18 Best Accounts Receivable Automation Software Reviewed For 2024

Most accounting software solutions offer basic accounts receivable functionality, and in-house accounting teams can handle AR tasks internally. However, AR automation software can help teams save time and can potentially improve AR efficiency. For large firms and any company with high transaction volume, software with accounts receivable automation functionality is recommended. SoftLedger is a comprehensive cloud accounting platform that has custom solutions for a wide variety of business shareholder vs stakeholder sizes. It offers integrated bank and credit card feeds, automated invoicing, and custom invoice formatting.

Example of AR automation in action:

And, assuming you intend to grow and evolve your business, it’s vital you partner with an AR automation vendor that’s capable of growing with you, too. The last thing you want is to have to compromise on your digitization goals because the solution you ultimately select is incapable of supporting them. The ugly truth is money and expansion are not forever (only diamonds are), and not having positive cash flows means not having enough cash on hand to capitalize on lucrative opportunities when they arise. And since AR digitization is still fairly new, most businesses looking to automate accounts receivable understandably have many questions that need answering.

Standout features include all-in-one functionality for invoicing and basic accounting, as well as built-in time tracking, professional invoicing, and integrated payments. 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. Although large corporations may hire an accounts receivable specialist, smaller businesses may not be able to justify the investment. Instead, they look to software to handle accounts receivable processes for a fraction of the cost. Accounts receivable automation brings accuracy, efficiency, and key advantages to businesses across sectors.

A Guide to Choosing the Best Accounts Receivable Software

1. Support the Office of the CFO with automation and AI assistance designed to lower DSO, enhance cash forecasting and improve working capital.
2. Reduce Days Sales Outstanding (DSO) and improve your working capital with Centime’s automated AR software.
3. Fundbox leverages machine learning to automate the approval and lending process, so once you connect your accounting software or bank account, you can get a credit decision and funding within one business day.
4. Stripe Revenue Recognition streamlines accrual accounting so you can close your books quickly and accurately.
5. These are all standard practices and requirements, and modern technology doesn’t change the actual necessities of the process.

Utilize AI capabilities, such as payment date prediction and dynamic customer segmentation, to proactively identify critical customers and recommend appropriate collection strategies. These insights empower your credit teams to control and improve bad debt by proactively managing upcoming orders. Manual invoice processing can be labor-intensive, often requiring significant data entry. Monitor payment patterns by customers to ensure critical customers are paying on time.

Also, be sure to consider any customizations you may need, and factor in any additional costs that may come with them. Not all the information you need will be publicly available—I.e., on the vendor’s website—so, you might need to get crafty. A principal factor in determining which AR automation tool you ultimately choose should be how well it addresses your unique challenges and future goals. After all, it does you no good if your specific objectives cannot be achieved during your digital transformation journey.

Managed AR

Learn how we stay transparent, read our review methodology, and tell us about any tools we missed. Simon Litt is the editor of The CFO Club, specializing in covering a range of financial topics. His career has seen him focus on both personal and corporate finance for digital publications, public companies, and digital media brands across the globe. It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, MS Dynamics, and scales to meet the needs of your order-to-cash process. These are all standard practices and requirements, and modern technology doesn’t change the actual necessities of the process.

If you’re evaluating AR automation solutions, be sure to  consider your unique pain points before finalizing your decision. By implementing AR automation tools, teams can significantly improve their workflow, ensuring faster and more reliable management of receivables. It supports various functions such as creating and distributing invoices, processing payments, sending payment reminders, reconciling accounts, and analyzing AR data.

HighRadius is revolutionizing accounts receivable management by automating critical processes such as credit management, electronic invoicing, payment processing, cash applications, deductions, and collections. Its AI-powered solutions improve cost savings, reduce DSO (Days Sales Outstanding) by 20%, and boost productivity by 30%, enhancing overall efficiency. By automating accounts receivable processes, you reduce the time it takes for invoices to reach customers – enabling faster customer payments.