Accounts Receivable Software Key Terms

Understand key terms about your basic accounts receivable software

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.

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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.

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.

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.

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.

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.

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.

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