How to Properly Tackle Accounts Receivable in the QuickBooks World?

Carrie KahnGuest Contribution0 Comments

Let’s talk about Accounts Receivable when using QuickBooks

Collecting money for your business can be time consuming. Sending paper statements and waiting for clients to mail in a check is a thing of the past. If you are still using the snail mail method, STOP! Everyone loves collecting payments after a job is completed. You can now collect accounts receivable with automation and ease.

The most popular feature that we have in QuickBooks today is e-Invoicing! Everyone loves the ease of clicking a pay now link to pay an invoice, using ACH (Automatic Clearing House) or credit card payment options. The benefits are tremendous because the customers pay it quickly and in the background tasks are being done automatically.

In QuickBooks, the invoice is being marked paid and the payment is being auto batched with other similar credit card payments. Then all you have to do is click “Banking” and make the deposit. There are many different options you can manipulate such as, who you allow to pay you, whether you turn on/off ACH or Credit Card by invoice, by customer or have it available for everyone.

All these awesome features are now included in the new QuickBooks Payments when used with QuickBooks Desktop, Pro, Premier, Enterprise and QuickBooks Online as it includes e-Invoicing. However this feature sometimes falls short of what our customers need, so you can add on Bill & Pay or Bill.com app as another solution. When eInvoicing falls short we have a few apps to recommend that fill in the gaps.

Here are some of the common problems customers have with accounts receivable:

RECURRING ACH

You can setup recurring ACH charges for invoicing monthly customers. This is a feature you will not find in e-Invoicing at this time but Bill & Pay and Bill.com both have this feature. There is a very low fee for ACH vs credit card processing fees so many businesses like this feature.

PAYMENT PLAN

With Bill & Pay, you can setup a payment plan with your customer and have them agree to it via electronic signature. This is especially helpful for invoices of a large amount that need to be spread out over time. Within this payment plan the customer can choose between credit card and ACH then have the payment deducted automatically.

STATEMENT WITH PAY NOW LINK

This is a very popular request. Everyone wants a detailed statement and now you can send with a pay now link using Bill & Pay. If your customers like paying from a statement, like a private school where charges are added throughout the month, for example school lunches, you can receive an itemized statement.

AUTOMATIC BATCHING

Bill & Pay and e-Invoicing both use QuickBooks Payments and do the automatically batch to make reconciling easy and avoid errors. Bill.com uses their own merchant service account so this feature is not available. This is very helpful when you have a huge list of payments that are batched together in one day. While recording your daily deposits in Quickbooks, you simply click to the left of the date in the payments screen below to make your deposit.

QB Reconcile

 

 

 

 

 

 

WEBSITE LINK

Bill & Pay and Bill.com allow you to add a link to your website so that your customer can click to pay you instantly. Currently, e-Invoicing does not have this feature.

SOLUTIONS

I share this easy to read and understand Matrix to compare e-Invoicing with the other apps mentioned. Click here to review the matrix comparing email invoicing with the pay now link.

If you simply need a quick pay now link feature and offer the flexibility of ACH and or Credit Cards, then e-invoicing will work for you. e-Invoicing is FREE with QuickBooks Payments. Please note, Bill & Pay and Bill.com have extra charges to use their programs. If you need more features such as ACH Auto Billing, Auto Reminders then consider Bill.com and Bill & Pay. If you want to keep your QuickBooks Payments account and have the smooth auto reconcile feature, then consider Bill & Pay.

Bill & Pay is a feature rich, customizable solution for managing accounts receivable while integrating with QuickBooks. One of the best examples that makes Bill & Pay so powerful, is the ability to send a detailed statement with a pay now link and create a payment plan with your customers while remaining PCI compliant. So now that you know how to get paid faster, start using the tools!

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