Accounts Receivable: How to Get Paid Faster and Simplify AR

Key takeaways

• Recognize that accounts receivable is the money customers owe you and a core driver of your cash flow.
• Send invoices promptly and set clear payment terms so you get paid faster.
• Offer easy digital payment options so customers can pay in a few clicks.
• Automate tracking and QuickBooks Online syncing to cut manual work and reduce late payments.

What is accounts receivable?

Accounts receivable is the money your customers owe your business for goods or services you have delivered but have not yet been paid for. It sits on your balance sheet as a current asset because you expect to collect it soon.

Getting paid on time is vital to sustaining your cash flow and keeping operations running. Strong accounts receivable habits are how you make that happen.

Accounts receivable vs. accounts payable

Accounts payable is money you owe to vendors and suppliers. Accounts receivable is money owed to you by customers.

One is money coming in, the other is money going out. Tracking both gives you a clear picture of your cash flow.

How the accounts receivable process works

The accounts receivable process turns a completed sale into cash in the bank. It usually follows a few clear steps:

1. Agree on payment terms with your customer before you deliver.
2. Send a clear, accurate invoice as soon as the work is done.
3. Track each invoice so you know what is open and what is overdue.
4. Follow up on late payments with friendly reminders.
5. Record the payment and reconcile it against the invoice.

How to get paid faster and simplify accounts receivable

Collecting on time gets hard fast. With hundreds of transactions, you are re-sending invoices, waiting for checks, matching funds, and chasing late payers. A few simple habits make getting paid easier:

• Send invoices right away, with clear due dates and payment terms.
• Offer easy digital payment options so customers can pay in a few clicks.
• Send friendly reminders before and after the due date.
• Automate tracking so you always know what is outstanding.

When paying is simple, more customers pay on time, which steadies your cash flow and cuts the hours you spend chasing payments.

How Melio makes speedy and efficient accounts receivable possible

Accounts receivable has moved toward a more digital experience, and customers expect to pay online. Yet for many small businesses, getting paid still relies on paper checks in the mail. That is where Melio comes in.

Melio is an easy online solution that helps shorten and streamline the cycle between issuing an invoice to your business customers and getting paid for it. Melio offers a free Go plan that includes up to five free ACH bank transfers a month, with paid plans for higher volumes, and getting paid by bank transfer is free.

By optimizing the payment process, Melio makes it easy for your small business customers to pay their bills. Here is how it keeps things simple:

• Create a personalized payment link and payment page.
• Import a single invoice or a batch of invoices.
• Forward them to clients in a few clicks.
• Let customers pay from one screen, with no need to sign up to Melio.
• Get paid by ACH straight to your account, without sharing your bank details.

When you eliminate obstacles and offer a seamless, Venmo-like experience, more customers pay on time and your fulfillment rate climbs.

Sync your accounts receivable with QuickBooks Online

Melio syncs two ways with QuickBooks Online, so every payment updates your books automatically and you skip double data entry. You can export a .CSV of your customers and invoices, upload them to Melio, and see payments sync back to your QuickBooks Online account in real time.

Start accepting payments from your small business customers today

Automating your accounts receivable simplifies payments for your small business customers. With intuitive tools, flexible payment choices, real-time tracking, and a transparent, collaborative experience, Melio helps encourage speedy and efficient payments. Sign up for Melio and start getting paid faster today.

Accounts receivable FAQs