The way businesses operate has changed drastically over the last decade, and accounts receivable is no exception. With the rise of ecommerce, the traditional accounts receivable process has had to evolve in order to keep up. So, what’s the difference between ecommerce and traditional accounts receivable? Let’s take a closer look.

The Basics Of Accounts Receivable

Before we explore the differences between ecommerce and traditional accounts receivable, let’s take a look at the basics. Accounts receivable is the money a business is owed from its customers. It is typically tracked using an accounts receivable ledger, which records all the money owed to the business and how much is outstanding.

Read more: What Are The Key Metrics For Ecommerce Accounting?

In traditional accounts receivable, the amount due from customers is tracked manually. The customer is invoiced, and then the business has to wait for payment. This process can take weeks or even months, depending on the payment terms.

The Rise Of Ecommerce Accounts Receivable

With the rise of ecommerce, traditional accounts receivable has had to evolve. Ecommerce accounts receivable has a number of advantages over traditional accounts receivable, as it allows businesses to automate the process and track payments more efficiently.

One of the main advantages of ecommerce accounts receivable is that it allows customers to pay electronically, via credit card or other online payment systems. This makes it easier and faster for businesses to get paid, as they no longer have to wait for customers to send in a check or visit their offices to make a payment.

Another advantage of ecommerce accounts receivable is that businesses can easily track payments and manage their accounts receivable ledger. This makes it easier for businesses to stay on top of their accounts receivable and quickly identify any overdue payments.

The Benefits Of Ecommerce Accounts Receivable

Ecommerce accounts receivable offers a number of benefits to businesses, including:
Faster payments: Ecommerce accounts receivable allows customers to pay electronically, which means businesses can get paid more quickly.

Easier tracking: With ecommerce accounts receivable, businesses can easily track payments and manage their accounts receivable ledger. This makes it easier for businesses to stay on top of their accounts receivable and quickly identify any overdue payments.

Improved customer service: Ecommerce accounts receivable allows businesses to provide their customers with a better payment experience. Customers can pay electronically and quickly get confirmation of their payment, which makes the process smoother and more efficient.

Improved cash flow: Ecommerce accounts receivable helps businesses improve their cash flow by getting paid faster. This can help businesses manage their finances more effectively and ensure they have enough cash on hand to pay their bills on time.

Read more: How To Protect Ecommerce Financial Data

The Bottom Line

Ecommerce accounts receivable is a great way for businesses to streamline their accounts receivable process and get paid faster. It offers a number of advantages over traditional accounts receivable, including faster payments, easier tracking, improved customer service, and improved cash flow. So, if you’re looking to improve your accounts receivable process, ecommerce accounts receivable is definitely worth considering.