Frequently Asked Questions

What is Accounts Receivable?

Accounts receivable (AR) are the outstanding bills (or money owed) from a business’s clients. Since these invoices are cash to be received, it’s recorded as an asset on the business's balance sheet. Businesses can maintain a healthy cashflow by operating with an efficient accounts payable and accounts receivable process.

Why is accounts receivable important?

If a company has a receivable, a sale has been made but the money has not been collected from the purchasers. While having payments is a good problem to have, the AR process can be tedious, especially if there are recurring invoices that need to be sent and no efficient way to do it.

The accounts receivable process

It’s important for businesses to remain afloat by keeping a greater inflow than outflow, so what’s the problem? The problem lies in the collections process as accounts receivable is dependent on what your customers pay. If a customer defaults on a payment, it forces you to accept a loss.

It may sound easy, but in reality, it’s anything but. Why is that?

  • You sell a good or service and now you have to invoice. Do you have your own invoicing system? Do you need to buy one?

  • Your customer decides he wants to continue buying from you. How will you set up the recurring payments?

  • It’s collection time, you’re wondering where your money is. How will you keep track of it?

There are a few things that can go wrong with AR, especially if you don’t have the right process set up for it. Bill.com offers a simple automated accounts receivable solution that helps you invoice digitally, set up recurring payments, and keep track of all of them in your dashboard.

Receivables made easy with Bill.com

You sell a good or service, and now you have to create an invoice. Instead of paying for costly invoicing services that requires time to customize it to your business and additional time on mailing and tracking your payments, Bill.com offers an automated receivables solution that’s as easy as 1, 2, 3.

  1. Invoices created on our platform are automatically entered into a template that’s easily customizable with your logo (done in settings). Each invoice lists all details necessary, from customer, amount, due date, payment terms, and a comment option, it’s all readily available for you to input.

  2. Invoices can then be sent to your customers via email, an easy and fast way for customers to receive payment notifications.

  3. Invoices are now easy to track with our payment tracker. See when the invoice is: sent, accepted, approved, payment incoming.

Recurring payments for accounts receivable

Bill.com automated accounts receivable also offers the option to invoice for recurring payments. Schedule a payment ahead of time and choose the frequency, so it’s one less invoice for you to worry about.

Accounts receivable via ePayments

Now clients can pay you via ACH, our fastest payment method. Convert all your customers to use our platform and all payments can be sent directly to the bank. Receive by check, credit card, or ePayment. Doing your accounts receivable with Bill.com can also save you money. ACH transactions are only $0.49 per payment instead of 2.9% per payment.

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