But for smaller firms or companies with fewer receivables, it’s important to consider how much these tools could potentially improve AR workflows normal profit definition compared to the cost of the software. AR automation software should also enable these processes with minimal input required from accounting and finance teams. As the name suggests, AR automation software is specifically designed to improve efficiency by increasing the percentage of AR workflow that can be automated.

Our company is global — can an AR solution handle that?

1. Manually managing accounts receivable involves time-consuming steps like creating invoices, tracking payments, and calling customers to remind them of overdue bills.
2. It can help manage late payments and also accept credit card payments.
3. The first thing you’ll want to do is pick the A/R automation tool that you’ll be using.
4. Reduce Days Sales Outstanding (DSO) and improve your working capital with Centime’s automated AR software.

Bill (formerly branded as Bill.com) is an accounts payable and accounts receivable platform that’s fully web-based. It’s most popular as an AP tool, but it has expanded to cover AR as well—and offers ample automation features in both categories. It integrates with most financial and business software and offers bi-directional syncing with most major accounting platforms. BlackLine is a unified cloud accounting platform for mid-sized to large firms.

It’s a tool offering automated accounts payable (in addition to accounts receivable), they serve a ton of clients and have a lot of resources for accounting firms who want to offer payable/receivable services. A solution won’t actually save your team time if they can’t figure out how to use it effectively. Some legacy AR systems are notoriously difficult to use for new users, so I focused on tools with intuitive UIs and good ratings for usability. Fortunately, AR automation tools generally require less ongoing maintenance once workflows have been established and the solution is fully integrated and deployed with existing systems. BlackLine automates many key components of the AR process, from invoicing and payment matching to past-due collections and dispute management. Accounts receivable automation brings accuracy, efficiency, and key advantages to businesses across sectors.

Zoho Books is a cloud-based accounting platform that handles invoicing, AP, bookkeeping, inventory management, and more. It’s designed to be an all-in-one platform and competes with the likes of QuickBooks and Sage Intacct. With that said, its jack-of-all-trades approach means that it lacks some of the advanced AR automation features offered by some of the other tools on this list. Centime works exclusively with NetSuite, Sage Intacct, and QuickBooks Online.

Xero is a cloud-based accounting platform that combines AR, AP, bookkeeping, and more. It targets the small business and contractor crowd, offering a relatively simple solution to meet the needs of smaller businesses. Reduce or eliminate manual tasks, allowing AR teams to focus on actions that drive results, and strengthen decision intelligence to deliver significant value to the organization.

It also offers closing entries: step by step guide the option to send paper invoices via mail directly from the Bill platform. Standout features include customizable reminders and customer communications, inventory management tools, simplified vendor and customer portals, and more. Melio is a payment platform designed to simplify the process of paying and getting paid for businesses. It allows users to pay vendors, suppliers, and any business bills, as well as send invoices and receive payments online.

Best Accounts Receivable Automation Software Reviewed For 2024

Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. Centime’s streamlined AR software enables businesses to easily track KPIs like Days Sales Outstanding (DSO), Collections Effectiveness Index (CEI), and more. Easily view performance by period and monitor payment patterns by customer. Set your payment preferences, gain a comprehensive end-to-end audit trail, and apply cash automatically to your General Ledger for seamless financial management.

Schedule automated, individualized payment reminders, and automate late payment dunning notices. With Centime’s AI-powered AR automation solution, you can automatically forecast and predict delays, and instantly view the impact of those delays on future cash flows. Automated Accounts Receivable software is designed for global organizations thanks to support of multi-languages, multi-sites, multi-currencies, worldwide payment coverage and global compliance. What’s more, the cloud-based nature of the solution enables different teams to collaborate more effectively while giving executives the visibility they need at every level of the organization. Keep in mind that accounts receivable financing isn’t the same as factoring, so Fundbox does not take over the collections process, which means you still get to receive 100% of the value of the invoices you collect.

How accounts receivable automation helps businesses

SoftLedger also supports crypto accounting (and crypto payments) in the AR process. Standout features include all-in-one functionality for invoicing and basic accounting, as well as built-in time tracking, professional invoicing, and integrated payments. Standout features of Xero include simple integration with payment processors, automated invoicing, and basic accounting functionality. The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accurateness, completeness, adequacy, or currency of the information best accounting software and invoice generators of 2021 in the article.

The Case for Accounts Receivable Automation: 3 reasons to transition to a digital future

The result is not only reduced DSO, but an enhanced experience for every user. Customization is a key feature of many AR automation solutions, allowing businesses to tailor the software to their unique processes and industry requirements. They power their smart workflow tools and collections forecasting with machine learning to get accurate, easy data for clients.