Accounts Receivable, Ignored Once Again!

Accounts Receivable (A/R) is the most ignored application by software developers.  It has been superseded by . . . . .

Accounts Receivable (A/R) is the most ignored application by software developers.  It has been superseded by other applications with fancy acronyms.  A/R is still there but pushed to the background.

A/R is the cash register for your company.  EVERYTHING your company sells must pass through A/R.  It is instrumental on how this information is posted to your G/L.  If it weren’t for poorly designed software, A/R could provide you with useful tools to help manage this revenue!

Typically, developers follow the folly of summarizing monthly activity into the arcane design based on “Buckets.” Yes, once again they took the easy way out and eliminated all chances of having meaningful analysis data!  Did anyone ever explain to them that “Buckets” are subject to errors?  Evidently they did, as they all seem to include elaborate methods of reconciling “Bucket” totals once reports don’t cross-foot.

Speaking of reports, those supplied with the system are extremely limited in their ability to provide useful information.  For example, aging reports can’t be modified at run time.  Even worse, Balance-Forward customers can only be reported as to what amounts are current or non-current.

Reporting periods have to be closed before charge and payment amounts for a new period can be posted.  Timing of closing a period, especially at year-end, becomes a CRITICAL!  Your company’s cash position hangs in the balance until your position is current!

There are many more issues to address than what I have mentioned.  It’s the same old story.  Developers are lazy, and their sales staff should be selling used cars or doing Infomercials for cheap jewelry on some shopping network!

In this day of tight money your company’s cash analysis is extremely important.  Can you count on your A/R, or does it leave you hanging in the balance?