Guide to Receivables Tracking System

Let your software do it all for you

QuickBooks, Microsoft Small Business Accounting and other popular programs all come with comprehensive A/R management capabilities.

I recommend: QuickBooks does it all. Easily generate A/R reports. Create estimates or invoices in seconds with automatic formulas that ensure accuracy. Once info is entered, use it over and over again. Just click on a customer to see all balances and transactions. Customize reports for unpaid invoices, A/R aging and others. See industry-specific solutions for manufacturers, wholesalers, professional services firms, contractors, non-profits and retailers. Microsoft Small Business Accounting, designed for companies with 25 or fewer employees offers a quick, out-of-the-box A/R tracking solution.

Outsource your A/R management system

You can avoid the A/R task altogether by handing it over to outside specialists.

I recommend: ABC-Amega's "SoftCall" receivable management solution provides consistent follow-up on outstanding invoices and account reporting. Lason has an end-to-end A/R management solution from the point invoicing details are available through posting of cash received. Diversified Credit Services and GC Services also offer receivables management services. MediBase provides A/R management for health care providers.

Establish a receivables management policy and plan for your business

It's like a business plan for managing and tracking your receivables.

I recommend: Start with this simple How Effective is Your Receivables Policy quiz from American Express. Then develop your policy with ideas from 10 Steps to Effective Collections, Avoid Delinquent Accounts and Know the Collection Laws.

Install specialized collections software

Want a software solution dedicated to just receivables? No problem.

I recommend: Collect! streamlines collection, administration, reporting, letter writing and other A/R functions. This is the same software that some smaller collection agencies use. Microsoft Small Business Financials is a sophisticated financial management program for companies that need more than basic accounting software.

Fine tune your receivables management system

There are all kinds of potholes that even the best receivables system can encounter.

I recommend: Credit-and-Collections.com is a place for people who want to learn more and network with others about collections. The resources section is packed with links that cover every imaginable contingency.