Top 7 accounts receivable software
Managing accounts receivable (AR) is crucial for businesses aiming to maintain a healthy cash flow and financial stability. Efficient AR management ensures timely payments, reduces overdue invoices, and improves customer relationships. However, traditional methods of handling accounts receivable—such as manual invoice tracking and payment reminders—are time-consuming and prone to errors.
This is where accounts receivable software comes into play. AR software automates the invoice-to-cash process, enabling businesses to streamline billing, track payments, and gain valuable insights into their financial performance. Below, we provide an in-depth look at the top seven accounts receivable software solutions, exploring their features, benefits, and use cases.
What is accounts receivable software?
Accounts receivable software is a tool that automates the management of outstanding invoices and customer payments. It helps businesses track what is owed, monitor due dates, send reminders, and generate reports to optimize cash flow.
Key functionalities of AR software include:
- Invoice automation: Simplifies the creation, sending, and tracking of invoices.
- Payment tracking: Monitors incoming payments and matches them to the appropriate invoices.
- Collections management: Automates follow-ups and reminders for overdue payments.
- Reporting and analytics: Provides insights into accounts receivable performance, including aging reports and cash flow forecasts.
- Integration: Connects seamlessly with accounting, enterprise resource planning (ERP), and customer relationship management (CRM) systems.
Benefits of using accounts receivable software include improved efficiency, reduced errors, enhanced cash flow visibility, and better customer communication.
Why businesses need accounts receivable software
Effective AR management is critical for businesses of all sizes. Without a streamlined process, companies may face delayed payments, reduced liquidity, and strained customer relationships. Accounts receivable software addresses these challenges by:
- Reducing payment delays: Automated reminders and payment options encourage customers to pay on time.
- Improving cash flow: Real-time tracking ensures businesses can predict and manage their cash flow more effectively.
- Enhancing accuracy: Automation minimizes manual errors, ensuring accurate records and reporting.
- Boosting productivity: By automating repetitive tasks, businesses can focus on strategic priorities.
Top 7 accounts receivable software for 2024
1. Gaviti
Gaviti is a specialized AR software designed to optimize the invoice-to-cash process. It focuses on collections management, making it an excellent choice for businesses struggling with overdue invoices and delayed payments. Gaviti’s automation tools and analytics provide complete visibility into the collections lifecycle, enabling businesses to take proactive measures to improve cash flow.
Key features
- Customizable workflows: Automate collections processes with workflows tailored to your specific business needs.
- Invoice tracking: Real-time tracking of outstanding invoices to ensure timely payments.
- Automated communication: Sends professional payment reminders and follow-up emails.
- Advanced analytics: Provides insights into cash flow, overdue invoices, and payment trends.
- Team collaboration tools: Enables collections teams to coordinate effectively and prioritize tasks.
Benefits
- Improved collections: By automating reminders and follow-ups, Gaviti reduces the likelihood of overdue payments.
- Enhanced cash flow: Faster collections improve liquidity, helping businesses meet their financial obligations.
- Actionable insights: Analytics help identify bottlenecks in the collections process.
- Customer satisfaction: Professional reminders ensure a positive customer experience.
Ideal for
Businesses of all sizes that need a solution focused on optimizing collections and reducing payment delays.
2. FreshBooks
FreshBooks is a user-friendly, cloud-based accounting platform that offers a suite of tools to manage accounts receivable, invoicing, and expenses. Designed with small businesses and freelancers in mind, FreshBooks provides an intuitive interface that simplifies financial management.
Key features
- Customizable invoices: Create professional, branded invoices quickly and easily.
- Recurring billing: Automate recurring invoices for subscription-based clients.
- Expense management: Track business expenses and link them to specific projects or clients.
- Payment gateways: Accept payments through credit cards, ACH, and PayPal.
- Time tracking: Built-in time tracking for accurate billing of hourly projects.
- Mobile app: Manage your finances on the go with a robust mobile application.
Benefits
- Ease of use: FreshBooks is designed for non-accountants, making it accessible to everyone.
- Faster payments: Integrated payment options reduce payment friction for clients.
- Comprehensive features: Combines invoicing, AR, and expense management in one platform.
- Improved financial control: Offers basic reporting tools to help users understand their finances better.
Ideal for
Freelancers, consultants, and small businesses that need a simple yet effective platform for managing accounts receivable and other financial tasks.
3. Sage Intacct
Sage Intacct is a cloud-based financial management solution designed for mid-sized and large enterprises. It offers a wide range of functionalities, including accounts receivable, revenue recognition, and financial reporting. Sage Intacct is known for its scalability and ability to handle complex financial processes.
Key features
- Advanced invoicing: Automates the creation and distribution of invoices for large-scale operations.
- Multi-currency and multi-entity support: Ideal for businesses with global operations.
- Recurring revenue management: Handles subscriptions and recurring billing seamlessly.
- Customizable dashboards: Provides real-time AR metrics for better decision-making.
- Integration with ERP and CRM systems: Connects with existing software for streamlined workflows.
Benefits
- Scalability: Adapts to the growing needs of businesses, making it suitable for enterprises.
- Improved cash flow management: Real-time insights into receivables help businesses plan their finances effectively.
- Reduced manual work: Extensive automation reduces administrative burden.
- Enhanced reporting: Provides in-depth financial reports that assist in strategic planning.
Ideal for
Medium to large enterprises with complex AR and financial management requirements.
4. SAP Concur Invoice
SAP Concur Invoice is part of the SAP ecosystem, offering a powerful solution for automating accounts payable and receivable processes. It is ideal for businesses already using SAP products, providing seamless integration and scalability for global operations.
Key features
- Invoice capture and matching: Automates data entry and ensures accuracy by matching invoices with purchase orders.
- Payment scheduling: Manage payment timelines to optimize cash flow.
- Expense and invoice integration: Combines expense management with AR and AP processes.
- Mobile-friendly: Approve invoices and manage accounts on the go.
- Global capabilities: Supports multiple currencies and languages.
Benefits
- Enhanced efficiency: Reduces manual work by automating repetitive tasks.
- Improved accuracy: Minimizes errors in invoice processing and payment matching.
- Global scalability: Suitable for multinational organizations with complex financial needs.
- Increased visibility: Offers detailed insights into invoice statuses and payment cycles.
Ideal for
Large enterprises and multinational companies using SAP solutions for financial management.
5. Invoice2go
Invoice2go is a lightweight AR tool designed for freelancers and small businesses. It provides easy-to-use features for invoicing, expense tracking, and payment collection. The platform’s focus on simplicity makes it a great choice for users with minimal accounting knowledge.
Key features
- Custom invoice templates: Design invoices that reflect your brand’s identity.
- Mobile functionality: Create and send invoices directly from your smartphone.
- Payment gateways: Accept payments through PayPal, Stripe, and other gateways.
- Expense management: Track project expenses for accurate billing.
Benefits
- Ease of use: Simple and intuitive interface.
- Fast payments: Integrated payment options make it easier for clients to pay on time.
- Mobility: The mobile-first design allows for AR management on the go.
- Affordable: A cost-effective solution for small businesses and freelancers.
Ideal for
Freelancers and small business owners seeking an affordable and straightforward AR solution.
6. Plooto
Plooto is an all-in-one AR and AP platform designed for small to medium-sized businesses. Its focus on automation and security makes it a reliable choice for businesses looking to simplify financial workflows.
Key features
- Automated payments and collections: Streamlines payment and collections processes.
- Approval workflows: Customize workflows to align with your approval hierarchy.
- Fraud prevention: Built-in security measures protect against payment fraud.
- Bank integration: Connects with over 6,000 financial institutions for seamless reconciliation.
Benefits
- End-to-end automation: Reduces administrative workload, allowing businesses to focus on growth.
- Secure transactions: Provides peace of mind with robust fraud detection tools.
- Improved cash flow: Automation ensures timely collections and payments.
- Cost-effective: Offers comprehensive features at a competitive price point.
Ideal for
Small and medium-sized businesses seeking an automated and secure AR solution.
7. Centime
Centime focuses on optimizing cash flow by integrating AR management with cash flow forecasting. It provides businesses with a holistic view of their financial health, making it easier to plan and execute financial strategies.
Key features
- Cash flow forecasting: Predict future cash positions based on real-time data.
- Automated collections: Proactively follow up on overdue invoices.
- Integrated financial dashboards: Access a complete view of AR, AP, and cash flow metrics.
- Customer communication tools: Simplify engagement with clients through automated reminders and follow-ups.
Benefits
- Comprehensive financial management: Combines AR functionalities with broader cash flow insights.
- Proactive collections: Automated reminders improve payment timeliness.
- Enhanced visibility: Dashboards provide real-time insights into financial health.
- Ease of integration: Works seamlessly with accounting tools like QuickBooks and Xero.
Ideal for
Small and medium businesses prioritizing cash flow optimization alongside AR management.
How to choose the best accounts receivable software for your business
With numerous accounts receivable (AR) software options available, selecting the right one for your business can feel overwhelming. Each platform offers unique features tailored to specific business needs, so understanding your requirements and evaluating potential solutions carefully is key.
Key considerations
- Business size: Small businesses may prioritize affordability and simplicity, while larger enterprises need scalability and advanced features.
- Features: Automation, integration, analytics, and mobile accessibility are essential for most businesses.
- Budget: Assess subscription costs and ROI.
- Scalability: Choose a platform that can grow with your business.
- Ease of use: Ensure the software is user-friendly and provides adequate training and support.
By carefully evaluating your requirements and testing software through demos or free trials, you can identify the solution that best aligns with your business objectives.