Automating Accounts Receivable with Bill.com
What small business owner doesn't want to get paid faster!
For many small business owners the collections process is one of the most important functions in their business. In many cases it also one of the most time consuming.
There two common problems that we see when reviewing our client's billing and collection processes. The first is that the data needed is not readily available. In many cases the client is using an out of date time and billing system that relies on a lot of manual input to create invoices and then those invoices have to be manually inputted into the accounting system. In later posts we will be discussing some software solutions to address those issues that our clients have implemented including TSheets and BillQuick.
For this post however we are going to focus on the second common problem, the collection process. In a perfect world once the bills go out, as soon as your clients receive them they pay them in full and timely. In most cases, that expectation is just not realistic. Your employees have to dedicate time to reviewing unpaid invoices, sending second notices, depositing payments, posting payments etc and as we discussed in our previous post about automating accounts payable with Bill.com, the process is very paper focused.
Here are some of the highlights regarding using Bill.com to automate your receivables:
Bill.com can email or send via postal mail invoices to your clients. Reducing time spent internally printing invoices, stuffing envelopes and mailing.
Email automatic overdue invoice reminders for unpaid invoices.
Ability to set up a white labeled payment website where your customers can pay you securely and quickly. You have the ability to accept ACH payments, credit card payments and even PayPal.
Don't want to accept PayPal or Credit Cards due to transaction processing fees? No problem, you can set up your payment website through bill.com to only accept ACH payments for only $0.50 per ACH transfer.
Do your customers pay the same monthly amount on a reoccurring basis? With Bill.com you can set up both the reoccurring invoice and an automatic monthly ACH debit for those fees.
Note - Depending on the integration established with your accounting software all of the above are sync'd either automatically or on demand with your accounting software. Even if your accounting software doesn't directly integrate with Bill.com, accounts receivable and payment information can generally be imported to exported from Bill.com using .csv files. No data entry!
Mike is just a technology focused beancounter who says everyday "there has got to be an easier way to do this!" Click here to learn more about him.
At Loiselle & Company CPAs, Ltd. we specialize in creating cost effective accounting systems for small businesses that take advantage of cutting edge technology. Contact us today at 401-300-2345 or info@loiselleandcompany.com to find out how we can help your small business.
