7 Best Accounts Receivable (A/R) Automation Software Vendors

The traditional accounts receivable process is full of manual processes that are prone to error. What’s worse, inefficiencies in these processes can lead to unpaid invoices, late payments and the inability to generate the revenue that your business rightfully earned. As a result, many businesses turn to accounts receivable automation solutions.

If you’ve decided your business is ready to move to automating its A/R, you’ll want to find the best A/R automation software, also called invoice to cash software, that suits your needs.

Benefits of Accounts Receivable Automation Software

Whether your goal is to automate the collections process with accounts receivable automation software or scale it as your company grows,you’ll want to look for a solution that offers the most benefits for your business.

These benefits include:

• Streamlining and automating the A/R process. Simplify workflows and improve A/R processes such as invoice distribution, tracking payments, credit management, bank reconciliation and dispute management.  Automating these processes eliminate manual errors that lead to delays in collections, improving overall efficiency.
• Gaining better visibility into the A/R process. By centralizing data in one place, you’ll allow for A/R and finance teams as well as marketing, sales and procurement to see metrics such as days sales outstanding (DSO), unique KPIs and customer risk assessments. This in turn fosters greater collaboration among teams and the ability to make more informed decisions.
• Having a proactive collections strategy. Most A/R collections teams are reactive, escalating collections calls after customers have unpaid or overdue invoices. By automating the dunning process, businesses can proactively remind customers about payments, sending email reminders personalized to include information related to each customer’s industry, payment due date, and potential for payment risk. A/R automation systems can also alert the relevant managers and stakeholders when a customer needs to be followed up with, rather than rely on human judgment or wait for the delinquency to be “discovered”.
• Improving customer relationships. When you clearly communicate with customers with regular email reminders, you’ll end up making the A/R collections process more efficient and reducing any inefficiencies related to collecting invoices. This will speed up the payment process and reduce the need to chase customers for payment. Customers will appreciate your smooth and organized processes.
• Tracking and monitoring A/R data. Gain insights into where your A/R process has inefficiencies and where it might be improved. Advanced A/R automation software, such as Gaviti, enables you to measure A/R team performance as well as the performance of individual team members.

Key Features of AR Automation Software

When you’re running an accounts receivables automation software comparison, you’ll want to look at the features of each to determine whether or not it can help provide you the benefits above.

These key features include:

• Automated emails. Send dunning emails to customers automatically according to their different payment timelines, segmenting and customizing them according to different industry, size, location and payment history. This proactive approach also includes automated escalations.
• Cash application. Automate the matching of invoices to payments, eliminating human error involved with manual matching and accelerating the bank reconciliation process. When customers make payments using an automated A/R solutions customer payment portal, it also matches customer payment with the corresponding invoice with increased accuracy.
• Credit monitoring and management. Automate the credit application process by allowing credit application submissions online to both existing and potential customers. Define and monitor credit limits according to comprehensive risk assessments that can be customized according to specific risk criteria beforehand such as payment behavior thresholds and credit score ranges and ensure that it is targeted towards the specific credit management strategy for each customer.

• Self service payer portal. Simplify customer payment by offering multiple types of payment, including credit cards, debit cards, ACH transfers, electronic wallets, and more. Allow customers to view past invoices and payment history and make credit requests.
• Disputes and deductions. Track, code, route and resolve customer disputes and deductions quickly by identifying recurrent issues and taking a proactive approach to future issues.
• Reports and analytics. Get a comprehensive view of A/R and data so that you can make data-driven decisions across every department. Analyze A/R performance over time and identify bottlenecks and determine methods for improvement. Integrated invoice-to-cash A/R management platforms also use data from one component of the A/R process for better insights and data in others. For example, data from your cash application component can be used for more accurate credit management.

The 7 Best Accounts Receivable (AR) Automation Software

Different accounts receivable automation solutions offer different benefits. For example, the best A/R automation solution for an enterprise with complex needs might be different from one for an SMB that needs an all-in-one accounting solution.

Here is a comprehensive list of different solutions:

1. Gaviti

   Gaviti’s automated A/R management platform allows you to customize workflows, email templates, dashboards and reports and user roles and permissions to make the entire A/R process operate and integrate together more smoothly. This customization enables businesses to ensure greater consistency in communication with customers, automate payment reminders based on specific rules, increase user engagement by allowing users the right access to A/R tools, and focus on the metrics that matter most to them.

2. HighRadius

   For enterprises with complex needs, HighRadius is a leader in autonomous finance solutions. It focuses on tangible business outcomes, such as reducing bad debt and improving DSO with a single platform for all of your financial needs, including order-to-cash, treasury, payments and accounting. It also leverages AI to help manage data, craft email responses according to proper context and generate reports.

3. Invoiced

   Invoiced automates A/P and A/R workflows in one platform.  Tailored for smaller companies, it integrates with accounting systems and allows you to invoice and make payments on a platform that is secure against invoice fraud and impersonation.

4. Zoho Books

   An automated accounting solution for small businesses, Zoho Books offers invoicing, online customer payment and automated payment reminders, inventory management, expenses tracking and financial reporting and can be used as an ERP and CRM for businesses.

5. Bill.com

   With automated financial operations, including both A/P and A/R , spend and expense management, Bill.com is the closest to an all-in-one accounting software you can get for SMBs, helping to simplify complex accounting processes.

6. Tesorio

   A Netsuite preferred partner, Tesorio solves the cash flow disconnect by integrating every aspect of your business that impacts cash flow: cash flow management, A/R automation, a payment portal, cash application and integration with ERP, CRM and payment processing data.

7. Sage50 Cloud

   Sage50 Cloud is an accounting solution with full accounts payable and receivables functions for smaller businesses and operations that includes invoicing, inventory management and payroll functions. It is meant for smaller businesses that want everything under one roof. With recent acquisitions such as Corecon, a cloud-based construction management software, and BrightPearl, a retail operating system (ROS) for retailers and wholesalers, it is also able to deliver tailored financial solutions for different sectors.

How Gaviti Delivers Automated A/R Management

Gaviti’s invoice-to-cash automated A/R management solution has proven experience in increasing cash flow up to 50% and reducing DSO by 30%. It streamlines the entire A/R process, from invoice distribution to cash application and credit management and monitoring.

Its A/R management component delivers businesses:

• Streamlined customer interactions. Capture and record customer interactions, including calls, emails and notes. Have the information readily available so that your collections teams can have meaningful interactions with customers, resolve disputes and build stronger customer relationships.

• Intelligent prioritization. Prioritize collections according to customers that pose the highest risk and value so that you can optimize collections and quickly see the effect on your cash flow. This can be especially helpful in maximizing cash inflows and minimizing bad debt.
• Customized collections strategies. Customize collections strategies to align with your business needs. For example, you can activate more proactive strategies with higher-risk customers by regularly monitoring payment behavior, escalating dunning emails, and activating real-time credit alerts for when a customer exceeds their credit limits.
• Automate collections actions. Streamline and increase efficiency in the A/R process by automating invoice reminders, tasks, internal and external escalation for overdue invoices and other collections actions.
• Real-time reporting. Track key metrics such as DSO, collections efficiency and aging analysis continuously to identify customer trends, maximize current successful A/R strategies and pinpoint areas for improvement.

Want to know more about how Gaviti can streamline and automate your A/R process? Speak to a specialist today! 

See why Gaviti is ranked as the #1 Credit & Collections Software on G2: