Accounts Receivable Processing
Accounts receivable processing is more than just getting paid for your services, although that is the reason you started our business:
- Creating invoices – First you have to create a professional looking invoice that relates what you expect to be paid and what services you provided. Then you may want to have several invoice templates that can be used based upon the services that you provided. You have to decide how quickly payment is expected. Sure we want to be paid immediately, but that is usually not the norm in business. There are several options that are used in business: “Due upon receipt” (which is as it states expecting payment within a few days of the customer receiving the invoice), “Net 30” (due within 30 days of the customer receiving the invoice, and is the industry standard for payment. Additionally, no matter what your terms, most businesses will treat your invoice as “Net 30”). There are several other terms that can be used, but as stated before, most businesses will deal in these two main terms. We can create invoices, we have many templates that we can create for you and we will create invoices for you, based upon information that you give to us, ready to be delivered to the customer. Also, we can set-up recurring invoices for those customers that you the same amount periodically.
- Booking the invoices – Once you have created the invoice, you need to record the invoice in your accounting system. Out platform will automatically synchronize with most accounting software, allowing the booking of the invoice to be seamless and will require no intervention by you.
- Submission of the invoice – Once the invoice is created and recorded, you have to deliver the invoice to your customer, and time is of the essence. Remember those terms on the invoice. They are all predicated upon the customer receiving the invoice. We can deliver your invoices, online, email, or by paper, if that is what you really want.
- Monitoring the invoice status – Once the invoice has been issued and delivered to the customer, you need to know when you are getting paid. This can be problematic, as customers have reason to delay payment. Our platform allows you to see that the customers have viewed your invoice, so that the customer cannot claim that they did not receive the invoice, and can create automatic reminders for overdue invoices, reminding the customer that the invoice is overdue.
- Receiving Payments – This is the goal. Our platform accepts ACH, credit card, Paypal, and gives you an online portal (with your logo). ACH will be a flat rate (No more percentage fees)! With our electronic payment options,you can get paid up to 3X faster. Your customer can review your invoice and approve for payment on any device.As with the booking of the invoice the receipt of payment is also synced with accounting software.
- Sales taxes – Unfortunately, sales tax is now a part of the business environment. As a result of the “Wayfair vs. South Dakota” decision, now sales taxes are allowed to be assessed whether you have a physical present in a particular state. Accordingly, you are now responsible to:
- Assess – That is you need to charge the customer the appropriate sales tax, according to the sales tax rate of that state, city, or locale where the customer resides or the sale took place. If the customer has a valid sales tax exemption form on file with you, then this assessment can be waived.
- Collect – You are responsible to collect the tax that should have been assessed.
- Report – Each locale where you have done business, including “online sales” has the right to require a report of your sales and the tax collected.
- Payment – You are responsible to pay all sales taxes that are due, whether you assessed and/or collected or not.
We can help you with the Assessment, Sales Tax Exemption forms and Reporting.