Accounts Receivable Software For Business: Any business, modest or large, must manage its accounts receivable (AR). When done effectively, it reduces the chances of late or no payment from customers for your services or commodities. This improves cash flow and, consequently, the company’s financial standing. In addition, account receivable software can simplify AR processes. Centralizing, analyzing, and summarizing customer data is a fantastic option for remote teams, medium and large businesses. It aids in avoiding perplexity with spreadsheets and making intelligent decisions. This article discusses some of the market’s premier augmented reality (AR) software.
What’s Accounts Receivable Software?
Accounts receivable software is a program that helps businesses manage and automate their billing, payment collection, and other transaction-related processes. Depending on your requirements, the software can be deployed on-premises, as software as a service (SaaS), or in the cloud. In addition to financial and accounting features, some accounts receivable solutions provide inventory management and custom branding. As a result, the software aids expanding businesses in meeting their financial obligations and improving their market position.
AR Software Components
Principal components of an accounts receivable solution include.
Credit Collections Management
With the help of an account receivable solution, you can optimize the collections process to reduce DSO (days sales outstanding) and enhance relationships with your customers.
Invoicing
Send accurate invoices with different prices, tax rates, and discounts on time by creating an invoicing structure based on your requirement.
Payments & Payment Gateway
After integrating with a payment gateway, you can accept credit cards, ACH, debit cards, and other customer payments. Additionally, it ensures regulatory compliance (such as PCI-DSS) and simplifies account reconciliation.
Receivable Analytics & Reporting
Through reports and dashboards, you can obtain an in-depth comprehension of the financial condition of your business with an accounts receivable solution. Through insights, you can also make precise cash flow projections.
Claims & Deductions Management
Using an accounts receivable system, you can increase your profitability by identifying and resolving problems with invoices and late payments.
Customer Portals
You can decrease the need for customer service by providing customers with self-service portals that provide real-time access to their payment due dates, order history, and other information.
Accounts Receivable Software Benefits
A accounts receivable system provides several important advantages.
- It automates repetitive workflows and calculations, which reduces human error.
- AR software can expedite the identification and closure of invoices, thereby improving cash flow.
- By shortening payment cycles, billing automation and e-invoicing can help you save time. It also reduces the costs of publishing and distributing physical copies of documents.
- Business interactions can be enhanced by using the communication tools provided by accounts receivable software.
- When you have greater control over capital, you can make better decisions regarding investments, invoice collection, etc.
- It allows you to track the payment status of all your customers and automates the process of sending them payment reminders.
- The chances of the customer incurring additional costs due to late payments are reduced by timely invoicing, which also helps improve customer satisfaction.
- You can generate credit reports, segment customers based on estimated risk, and reduce credit risk.
- AR software reduces the chances of invoice-related disputes and enables collectors to resolve existing ones swiftly.
Features To Examine For In Accounts Receivable Software
The primary features of an accounts receivable solution include the following.
AR Ledger
To organize accounts and generate reports, your AR software must maintain an up-to-date inventory of customers with their payment due dates.
Secure Database
Well, there must be a centralized database that securely stores all information. To make data readily accessible, the software must also include search filters and advanced categorization options.
Customer Statements
This feature allows businesses to send customers electronic copies of their outstanding obligations. Reduce the chances of mismatches by averting manual entries.
Payments
Customers must have access to their invoices and be able to make prompt payments via various online methods and channels thanks to AR software.
Phone Call Management
Customers must have access to a prerecorded menu to view their current information. To avoid complications in the future, the software must transcribe and record conversations made by collectors to customers requesting payment.
Automated Emails
The accounts receivable system should provide templates and the ability to set up automated email payment reminders for customers. In addition, you must be able to attach documents such as invoices, purchase orders, and statements to emails.
Dispute Management
An accounts receivable solution escalates invoice disputes automatically to the appropriate employee or team. Additionally, it must keep track of all disputes so that you can address recurring ones. This enables businesses to convert receivables to cash rapidly.
Mobile-friendly
Accountants and collection agents can perform all duties on the go, around the clock, thanks to a mobile-friendly AR system.
Buying Accounts Receivable Software Considerations
Consider the following factors when purchasing an accounts receivable system.
Costs
You can choose your desired AR software based on your purpose and budget. For example, some accounting systems include numerous features for streamlining accounts receivables processes, but you may not require them.
Quick Processing
Your accounts receivable system must be able to manage the volume of invoices and data generated by your business. In addition, it must centralize all information and improve the efficiency of all processes, from invoice receipt generation to approval.
Online Payments
The software must support a variety of digital payment options and channels so that customers can pay swiftly via various channels.
Predictive Cash Forecasting
Your AR system must use trustworthy prediction algorithms based on your transaction history.
Security
Due to the sensitivity of financial data, the accounts receivable solution must employ bank-level security to prevent unauthorized access to customer information.
Integration Capabilities
The accounts receivable solution must be compatible with your employees’ accounting, productivity, and other tools.
Compliance
Your accounts receivable system must comply with regional government laws and regulations to avoid fines.
Best 10 Accounts Receivable Software For Business
Here are some of your business’s finest accounts receivable software options, depending on your specific purpose.
1. Pipefy
Pipefy allows businesses to automate recurring billing and manage collections to improve cash flow. Additionally, the dashboard can be customized to track the AR procedure. It integrates with QuickBooks Online, NetSuite, and FreshBooks, among others. With customizable analytics, you obtain insights that can be implemented to improve cash flow.
Features
- The shared inbox for centralized email management.
- Tracking of invoice status.
- SLA notifications.
- Invoice due date reminders.
2. FreshBooks
FreshBooks is a popular cloud-based accounting software that automates small businesses’ accounts receivable (AR) and accounts payable (AP) processes. You can track billable hours, generate invoices, and offer a variety of payment options to customers. It also integrates with FundBox and Tallyfor, and other accounts receivable software.
Features
- Automatic reminders for payments that are past due.
- Financial statements.
- Self-serve client portal.
- Multiple currency pricing.
- Automatic billing of late payment penalties.
3. Zoho Books
Zoho Books is an all-inclusive accounting solution that permits businesses to submit estimates, generate invoices, and manage payments. In addition, you can verify transactions before approval to prevent mistakes. The dashboard shows details like total sales, receivables, etc. In addition, the activity log report guarantees that you are always audit-ready.
Features
- Reconciliation of funds.
- Automatically collect periodic payments.
- Digital signature to prevent manipulation.
- Automatic reminders for payments.
- Supports payment processors such as PayPal, Stripe, and PayTabs.
4. CollBox
CollBox’s accounts receivable solution integrates with your existing cloud-based accounting software, such as Xero and Sage accounting tools, to identify unpaid invoices. You can view all overdue invoices and choose which ones to recover with a few clicks. Marketing agencies, construction firms, field services, etc., frequently employ it.
Features
- AR specialists and collection agencies as a service on demand.
- View of a past-due account.
- Gathering proposals.
- Tracking live status.
5. Wave
Wave accounting is a web-based invoicing & accounting solution that enables businesses to generate and submit invoices in multiple currencies using customizable templates. Payment terms can be set as per your requirement. In cases of delinquent customer accounts, you can also share invoices. This AR software is compatible with Windows, Mac, Android, and iOS.
Features
- Estimate to invoice conversion.
- Automatic payment reminders.
- Customer purchase history.
- Following up on payments and past-due invoices.
- Recurring invoices with auto-payments.
6. Chaser
The Chaser AR automation software is designed to assist you in maintaining customer relationships while recovering debts. You can synchronize your cloud-based accounting software with multiple collection cases. In addition, it tracks all customer communications and integrates with ZohoBooks, QuickBooks Online, FreshBooks, etc.
Features
- Account administration.
- Automatic invoice reminders for payment.
- Domain authentication.
- AR data upload.
- Payment portal.
7. BlueSnap
Businesses can design invoicing structures by their requirements using the BlueSnap software. The user-set custom criteria determine the late fee, and the app is then adjusted. It is pre-integrated with NetSuite, QuickBooks, and Microsoft Dynamics software.
Features
- Portal for self-service customer support.
- 100+ payment types.
- WYSIWYG invoice editor.
- eSignatures for estimates, contracts, etc.
8. YayPay
Businesses automate routine duties using the YayPay AR collections solution. It ensures prompt payment and enables the tracking of accounts receivable through reports. Using machine learning (ML), the software enables improved planning by anticipating payment behavior. In addition, it integrates with ERP, invoicing, accounting, and CRM apps to consolidate all accounts receivable information.
Features
- Communications background.
- Credit report cards that can be personalized.
- Flexible payment options.
- Reporting that is based on business intelligence (BI).
- Collections administration.
9. Fundbox
The Fundbox AR financing software integrates with your accounting software and automates the lending process via machine learning (ML). You can choose between a credit line for recurrent expenses and a term loan for one-time investments. In addition, it allows you to simulate scenarios with potential transactions. The Fundbox iOS or Android app can be used for mobile funding.
Features
- Quick approval decisions.
- Personalized cash flow forecasts and alerts.
- Standard protocols for security.
- Automatic installments are made.
10. Xero
Xero’s accounting solution streamlines AP and AR processes for businesses. This AR software enables real-time monitoring of accounts receivables and transactions in over 160 currencies worldwide. You can rapidly create orders and invoices based on inventory information that has been pre-populated. In addition, the details of invoices and payments can be viewed in a singular location.
Features
- Automatic payment reminders.
- Payment via GoCardless, Stripe, etc.
- Reconciliation of funds.
- Automatic sales tax calculations.
- Insights for fiscal well-being.
FAQs:
How Can Accounts Receivable Software Shorten The Time It Takes From Invoice To Cash?
Accounts receivable software automates the creation and distribution of invoices. It also enables the automatic transmission of payment reminders before the due date, reducing the invoice-to-cash cycle.
How Does Accounts Receivable Software Aid In Labor Cost Savings?
Depending on the business requirements, companies typically employ a specialist or a team to manage account receivable. Accounts receivable software automates manual tasks and accelerates processes, reducing employment costs.
Which Three Accounts Receivable Types Exist?
Accounts receivable, Notes receivable, and other accounts receivable are the types of accounts receivable. For example, short-term loans produce notes receivable, while credit sales produce accounts receivable. Other receivables include salaries and tax refunds, among others.
