With the growing demands of managing accounts receivable (AR), companies are turning to innovative solutions to make things smoother. This article is your guide through the AR software landscape, offering recommendations and in-depth insights to help you make the right choice.
What is Accounts Receivable Software?
AR software, or accounts receivable software, helps you manage finances efficiently. It's a financial software solution that helps automate the process of keeping tabs on payments from your customers, cutting down on manual work, and reducing errors, thereby helping improve cash flow management.
Let's dive into our list of top AR software solutions.
We'll get into the core details of each, discussing what's great about them and where they might need some improvement.
How is it different from an AP automation software?
Accounts payable automation software and AR solutions streamline different aspects of a company's financial operations.
Here's a quick breakdown of their differences:
AP automation software automates the accounts payable process, helping manage the money you owe to suppliers and creditors. Its functionalities include automated invoice and payment processing, vendor management, and compliance checks.
Receivables software helps automate the accounts receivable process, handling the money your customers owe. It includes features like invoice generation, payment tracking, credit management, and customer communication management.
Quick Rundown of the 10 Best Accounts Receivable Software
Best Accounts Receivable Software in 2023
1. Growfin AI
Growfin is an advanced accounts receivable management software, purpose-built for teams that manage high volumes of invoices and designed to streamline and optimize the receivables process collaboratively across various teams.
The platform incorporates AI and machine learning technologies to enhance various aspects of AR management – from collections to cash application.
Key features include:
- AI-powered Customer Health Score, which helps businesses assess the payment reliability and overall health of their customers.
- Predicted Pay Date, which provides accurate insights on when a customer is likely to make a payment.
- Automated Dunning capabilities, that lets you personalize your customer reach outs from end-to-end, and start, pause, or stop sequences whenever you need to.
- Accounts Receivable Portal for Customers, which enhances customer interaction and engagement during the collection process.
- Automated Cash Application, designed to further streamline the AR process through SmartMatch AI, ensuring timely and efficient cash posting.
- Complete visibility into your collections process, helping you track and stay on top of your DSO and cash flow patterns.
With these innovative tools, Growfin can significantly reduce your DSO by at least 20%, thereby enhancing productivity and working capital savings for you, making it one of the best accounts receivable solutions in the market.
- AI-Powered Predictions: Growfin's receivables software brings the power of advanced AI algorithms to the table, making super-accurate payment predictions.
- No more manual dunning: The software automates those pesky invoice reminders and follow-ups, so you don't have to chase down payments manually.
- Real-time analytics: With real-time analytics and reporting, you get the lowdown on your AR performance, helping you make actionable decisions.
- Integrates with anything: It plays nicely with your existing software, easily integrating with popular accounting and CRM systems.
- Personalization to the fore: You can customize templates for invoices and statements to keep your brand image looking sharp.
- Growfin.ai does not provide capabilities to automate invoices
- Additionally, the receivables solution does not offer a self-service payment portal
Best suited for
Growfin is well-suited for industries that handle a high volume of invoices and have complex accounts receivable processes.
- Technology and SaaS companies
- Wholesale and distribution
- Professional services
- Construction and real estate, and more!
Billtrust helps revolutionize and simplify the order-to-cash process, helping address the inefficiencies of traditional, manual, and largely paper-based AR systems. Billtrust's suite of services includes outsourced invoicing, electronic billing, a business payments network, and integrated payment processing solutions, all designed to streamline and automate B2B commerce.
- Multi-channel invoice delivery: It covers all the bases with multi-channel invoice delivery, ensuring your customers get their bills through their preferred channels.
- Payment processing: Billtrust flexes its muscles with robust payment processing features, making it easy for customers to pay.
- Cash application: Automation rules the day here, with cash application processes that leave no room for errors.
- Plug and Play: It's best friends with popular ERP and accounting systems, so your data stays synchronized.
- Account recovery: Users have reported difficulties when customers lock themselves out of the software, particularly with forgotten passwords or usernames.
- Customer support: Some users have noted the need for longer operational hours, especially for addressing problems that might arise late at night.
- Upload delays: Although described as minimal, there is a mention of a delay in uploading invoices which could be an area of improvement.
Best suited for
- Industries: The platform is prominently used in industries such as wholesale, building materials, construction, and machinery.
- Company sizes: About 31% of Billtrust's user base consists of small businesses (less than 50 employees) with revenues typically below $50M. The majority (50%) of its users are from mid-sized companies (51-1,000 employees) with revenues between $10M and $50M.
Kolleno is a financial operations platform that consolidates receivables, payables, payments, and reconciliation in one place. It provides AI-powered SaaS invoice management software and collection solutions aimed at accelerating client payments.
The Kolleno platform is designed to help small, medium, and enterprise-level businesses in various industries accelerate and track payments while driving a better customer experience. It streamlines credit control, ensuring faster and more consistent payment collection, and connects seamlessly with any business software.
- Collections: Kolleno shines in the collections department, giving you the power to create personalized communication workflows that work like a charm.
- CRM integration: It plays well with various CRM systems, making managing customer relationships a breeze.
- Dashboard: Kolleno’s dashboard is designed to be user-friendly, offering insights into collections performance that are easy to grasp.
- Learning curve: Features can be hard to understand, especially for those not familiar with such platforms.
- Issues with reminders: Users may encounter issues with setting up reminders correctly, leading to unnecessary reminders piling up.
- User-friendliness: The platform can be a bit confusing and not very user-friendly for those who are not tech-savvy.
Best suited for
Kolleno is adaptable to a wide range of industries and company sizes, making it a versatile tool for financial management and automation.
It is suitable for:
- Small and medium-sized businesses
- Large enterprises
The platform is suited for businesses in various industries, including:
- Facilities Management
4. Radius One
RadiusOne AR Suite is a solution aimed at optimizing accounts receivable operations. It integrates various receivable and payment modules into a unified business process, offering a suite of intelligent automation solutions. These solutions encompass e-invoicing, payments, collections, cash reconciliation, and credit risk management, helping simplify the AR processes for businesses.
- Smarty Pants Collections: Radius One offers intelligent collections workflows that help you get your priorities straight and automate collections tasks like a pro.
- Tech Harmony: It's a team player, integrating seamlessly with well-known accounting and ERP systems to keep your data in sync.
- Detailed Insights: Dive deep into your collections performance with detailed analytics and reporting.
- Customer support: Very slow customer support response for queries.
- Complexity and price: The platform is somewhat complex with a learning curve for new users, and the software is expensive for startups.
Best suited for
Radius One is designed for midsized companies across various industries, offering a complete order-to-cash solution. It's a robust solution that can handle a wide range of AR processes. The pre-loaded configurations based on industry-specific best practices make it an easy-to-deploy solution for various sectors.
Tesorio is a comprehensive AR platform that unifies cash data from disparate systems into a single, intuitive interface. It transforms traditional cash flow forecasting and collections processes by providing accurate, real-time predictions and actionable insights based on behavioral trends. The platform is designed to foster collaborative finance, helping businesses work together more effectively and grow through connected financial operations.
- Cash flow forecasting: Tesorio boasts robust cash flow forecasting capabilities, giving you the power to plan for different scenarios and make informed decisions.
- Collections workflows: The software streamlines collections workflows with automation, making sure nothing falls through the cracks.
- Software integration: It's friends with various accounting and ERP systems, making sure your data stays accurate.
- Limited data range: The widgets in the insights page could allow more data from a timing perspective than they currently do.
- Future dates: For picking future dates like 10 years ahead, users have to scroll all the way month by month.
- Difficult to customize: The customization of Netsuite and SFDC instances is challenging.
Best suited for
Tesorio is suitable for a variety of industries, particularly those in the B2B sector, requiring efficient cash flow management and accounts receivable automation. Its features cater to different use-cases, making it a versatile tool for companies looking to improve their financial operations, customer interactions in collections, and overall cash flow predictability and performance.
YayPay is an accounting software that offers a robust solution for account receivables and invoice management. It leverages a combination of real-time analytics, cash forecasting, AI, robotics, automation, and machine learning to ensure timely payments for businesses ranging from medium-sized to large enterprises. The platform is tailored to streamline automatic payment communications for unpaid invoices, offering seamless integration with various systems to facilitate efficient financial operations.
- Invoice automation: Yaypay automates invoice processing and reminders, putting an end to manual grunt work.
- Software integration: It plays nicely with popular accounting and ERP systems, ensuring smooth data transfer.
- Data insights: The platform serves up insights and analytics to help you track your AR performance.
- Workflows: are not set up to easily choose different billing contact choices (invoice, inquiry statements to different aliases).
- DSO: Calculation of DSO is set at a 365-day average only, with no options to view DSO averages by collector or get a 90-day average.
Best suited for
- Industries: YayPay is prominently used in the Computer Software industry, followed by Internet and Information Technology and Services sectors.
- Company Sizes: The platform is mostly utilized by companies with 1000-5000 employees and revenues between $200 million to $1 billion.
Synder is a cloud-based accounting software specifically designed for e-commerce businesses. It stands out as a comprehensive solution for automating finance management in real-time across multiple sales channels. Synder's platform is adept at recording, reconciling, and recognizing e-commerce sales and subscriptions, offering seamless integration with over 25 platforms like Stripe, PayPal, Amazon, Shopify, QuickBooks, and Xero.
- E-commerce integrations: Synder seamlessly integrates with e-commerce platforms like Shopify and Stripe, making it a perfect fit for online retail businesses.
- Auto-categorization: The platform automates transaction categorization and reconciliation, saving you time.
- Multi-currency support: Synder handles multi-currency transactions with ease, a big plus for businesses with international operations.
- No way to attach documentation: Users have noted the inability to attach relevant documentation, such as PDFs, to invoices.
- Limited email personalization: There is a limitation in customizing the text within the invoice email, which may not suit all business needs.
- Transaction limitation: Users have found the limitation on the number of transactions (e.g., 100 transactions a month) to be restrictive, especially for those slightly exceeding this number.
Best suited for
Synder is used by a diverse range of company sizes:
- Small Businesses (1-50 employees): 20% of Synder's user base.
- Mid-Size Companies (51-500 employees): 50% of Synder's user base.
- Large Enterprises (more than 500 employees): 30% of Synder's user base.
Upflow is particularly effective for fast-growing business-to-business tech companies, offering a blend of detailed analytics, systematic workflows, and modern payment methods to streamline the cash collection process. Upflow's platform is known for its ease of use and efficiency, providing businesses with a comprehensive view of their cash flow and customer payment behaviors in real-time.
- Invoice reminders: Upflow handles automated invoice reminders and tracking, ensuring those payments come in on time.
- Integrations: It integrates seamlessly with accounting software like QuickBooks and Xero.
- Singular view: Get real-time insights into your collections performance with Upflow's analytics.
- Emails marked as spam: Customers and agents often perceive emails sent via Upflow as spam because the sender's address is different (e.g., firstname.lastname@example.org), which can lead to communication issues.
- Email setup difficulties: Initially, setting up emails for each invoice sending can be challenging, requiring additional effort.
- Recognition Issues: There are instances where AI does not correctly read the customer's name on the invoice, necessitating manual completion.
- Lack of multi-bank integration: Previously, Upflow did not support linking multiple bank accounts to a single account, though this feature was anticipated to be added.
Best suited for
Upflow is used by a wide range of industries and company sizes, indicating its versatility and adaptability:
- Industries: It serves various sectors including staffing & recruiting, electrical/electronic manufacturing, logistics & supply chain, facilities services, e-learning, wholesale, human resources, broadcast media, and financial services.
- Company sizes: The software is suitable for small businesses (2-10 employees), medium-sized businesses (11-50 employees and 51-200 employees), and larger organizations (1,001-5,000 employees).
Versapay specializes in providing accounts receivable software that automates operations, streamlines financial processes, and reduces DSO and costs for businesses. The platform focuses on enhancing the customer experience and expediting payments, and it integrates a collaborative accounts receivable network to bridge the gap between suppliers and buyers with a shared digital experience.
- Secure and Seamless: Versapay provides secure online invoice presentation and payment options, helping enhance customer experiences.
- Integrations: It integrates smoothly with popular accounting and ERP systems.
- Sluggish performance: Users have reported disconnects between what their accounting software shows and what Versapay displays, along with sluggish search performance and issues with autopay ignoring open credits.
- Payment Limits: A significant limitation noted by users is the payment limits, which can be problematic for tenants with high rents that may exceed Versapay's thresholds.
- Auto Payment Issues: Some users dislike that open invoices dated on the day auto payments are made will also get paid.
Best suited for
Versapay is adaptable to various business sectors and company sizes. It is particularly suitable for:
- Industries: Manufacturing, distribution, and commercial real estate, among others.
- Company sizes: Primarily serves mid-market and enterprise-level companies, but is also open to businesses of all sizes.
Gaviti is a comprehensive AR platform designed to optimize the invoice-to-cash process for businesses, and they particularly target SMEs. It serves as a cutting-edge AR management platform that empowers collections teams to expedite and increase the rate of invoice payments. The platform achieves this through a suite of features such as automating personalized dunning emails, perfecting task management, and offering data-driven insights for enhanced financial operations.
- Collections automation: Gaviti excels in collections automation, allowing you to create custom workflows to optimize collections efforts.
- Integrations: It integrates seamlessly with popular accounting and CRM systems.
- Data insights: Gaviti provides insights and analytics to help you track collections performance.
- Lack of Android App: Some users miss an Android app for Gaviti, which they believe would make money management more convenient.
- Challenges with QBO Workflow Tags: There are issues with QuickBooks Online workflow tags, requiring support from the customer service team.
- Balancing Customer Contact: Users found it challenging to find the right balance between contacting customers too frequently and not enough.
Best suited for
Gaviti offers solutions tailored to the needs of several key industries:
- Business services
- Wholesale & distribution
- Transportation and logistics
- Company sizes
Gaviti is designed to accommodate a wide range of company sizes, including:
- Small businesses
- Medium businesses
- Large businesses
Choosing the Best AR Automation Software
Selecting the right AR automation software for your business depends on what you need and what your priorities are.
Here are some key factors to consider when making your decision:
- Business Size: Consider the size of your business and the volume of transactions you handle. Some solutions are better suited for small to mid-sized businesses, while others are designed for larger enterprises.
- Features: Evaluate the features offered by each software and determine which ones align with your AR management goals. Look for features like automated reminders, analytics, and integration options.
- Integration: Ensure that the AR software you choose can seamlessly integrate with your existing accounting, CRM, and ERP systems to avoid data silos and streamline operations.
- Pricing: While custom quotes are common in the AR software market, it's essential to get a clear understanding of pricing and additional costs.
- Support and Training: Evaluate what kind of customer support and training you’ll get from the vendor to ensure a smooth implementation process.
Navigating the AR automation landscape can be challenging, but with the right information and careful consideration of your business needs, you can choose the best AR automation software to streamline your financial operations and improve cash flow management.
Growfin AI, with its advanced AI capabilities and comprehensive feature set, is a standout choice among the top AR software solutions available today.