Managing late payments and dealing with endless paperwork can feel like an ongoing battle for your business. Hay nako!
And if you’re still relying on spreadsheets to track everything, you’re not alone. Data from the Institute of Finance & Management (IOFM) show that only 5% of purchase orders match invoices accurately the first time around, often leading to high-cost errors and hours being wasted.
This is where accounts receivable automation software comes in. It’s a game changer for simplifying accounting and improving data accuracy. But with so many options available, finding the right fit for your business can be overwhelming.
While there are many options to choose from, HashMicro Accounting Software is by far the best choice for businesses looking to eliminate errors and boost efficiency. It automates invoicing and payments, so that the accounting teams can easily fill out forms and check them.
However, this article also provides 19 other AR automation software recommendations so that businesses can consider and make the right choice.
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What is Accounts Receivable Automation Software and its Benefits?
Accounts receivable automation software is designed to streamline the payment collection process from customers. This tool automates the creation of invoices, monitors due payments, manages collections, and records received payments.
Using accounts receivable automation software offers several benefits for businesses, including:
- Reducing human errors in invoicing and data entry through automation.
- Freeing up valuable time for finance teams to focus on strategic tasks instead of routine data entry.
- Lowering operational costs related to accounts receivable management by minimizing manual work.
- Accelerating invoice processing, which leads to quicker payments and improved cash flow.
- Providing detailed insights and analytics to help businesses make more informed decisions.
- Enhancing the customer experience with faster processing and consistent communication.
20 Best Accounts Receivable Automation Software
Picking the right accounts receivable automation software is vital to enhance the efficiency and precision of your financial operations. Listed below are the 20 accounting software recommendation for businesses, with a comparison of their features, functionalities, and benefits.
1. HashMicro accounts receivable automation software
HashMicro’s accounting system is a comprehensive tool that automates the receivables management process. It streamlines invoice handling, payment tracking, and customer communications through advanced automation.
HashMicro also provides a free product tour and consultation with its expert team, offering potential users an in-depth look at how the software functions and how it can be customized to meet specific business requirements.
Prominent clients like the Bank of China, Forbes, and Hino demonstrate HashMicro’s reliability across various industries, showcasing its ability to manage complex financial tasks. This makes it an ideal option for businesses aiming to improve their accounts receivable processes.
HashMicro’s Accounts Receivable Automation Software is packed with features designed to optimize and simplify financial workflows. Here’s an overview of its key functionalities:
- Bank Integrations & Auto Reconciliation: The software connects with bank accounts to automatically match incoming payments to outstanding invoices, ensuring accurate application to the correct accounts receivable entries.
- Forecast Budget: Utilizing historical receivables data, this tool forecasts future cash inflows, giving businesses a clearer picture of expected payments and aiding in planning for future expenses and investments.
- Financial Ratio Analysis: Automatically calculates key ratios like the accounts receivable turnover ratio, helping identify customer payment trends and highlighting areas that may need improved collection efforts.
- Custom Invoice Printouts: Allows for tailored invoice designs that meet specific branding or regulatory standards, enhancing invoice clarity and professionalism, which may encourage quicker customer payments.
- 3-Way Matching: Confirms that invoices, received goods, and purchase orders match before releasing payments, preventing overpayments or payments for undelivered goods, and safeguarding against fraud and discrepancies.
- Cash Flow Reports: Monitors cash generated from receivables, aiding in managing the timing of incoming cash and adjusting credit policies or collection practices as needed.
| Pros | Cons |
| User-friendly interface | The implementation process can be lengthy for businesses with complex needs |
| Highly customizable to fit business needs | |
| Strong integration with other systems | |
| Unlimited users without additional user fee | |
| Lifetime after-sales service and maintenance |
2. NetSuite accounting system
NetSuite provides accounts receivable automation software designed to simplify the AR process for businesses. The accounts receivable management software automates key tasks, including invoice creation, payment tracking, and account reconciliation.
NetSuite’s features include an automated billing system for generating and delivering invoices, in-depth financial analytics for valuable insights, and credit management tools to set and monitor credit limits while assessing customer creditworthiness.
| Pros | Cons |
| Extensive customization options | It is one of the pricier options available. |
| Cloud-based accessibility | The platform can be complicated and may have a steep learning curve to fully utilize its features. |
| Integrates well with other tools and platforms | Lacks built-in payroll functionality. |
3. Sage Intacct
Sage Intacct offers a complete solution aimed at improving the efficiency and accuracy of the accounts receivable process. With features that address past-due scenarios, Sage Intacct keeps all financial data synchronized and current.
The software supports diverse billing scenarios, such as time-based and project-based billing. It also delivers real-time insights into payment statuses and customer account activity, along with an automated dunning system to facilitate timely collections.
| Pros | Cons |
| Features an easy-to-use, intuitive interface. | Does not include built-in time-tracking, which could be a disadvantage for some businesses. |
| The system’s complexity may present a learning curve. | Provides robust automation capabilities for financial processes. |
| Easily integrates with numerous third-party applications. | Report customization options are more limited compared to other software |
4. SAP S/4HANA accounting software
SAP S/4HANA provides accounts receivable automation software that streamlines financial tasks such as credit management, invoice creation, and payment matching, which often demand significant manual effort.
Its key features include sophisticated credit management tools that assess customer credit risk in real-time and adjust credit limits based on past data and payment patterns. Additionally, its analytics features offer comprehensive insights into accounts receivable activities.
| Pros | Cons |
| Provides a modern and user-friendly interface. | High initial setup costs along with ongoing maintenance fees. |
| Easily integrates with other SAP products and third-party applications.
Utilizes in-memory computing to enable real-time data processing. |
Implementation can be complex, requiring considerable time and resources.
Customization can be challenging and may need specialized expertise. |
5. Xero accounts receivable automation software
Xero Accounts Receivable Automation Software is designed to streamline the management of invoices and incoming payments. It integrates with Xero’s accounting system, ensuring smooth data transfer between invoicing and financial reporting.
Key features include real-time tracking of invoice statuses, automated payment reminders, and support for multiple payment gateways to enable quicker and more convenient customer transactions.
| Pros | Cons |
| Offers a simple and user-friendly interface. | Some advanced features come with a learning curve. |
| Integrates well with numerous third-party applications. | The basic plan restricts the number of invoices and bills that can be processed. |
| Includes a powerful mobile app for managing finances on the move. | Lacks a direct phone line for customer support. |
6. Zoho Books accounting system
Zoho Books is a key part of Zoho’s financial suite, built to streamline and automate receivables management. This accounts receivable management software makes it easier to track invoices, process payments, and efficiently manage customer accounts. Notable features include advanced analytics that offer real-time insights into the status of accounts receivable, allowing companies to monitor aging summaries and evaluate customer payment patterns.
| Pros | Cons |
| Boasts an intuitive and easy-to-use interface. | Basic and lower-tier plans have limitations on user numbers. |
| Provides automation for various financial processes. | Advanced features are accessible only in higher-tier plans. |
| Integrates seamlessly with other Zoho products and multiple third-party applications. | Some users have noted slow response times from customer support. |
7. Square Invoices
Square Invoices provides accounts receivable automation software to streamline receivable management for businesses. Users can create, send, and manage invoices directly from their devices or via the Square app. Notable features include customizable invoices, automated payment reminders, real-time invoice tracking, mobile integration for on-the-go invoicing, secure payment processing, and detailed reporting and analytics.
| Pros | Cons |
| The platform is user-friendly. | Upgrading to Square Invoices Plus may incur additional costs for some businesses. |
| Supports multiple payment methods, including credit and debit cards. | Payment processing fees apply and can accumulate based on transaction volume. |
| Allows unlimited invoice sending, even with the basic plan. | The basic version offers limited invoice customization options. |
8. FreshBooks accounting system
FreshBooks ranks among the leading accounting software, automatically updating account balances with incoming payments to maintain accurate records and follow-ups. When comparing accounts receivable automation software, FreshBooks stands out for its efficiency and reliability.
This accounts receivable management software offers features such as automated invoicing, payment reminders, online payment integration, expense tracking, time tracking, financial reporting, multi-currency support, and client management tools, all aimed at simplifying and improving financial tasks for businesses of any size.
| Pros | Cons |
| User-friendly, even for those without an accounting background. | Offers limited options for customization. |
| Includes a mobile app for managing finances on the go. | May not be suitable for larger businesses with more complex needs. |
| Provides reliable phone support. | Adding extra team members results in additional monthly fees. |
9. Invoice2go accounts receivable automation software
Invoice2go Accounts Receivable Automation Software distinguishes itself in the realm of accounts receivable solutions by transforming how businesses handle their receivables through more efficient processes.
The software automates invoicing, monitors payments, and sends automated reminders to simplify financial operations. It also tracks payments seamlessly, automatically updating accounts receivable records to ensure accuracy and efficiency in financial management.
| Pros | Cons |
| Features a user-friendly interface. | Has limited integration options with other systems. |
| Includes built-in time tracking to directly add billable hours to invoices. | Can be expensive, especially given the limited features in its lower-tier plans. |
| Supports multiple payment methods, such as credit and debit cards. | Lacks optical character recognition (OCR) for scanning receipts. |
10. Centime Accounts Receivable Automation Software
| Pros | Cons |
| Offers a user-friendly interface. | May have a learning curve for new users. |
| Integrates effectively with banking and CRM systems. | The wide range of features may be excessive for smaller businesses. |
| Provides real-time cash flow forecasting. | Some users have reported a lack of transparency in pricing details. |
11. HighRadius
HighRadius provides AR automation software to streamline and enhance the accounts receivable process for businesses. The software focuses on reducing manual effort, minimizing errors, and boosting efficiency in managing receivables.
Key features of accounts receivable automation software include automated invoice processing, payment reconciliation, credit management, collections management, cash application, dispute management, along with reporting and analytics, all aimed at optimizing financial operations.
| Pros | Cons |
| Features an intuitive interface with customizable dashboards. | Implementation can be challenging, potentially requiring extra time and resources. |
| Easily integrates with popular ERPs. | Users have occasionally encountered system access issues or critical errors. |
| Provides robust analytics and AR intelligence insights. | Some users have noted that customer support could be improved. |
12. BlackLine accounting system
BlackLine Accounts Receivable Automation Software streamlines the accounts receivable process by integrating with existing financial systems to automate invoice processing, payment tracking, and collections management.
Its key features of accounts receivable software include automated invoice handling, real-time payment tracking, dispute management, credit risk assessment, as well as detailed reporting and analytics. Together, these tools help businesses maintain accuracy and stay up-to-date.
| Pros | Cons |
| Provides extensive features for managing financial close. | The comprehensive suite may be overwhelming for new users. |
| Highly customizable to fit complex business processes. | Some users have noted delays in system updates, which can be disruptive. |
| Supports compliance with robust controls and audit trails. | Despite its versatility, there are some customization limitations. |
13. Billtrust
Billtrust Accounts Receivable Automation Software is built to simplify the entire accounts receivable process, minimizing manual work and boosting efficiency. The accounts receivable management software automates tasks such as invoicing, payment processing, and cash application.
Key features of accounts receivable software include automated invoicing, electronic payment processing, customer portals, in-depth analytics and reporting, automated cash application, and credit management tools.
| Pros | Cons |
| Features an intuitive and easy-to-navigate platform. | The pricing structure lacks clarity, making it hard to determine the total cost of ownership. |
| Provides extensive automation capabilities. | May be too complex for smaller firms. |
| Offers robust analytics and accounts receivable intelligence insights. | Some users have noted that special projects or form changes can take longer than anticipated. |
14. BILL AP/AR accounting software
BILL AP/AR is built to simplify and streamline accounts receivable management for businesses. It generates invoices from sales data, sends them to customers, and tracks each invoice’s status until payment is received.
Key features include payment reminders, integrated payment processing, real-time tracking and reporting, and customizable invoice templates, all aimed at improving accuracy and efficiency in managing accounts receivable.
| Pros | Cons |
| The platform is user-friendly and easy to navigate. | Some users have experienced issues with customer support. |
| Provides a wide range of automation features. | Data syncing with other accounting software can pose challenges. |
| Allows for electronic payments. | Reports indicate occasional delays in payment processing. |
15. Invoiced accounts receivable automation software
Invoiced is a powerful accounts receivable system that automates essential tasks like invoice creation, payment tracking, and customer communication. The software synchronizes all data, minimizing errors and enhancing efficiency.
Key features of the Invoiced Accounts Receivable System include automated invoice generation, payment reminders, online payment processing, customer portals, as well as detailed reporting and analytics to streamline financial processes.
| Pros | Cons |
| Invoiced streamlines repetitive tasks, helping to save time and minimize manual mistakes. | It can be costly, particularly for companies with tight budgets. |
| The software delivers in-depth insights into accounts receivable (AR) performance. | Users might need time and training to fully adapt to the software. |
| It offers convenient online payment options and sends timely reminders to customers. | Integrating with existing systems can present some challenges. |
16. Versapay
Versapay Accounts Receivable Automation Software automates multiple parts of the receivables process, including invoicing, payment handling, and reconciliation. It promotes real-time collaboration, ensuring timely payments and swift resolution of disputes.
Notable features of Versapay include invoice distribution, real-time payment monitoring, an integrated customer portal, automated reconciliation, and robust analytics and reporting. These tools are designed to boost efficiency, improve cash flow, and reduce manual tasks.
| Pros | Cons |
| Easy-to-use interface. | Search performance can be slow at times, leading to delays in client support. |
| Integrates seamlessly with other ERP systems. | The reporting tools could benefit from enhancements to be more versatile and comprehensive. |
| Customer support is responsive and helpful. | Some users have encountered limitations with payment caps, which can feel restrictive. |
17. Gaviti accounting system
For businesses facing challenges with overdue accounts receivable automation, Gaviti offers a complete platform to optimize processes and enhance financial performance. It seamlessly integrates with existing ERP and accounting systems, providing real-time updates and synchronization.
Gaviti’s key features include automated invoice distribution, payment reminders, customizable dunning letters, real-time analytics, integration with leading ERP systems, and a dashboard that delivers a detailed view of receivables performance.
| Pros | Cons |
| It seamlessly integrates with multiple ERP systems. | Customization options are somewhat limited. |
| The platform provides strong data tracking and simplifies analysis. | New users might experience a learning curve. |
| Fast setup enables businesses to start using the platform with minimal interruptions. | Some users have noted that the email-sending feature could use enhancements. |
18. Tesorio
Tesorio is a top-tier accounts receivable automation software designed to streamline and optimize receivables management. It automates the tracking, collection, and reporting processes, minimizing the need for manual efforts.
Tesorio’s key features include automated invoice reminders, payment monitoring, cash flow forecasting, advanced analytics, smooth integration with current financial systems, and customizable reporting options.
| Pros | Cons |
| Intuitive and easy-to-navigate interface | Occasional downtime has been reported, which can disrupt operations |
| Extensive customization options in reporting | Some users have noted issues with email automation and functionality |
| Responsive and helpful customer support | Tesorio might lack some functionalities that users need compared to other tools |
19. Hiver
Hiver AR Automation Software is built to simplify and enhance receivables management. By connecting with your current financial systems, Hiver provides real-time data updates, reducing manual work and minimizing mistakes.
Hiver’s main features include effortless integration with financial systems, automated invoice tracking, payment reminders, real-time data synchronization, comprehensive reporting, and analytics. These tools increase efficiency in managing receivables and assist in making more informed financial decisions.
| Pros | Cons |
| Easy to set up and navigate | The subscription cost may be expensive |
| Seamlessly integrates with Google Workspace, ideal for Gmail users | Some advanced features are limited to higher pricing tiers |
| Includes automation tools and analytics | There can be a learning curve for new users |
20. BlueSnap Accounts Receivable Automation Software
BlueSnap Accounts Receivable Automation Software streamlines key tasks in the receivables process, such as invoicing, payment monitoring, and reconciliation. It ensures accurate, real-time transaction recording, minimizing errors and boosting financial efficiency.
BlueSnap’s main features include global payment processing, advanced invoicing options, real-time payment monitoring, multi-currency support, detailed reporting tools, fraud prevention, and strong security protocols.
| Pros | Cons |
| It supports multiple currencies and payment methods | Some users have experienced challenges with integration, especially with certain systems |
| BlueSnap provides PCI Level 1 security, guaranteeing secure payment processes | A few users found the platform less intuitive, particularly during the initial setup |
| Outstanding customer support | There have been reports of occasional delays in payment processing |
5 Major Pain Points in Accounts Receivable Operations
Effectively managing accounts receivable (AR) is key to ensuring steady cash flow, but several challenges can impede business operations. Here are five common pain points companies frequently encounter in AR management:
- Delayed payment cycles: Slow payments, often caused by manual invoicing processes and late customer payments, can disrupt cash flow and hinder business activities
- Payment tracking and reconciliation: Manually matching payments to invoices is labor-intensive and prone to errors, causing discrepancies and delaying collections.
- High Days Sales Outstanding (DSO): A high DSO suggests longer collection times, which can adversely affect cash flow and financial stability.
- Invoice mistakes: Errors like incorrect amounts or missing details on invoices can lead to disputes and payment delays.
- Ineffective communication: Poor communication about payment terms and due dates with customers can cause confusion and result in late payments.
Addressing these AR pain points is crucial for improving financial and operational efficiency. By recognizing and resolving these issues, businesses can enhance their accounts receivable processes.
Trends in Accounts Receivable Software and How Should Businesses Stay Prepared
As businesses evolve, staying on top of the latest trends in accounts receivable software is essential to maintaining financial efficiency and a competitive edge. Here are some of the most significant trends in AR software and how businesses can stay prepared:
1. Customer-centric payment experience
A customer-centric payment experience is becoming increasingly vital in accounts receivable software. By offering multiple payment options, including mobile and online payments, businesses can make it easier for customers to pay on time, leading to faster collections and better cash flow management.
2. Predictive analytics
Predictive analytics is revolutionizing the way businesses manage accounts receivable. With the help of AI-powered accounts receivable software, businesses can analyze historical data and predict future payment trends, helping them identify potential risks and take proactive measures.
3. Cloud-based AR solutions
Cloud-based accounts receivable solutions are becoming the standard due to their flexibility, scalability, and ease of access. These solutions allow businesses to access real-time financial data, track payment statuses, and collaborate with teams from anywhere, at any time.
4. Blockchain in receivables management
Blockchain technology is making its way into accounts receivable management, offering increased transparency, security, and efficiency in financial transactions. Blockchain-enabled AR software allows businesses to record and verify transactions without the need for intermediaries, reducing the risk of fraud and streamlining the invoicing and payment process.
By keeping these trends in mind, businesses can future-proof their accounts receivable processes and stay ahead of the competition. Implementing advanced accounts receivable software will ensure enterprises remain efficient, customer-focused, and prepared for future challenges in the financial landscape.
A Guide to Picking the Ideal Accounts Receivable Automation Tool
Choosing the right accounts receivable automation software is a crucial decision that can significantly influence your financial efficiency and overall operational success. Here are several key considerations to help ensure you make the best choice:
- Assess your business requirements: Take into account the volume of invoices, the complexity of your payment processes, and any unique needs your business has. This will guide you in identifying the must-have features for the software.
- Review key features: Look for a solution that provides a robust set of features aligned with your business needs, such as automated invoicing, payment processing, customer portals, and detailed reporting tools.
- Ease of use: The software should have an intuitive and easy-to-navigate interface. A user-friendly design minimizes the learning curve, boosts productivity, and helps your team quickly adapt to the new system.
- Customization options: Opt for software that can be customized to suit your specific workflows and processes. Flexibility in customization ensures the solution will meet your unique needs and grow with your business.
- Integration capabilities: Ensure the software integrates seamlessly with your existing ERP, CRM, and financial systems. Integration is essential for maintaining accurate data flow and ensuring real-time updates across your financial operations.
- Scalability: Factor in your business’s future growth. The software should be scalable to handle increasing transaction volumes and more complex accounts receivable tasks as your company expands.
- Security and compliance: Verify that the software complies with industry standards for data security. Strong security measures are vital to protect sensitive financial data and ensure compliance.
- Vendor support and training: Select a vendor that provides strong customer support and comprehensive training. Reliable support ensures prompt issue resolution, while thorough training helps your team fully leverage the software’s features.
By carefully considering these factors, you can choose the right accounts receivable automation software to streamline financial operations, improve accuracy, and support your business’s growth and success.
Conclusion
Choosing the right accounts receivable automation software is essential for any business. With the right solution, you can simplify your accounts receivable workflows, increase accuracy, reduce manual effort, and maintain a smooth cash flow.
HashMicro Accounting Software excels with its robust features and seamless integration capabilities. Trusted by businesses across multiple industries, HashMicro offers high-quality solutions and excellent customer support, ensuring easy management of receivables for your business.
Explore how HashMicro can optimize your accounts receivable processes and help your business achieve financial success. Sign up for a free demo today and consult with our expert team to address your business needs.
FAQ About Accounts Receivable Software
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What software is used for accounts receivable?
HashMicro’s Accounts Receivable Software is an all-in-one solution designed to streamline the process of managing incoming payments. It automates invoicing, payment tracking, and financial reporting, providing businesses with real-time insights into outstanding invoices and cash flow. The software allows companies to set up automated reminders, track overdue payments, and generate detailed reports to ensure timely collections and minimize administrative burden.
An example of an AR account in HashMicro’s system could be a customer’s open invoice, where the software tracks the amount due, payment status, and due date in one centralized dashboard. This enables businesses to efficiently monitor and manage their accounts receivable, improving cash flow management and reducing the risk of delayed payments.
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What is an example of an AR account?
An example of an AR account is “Accounts Receivable – Customer XYZ”, where payments owed by Customer XYZ are tracked. In this case, the AR account reflects the amount the customer owes for goods or services provided on credit. For example, if a company sells products to a customer on credit, the amount due from the customer is recorded under an AR account, which will be cleared once the customer makes the payment.
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What software is required for AR?
The software required for accounts receivable (AR) depends on the size and needs of the business, but generally, any accounting software with AR capabilities will suffice. Key features to look for in AR software include:
1. Invoicing and payment tracking
2. Integration with accounting systems
3. Automation for reminders and late fees
4. Reporting and analytics tools for cash flow forecasting
5. Cloud-based functionality for real-time access to data
Examples of software commonly used for AR include QuickBooks, Xero, FreshBooks, and NetSuite. These solutions allow businesses to efficiently track outstanding invoices, manage collections, and improve cash flow management.
