Accounts Receivable (AR) software enables companies to optimize and improve their client invoicing and payments procedures. Its aim is to make sure that clients make timely payments for the services or goods they get.
What to Look For In Accounts Receivable SoftwareAccounts Receivable (AR) software enables companies to optimize and improve their client invoicing and payments procedures. Its aim is to make sure that clients make timely payments for the services or goods they get. The platform streamlines the financial dealings between a firm and its clients. It can be utilized by accountants, AR specialists, executives and managers to monitor the effectiveness of the AR department or team.
AR automation helps to simplify the processing of big volumes of client invoices. This can considerably decrease the time needed by accountants to collect payments from clients. It can also improve the accuracy of payments and invoicing procedures, which can positively impact a firm’s cash flow and profitability. In addition, AR software ensures compliance by offering valuable data that can be used to prepare regulatory financial reports.
All accounting applications include AR management features, but specialist AR automation is typically provided as a separate system offering advanced capabilities. Therefore, it is essential to integrate AR software with ERP solutions’ accounting modules as well as with accounting programs. Medium and large enterprises can also integrate it with CPM (corporate performance management) software.
AR automation solutions offer the following functions:
Manage various kinds of client transactions including payments, credits and invoices
Collect and process large numbers of transactions efficiently with minimum human assistance
Match payments, credits and invoices with sales and quotes orders to ensure processing of correct amounts
Offer workflows that can be utilized to determine exceptions and rules for AR processing
Deliver analytics and reports on the status of payments, invoices, transaction history and customer credit
Incorporate customizable approval procedures for all kinds of AR transactions
Accept various modes of payment including credit cards, electronic funds transfers, check and cash. Some tools offer integration with leading payment or merchant services like PayPal.
Produce and deliver invoices for services and goods offered. Some applications permit you to create recurring invoices that are automatically delivered as per a specified schedule.
Track outstanding balances vs paid. Leading programs allow you to view when clients see an invoice and send them reminders about overdue or late invoices.
You can create custom invoice templates to produce professional-looking invoices by including company logo, customer information, and payment terms like Net 15 and Net 30. Many platforms provide features for multi-currency invoicing.
Top tools enable you to access AR information via mobile apps for Windows phones, Android and iOS. You can send payment reminders, invoices and more from your mobile device.
Assess AR info via reports, configurable dashboards and data visualization features like graphs and charts. Get insights into recurring invoices, deferred revenue, customer aging and more.
Sales cycles typically need plenty of expenses and time for closure. An AR system can help to speed up the process in an economical and appropriate way. Projects can be approved faster which will facilitate quicker payments. The software will automatically send invoices to customers and provide them a portal with options for off-the-shelf or accelerated payment.
You can handle invoices digitally and automate administrative processes to improve your billing workflows. Your partners and employees can benefit from the automated processes as they don’t have to manually print, stamp, and send documents.
AR solutions offer communication features such as logged phone calls, merged documents, customized email messages with attached invoices, and instant access to data. You can store all information and utilize it to prepare reports. Further, you can improve your client communications and boost your professionalism and credibility.
Advanced AR applications enable you to better comprehend your cash position so you can allocate capital for important decisions such as investments in business growth, enhanced invoice collection, quality hiring, prompt purchases and more.
AR software helps you to focus your efforts on developing better accounts receivable prioritization practices to pinpoint and close invoices more quickly. This will give you more disposable funds or if not, at least an accurate picture of your cash position. This is essential for every firm as it will assist them to cover their financial obligations.