11 Best Accounts Receivable Software for Businesses

Here is everything to know about the top accounts receivable automation solutions for 2024, including the pros and cons for each platform. Accounts Payable (AP or A/R), sometimes called “payables,” is the amount of money a business owes goods or services it receives on credit from a vendor. Accounts Payable is considered a current liability on a corporate balance sheet, whereas Accounts Receivable is a current asset. Like AP, the AR team is generally located within the Finance department.

Once the company receives and approves this order, it generates a sales order which includes details about quantity, price, payment date, and any other relevant terms of sale. If both parties approve the sales order, it becomes a binding agreement. Like Accounts Payable, Procurement and even IT, Accounts Receivable has long been considered a cost center, i.e. a central service or back office process that’s necessary but doesn’t drive revenue. In reality, AR is a tool for improving cash flow, which is critical during boom times when you need to quickly fund new opportunities or during downturns when we need to preserve cash to survive. Implementing automation software or tools allows you to automate repetitive tasks and free up valuable time to focus on more strategic activities.

Its comprehensive features are impressive, though smaller companies may not require such sophistication. BlackLine specializes in simplifying and automating the complex steps involved in closing processes. This is particularly beneficial for receivables, where accuracy and timeliness are critical.

1. But, its interface could be more intuitive, particularly for first-time users.
2. Accounting software with built-in features for accepting digital payments, like QuickBooks Online, makes it easier to manage accounts receivables.
3. Once the business assesses the customer’s credit, they have the option to approve or deny their order.
4. By assessing the creditworthiness of customers, businesses can make informed decisions about credit terms.

Explore what you can do with QuickBooks

Moreover, AI-driven dashboards provide a comprehensive view of receivables, highlighting areas needing attention. Quadient offers a compelling solution for those looking for more intelligent receivables management. However, without a solid Accounts Receivable strategy, you can find yourself facing a cash flow crisis that could cripple your operations. Sometimes, no wave accounting reviews matter how hard you try to collect money owed to you, it becomes clear the debtor is not going to pay. When this happens, you generally have the ability to write off the bad debt. If you’re having trouble getting invoices paid by your customers, you’re not alone.

QuickBooks Support

BlackLine provides real-time insights and analytics, giving businesses an up-to-the-minute grasp of their receivables. This includes the early detection of potential problems so that minor issues don’t grow into big ones later. BlackLine offers a sophisticated solution for complex Accounts Receivable operations. The freelancing platform tackles the complex tasks of managing money in larger financial environments. QuickBooks makes this process easy by calculating and tracking sales tax for you.

Pros of Invoiced

Flexibility increases the likelihood of receiving timely payments but also enhances customer satisfaction. Melio stands out for its easy way of handling payments and money owed. It’s perfect for small businesses that need an uncomplicated payment process. However, companies with more complex accounting needs might find Melio somewhat lacking. They’ll need an accounting system in addition to the features that Melio offers. A standout feature is its flexibility in accepting multiple payment types, including paper checks.

Keeping your finances on track and staying on top of your accounts receivable (AR) is important for healthy cash flow in a small business. Effective accounts receivable management involves managing and tracking outstanding customer invoices and ensuring timely payment collection. Are you tired of the complexities and challenges in managing your accounts receivable (AR) process? Are late payments, manual collections, and cash posting causing repeated headaches for your business? The following guide what does a ‘credit balance’ in accounts receivable mean explores the most common AP pain points and shares the top solutions to simplify and streamline your receivables. The software automates repetitive tasks like invoicing and payment reminders, saving valuable time.

Try these 6 tips for getting invoices paid on time, including assessing finance charges to outstanding invoices. Besides, it’s also important to assess the tool’s ability to handle increased invoice volumes/users, as your business grows. Cloud-based software often provides greater scalability than on-premise solutions. Establish clear payment terms, such as due dates, grace periods, and late fees, and clearly communicate these terms to customers. Develop a standard invoicing process with templates and numbering conventions for consistent, accurate billing.