable software basics. Time invested in these courses are well worth the effort and result in better quality work product.

I recommend: Learn all the features of your accounts receivable accounting software by registering for a course. Course are available from Universal Class for most accounts receivable software packages. Investigate the course offerings available through the Online Training Directory. Focus on courses for the software package that you are using.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Accounting receivable software is a widely used tool to manage customer data and payments. Select a software that meets your current and future needs to gain the most benefit.

Accounts receivable software not only can help you organize the cash coming into your business, it can actually improve client account fulfillment. By implementing a good accounts receivable system, you'll be able to stay on top of outstanding invoices and adjust client accounts accordingly. Learn how to use some of the basic software options, such as restrictions and allowances, and find out how a multi-currency software option can save your international company time and money.

Action Steps
The best contacts and resources to help you get it done

Balance forward

A balance-forward program in accounts receivable software allows customer payments to be applied to an account, not a specific invoice. This option allows a customer's debt balance to be moved, or forwarded, from one month to the next without restriction from invoicing.

I recommend: Read how balance forward works at Medlin Accounting.

Aging schedule

The aging schedule creates a list of customers and all their past and present account information. The schedule is usually in spreadsheet form and shows delinquent accounts and other problems that you can clearly compare and review on one sheet.

I recommend: Toolkit Media Group explains the aging schedule and why it's important to have it in conjunction with accounts receivable software.

Restrictions and allowances

Restrictions are the limitations you can put on a customer's account, while allowances are the types of transactions you will allow in an account. Some accounts receivable software allows you to make customer-specific restriction and allowance designations.

I recommend: Cougar Mountain Software explains how restrictions and allowances work.

Multi-currency

Multi-currency refers to money in different forms. Accounting software that allows multi-currency transactions can be programmed to translate different world currencies into the domestic currency.

I recommend: Davis Business Systems explains how a multi-currency accounts receivable software program works.

Charge repository

A charge repository is an area where charges are flagged due to missing information. The area is usually separated so that the charges stand out and can be corrected.

I recommend: Quadax explains a charge repository space and how it can benefit accounts receivable software users. Scroll down about halfway on its site for more information on this key term.

Collection screens

Collection screens are information pages available in accounts receivable software used to compare and sort different customer account information. Screens can show outstanding bills, sort collections owed from largest to smallest amount or keep track of client collection calls and other information.

I recommend: View the explanation of collection screens at Vormittag Associates.