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Accounts Receivable Software

Everything You Need to Know for Accounts Receivable

Account Payable vs Receivable

Account Payable vs Receivable

Accounts Receivable vs Accounts Payable

It's important to differentiate between accounts receivable and accounts payable, as they are both integral to a company's financial management.

Accounts Receivable: Company A provides goods or services to Company B on credit, so it records the bill in its accounts receivable column, indicating that Company B owes them money.

Accounts Payable: Conversely, Company B is waiting to pay for the goods or services it received from Company A, so it records the invoice in its accounts payable column, signifying its obligation to pay Company A.

Understanding the distinction between these two components is essential for maintaining accurate financial records and managing cash flow effectively.

What Are Accounts Receivable (AR)?

Accounts receivable (AR) is a crucial aspect of a company's financial health. It represents the outstanding balances from customers who have purchased goods or services on credit. In simple terms, it is the money that a business is yet to receive from its customers for the products or services provided. Here are some key points to understand about accounts receivable:

  • Current Asset
  • Credit Sales
  • Unpaid Invoices

Connect AR to Your Business

Connections to Customers & AP Portals: At PayToMe, we offer seamless integration with over 100 popular AP portals such as Coupa and Ariba, alongside customer portals for efficient invoice management and AR information retrieval.

Customer Portal: PayToMe’s accounts receivable invoice processing solution allows customers to access invoices, account statements, and make online payments in over 40 countries through a customer portal. It's designed to enhance customer relationships by providing easy and efficient payment options.

Connect Sales & Finance Team

At PayToMe, we recognize the importance of fostering collaboration between sales and finance teams. That's why our AR solution suite is equipped with tools designed to streamline communication and decision-making:

API Integration with Salesforce: Our seamless API integration with Salesforce ensures real-time sharing of collection notes between finance and sales teams. By keeping everyone updated on customers' receivables status and collection activities, this integration facilitates better business decisions and strengthens customer relationships.