Accounts receivable (AR) software is your cash flow champion. It tackles the struggle of collecting money owed by customers. Imagine chasing late payments, sending endless invoices, and facing manual errors. AR software automates these tasks, tracks outstanding invoices, and sends automated reminders. This translates to getting paid faster (fewer late fees!), improved cash flow predictability, and happier customers (clear communication about outstanding balances). Key functionalities include online invoice generation, automated payment reminders, and customer payment portals. Emerging features like credit risk assessments and data-driven collection strategies are making AR software even more powerful. Any business that sells on credit benefits, but B2B companies with complex invoicing needs see the most advantage. While it can't replace human effort in complex collections cases, AR software keeps the cash flowing smoothly and frees up staff for other tasks. In short, AR software is a collection toolbox that streamlines the process and keeps your business financially healthy.
What Are The Key Benefits of Accounts Receivable Software?
- Faster Payments & Cash Flow
- Reduced Manual Errors
- Improved Invoice Management
- Automated Payment Reminders
- Enhanced Customer Communication
- Simplified Collections Process
- Streamlined Accounts Receivable Workflows
Based on the latest available data collected by SelectHub for 136 solutions,we determined the following solutions are the best Accounts Receivable Software overall:
QuickBooks Online remains a popular choice for many users, praised for its user-friendly interface and automated features. "It feels like Intuit took the complexity out of accounting and made it accessible even for someone like me with limited accounting experience," shared a small business owner.However, user reviews also highlight limitations, particularly around customization and cost. "I love the ease of use," stated a freelancer, "but the reporting options feel restrictive. I often have to export data and work with it in Excel to get the insights I need." This sentiment, coupled with complaints about the cost of add-ons like payroll, leads some users to compare QuickBooks Online to competitors. "Xero seems to offer more flexibility and advanced features," mentioned an accountant, "but the learning curve is steeper, and the monthly subscription is higher." Ultimately, the decision comes down to individual needs and priorities.For those seeking a balance of ease of use, automation, and affordability, QuickBooks Online continues to be a strong contender. However, users with more complex accounting needs or a desire for greater customization might find themselves looking towards competitors offering more robust features, even if it comes at a higher cost or with a steeper learning curve.
Freshbooks emerges from user reviews as a reliable and user-friendly accounting solution for solopreneurs and small businesses. Its intuitive interface, mobile app access, and automated features like invoicing and online payments are consistently praised for saving time and streamlining workflows. Compared to competitors like QuickBooks, users appreciate Freshbooks' ease of use for non-accountants, while acknowledging its limitations in advanced functionalities like double-entry bookkeeping or inventory management. This makes it ideal for those starting out or needing a lightweight accounting solution, but potentially less suitable for complex financial needs as businesses grow.Another key differentiator for Freshbooks is its affordability, with tiered plans starting at an attractive price point. However, user reviews also highlight a potential drawback: as client bases expand, so does the cost, which can become a concern for some users. Additionally, while basic reporting and analytics are included, users seeking in-depth data analysis may find Freshbooks' capabilities limited compared to more robust competitors.Overall, user reviews paint a picture of Freshbooks as a user-friendly and affordable accounting solution for solopreneurs and small businesses seeking to simplify their financial management. Its strengths lie in ease of use, automation, and mobile access, while its limitations emerge in advanced features and scalability for larger businesses. Ultimately, the decision to choose Freshbooks hinges on individual needs and priorities, with users emphasizing the importance of weighing its strengths against its limitations to ensure a perfect fit.
Xero’s users say it’s easy to use and has good accounting and bookkeeping capabilities. Most found the price to be acceptable, with some complaints about issues they ran into while trying to switch to a lower pricing tier. More than 70% loved the customer service and felt their representatives were extremely helpful. It has a range of features including band feeds, invoice creation, integrations and reconciliation processes. The reconciliation was particularly popular with over 80% of reviewers who mentioned it describing positive experiences.
Xero’s users say it’s easy to use and has good accounting and bookkeeping capabilities. Most found the price to be acceptable, with some complaints about issues they ran into while trying to switch to a lower pricing tier. More than 70% loved the customer service and felt their representatives were extremely helpful. It has a range of features including band feeds, invoice creation, integrations and reconciliation processes. The reconciliation was particularly popular with over 80% of reviewers who mentioned it describing positive experiences. One issue with the system came in making updates to invoices after they’d been saved. Some users said they were sent prematurely to clients or claimed to have difficulties changing the data at a later date. Many also felt that the implementation process for the new platform was difficult, but that once they learned where things were they felt comfortable. This may be a good choice for small and medium businesses. Larger companies should consider a system that’s able to handle a higher volume.
Wave Accounting users appreciate its simplicity and affordability, making it a popular choice for freelancers and solopreneurs. The free plan covers essential features like invoicing, expense tracking, and basic reporting, catering to those with straightforward accounting needs. Users praise its intuitive interface and mobile app for on-the-go tracking, highlighting its convenience compared to clunky desktop software.However, Wave's limitations become apparent as businesses grow. Users cite frustrating reconciliation issues, limited reporting options, and the lack of advanced features like inventory management or payroll integrations. Compared to competitors like Quickbooks or Xero, Wave feels less capable of handling complex accounting workflows. While its automatic bank imports save time, the absence of phone support can be a dealbreaker for some users who need immediate help troubleshooting issues.Ultimately, Wave shines for its ease of use and zero-cost entry point, but its lack of scalability and robust features might necessitate switching to more powerful alternatives as businesses evolve. Choosing Wave comes down to prioritizing convenience and affordability over comprehensive functionality and expert support.
Netsuite Accounting is a thorough accounting ERP that superintends all bookkeeping tasks. Users are most fond of its performance with automatic updates, potent workflows and precise data collection as well as its string of features-including, tax management, general ledger, accounts payable and receivable, CRM, multicurrency and more-to boost productivity. It's also adjustable, so users may tailor it to meet their company needs. Although some users were disappointed with the system's sluggishness, occasional crashes and lack of budget estimating, fixed assets and support for .xlsx and .xls files, the majority find it an adequate bookkeeping software.
How much mulla can Mint really help you hold onto? User reviews from the past year paint a picture of a once-lauded budgeting app facing its final curtain call. Mint, known for its comprehensive financial tools, allowed users to aggregate their financial accounts, track budgets, receive bill reminders, and monitor credit scores, all for free. Users consistently praised Mint's user-friendly interface and lauded its ability to provide a holistic view of their finances, making it a breeze to track spending and identify areas for improvement, like curbing those impulse Amazon purchases. However, the app's once-sparkling reputation has been tarnished by an uptick in negative reviews, with users reporting frequent syncing issues and an onslaught of intrusive ads.While Mint's strengths, like its intuitive design and robust feature set, initially positioned it as a frontrunner in the budgeting app arena, these advantages are increasingly overshadowed by its shortcomings. The frequent syncing issues, in particular, are a major pain point for users, as they hinder the app's ability to provide accurate and up-to-date financial information. Imagine diligently tracking your spending, only to be thrown off by inaccurate account balances due to syncing errors - not exactly a recipe for financial peace of mind! Moreover, the influx of ads, while understandable for a free app, has reached a point where many users find them disruptive and excessive.Ultimately, while Mint might still hold some appeal for casual budgeters, its waning reliability and aggressive advertising strategy make it difficult to recommend wholeheartedly. The announcement of its shutdown in March 2024 further solidifies this stance. For those seeking a reliable and feature-rich budgeting companion, alternatives like YNAB (You Need A Budget) or Personal Budget might be a better fit. These apps, while not without their quirks, offer a more polished and reliable experience, ensuring your budgeting journey is smooth sailing rather than a bumpy ride.
Zoho Books lands a punch with its user-friendly interface and automation superpowers, even for accounting newbies. Invoicing, bank reconciliation, and reports become automatic allies, saving users precious time. Integration with the Zoho ecosystem and other popular tools keeps workflows in harmony. Plus, the mobile app lets you manage finances on the go, a big win for busy entrepreneurs.However, Zoho Books stumbles with transaction limits, potentially tripping up high-volume businesses. Inventory management feels like a lightweight sidekick compared to some competitors, lacking the muscle for complex needs. Unlocking automation's full potential requires coding know-how, leaving some users stranded. And while reports are generally reliable, occasional glitches necessitate a closer look. Managing multiple businesses under separate subscriptions can also add up cost-wise.So, how does Zoho Books stack up? Users often compare it to Quickbooks Online. Zoho shines with its intuitive interface and affordability, especially for solopreneurs and small teams. But Quickbooks packs a heavier punch in its inventory management and advanced reporting features, catering to larger businesses with complex needs. Zoho's seamless integrations and user-friendliness win hearts, while Quickbooks offers a more robust toolset for seasoned accountants.Ultimately, Zoho Books is a capable accounting sidekick for businesses starting their financial journey. Its ease of use, automation muscle, and affordable price tag make it a tempting choice. But for high-volume businesses or those with intricate inventory needs, other contenders might offer a more powerful punch.
Deltek Vision provides a robust suite of enterprise planning tools that most users find intuitive and accessible. Its features support critical management tasks like timesheets and reporting that help users create reports and streamline their processes. It can be customized easily to suit business needs. However, support falls short of expectations as turnaround time is high, and support isn’t included as a part of the package.
Sage Intacct user reviews paint a picture of a powerful, customizable accounting software ideal for mid-sized, growing businesses. Users praise its real-time reporting, cloud-based accessibility, and ability to handle complex financial structures. Compared to competitors, Intacct shines in scalability and customization, effortlessly adapting to multi-entity operations and unique accounting needs. This agility is crucial for dynamic businesses operating in diverse markets.However, its strengths come with caveats. Intacct's feature-rich nature can be daunting for beginners, requiring dedicated training and technical know-how. Additionally, its subscription-based pricing can be prohibitive for smaller companies or those with simpler accounting requirements. The limited mobile functionality and lack of built-in payroll are also shortcomings some users find frustrating.Overall, Sage Intacct earns its positive reviews by empowering businesses with robust functionalities and seamless scalability. However, its complexity and premium cost may leave smaller players or those needing basic accounting solutions searching for a more accessible, budget-friendly alternative.
User reviews of SAP S/4 HANA Finance paint a contrasting picture, highlighting both its game-changing potential and the challenges companies face during implementation. On the one hand, users rave about its real-time data access, enabling instant financial insights and faster, data-driven decisions. Imagine analyzing cash flow trends within seconds instead of waiting hours for reports to process. Automation features like auto-generated journal entries and invoice approvals liberate accountants from tedious tasks, freeing them for strategic analysis and collaboration.However, the transition to S/4 HANA can be a bumpy ride. The initial investment, encompassing licensing, consulting, and infrastructure upgrades, can be daunting, especially for smaller businesses. Additionally, the new interface and functionalities require user training and adaptation, potentially disrupting workflows during implementation. Unlike some competitors offering highly customizable solutions, S/4 HANA's pre-configured modules may not perfectly suit every specific accounting need, necessitating workarounds or third-party add-ons, further inflating costs.Integration challenges add to the complexity. Connecting S/4 HANA with legacy systems or specialized applications can be a technical hurdle, requiring expertise and potentially delaying implementation. Data migration can be another headache, as moving large datasets to the new system can be time-consuming and error-prone, demanding careful planning and data validation.So, how does S/4 HANA stack up against the competition? While solutions like Oracle NetSuite or Microsoft Dynamics 365 may be more affordable and customizable for smaller businesses, they lack the real-time data capabilities and industry-specific depth of S/4 HANA. For larger enterprises with complex financial needs and a long-term vision, S/4 HANA's advanced functionalities, scalability, and potential for long-term ROI outweigh the initial challenges. Ultimately, the decision boils down to a company's specific needs, budget, and risk tolerance.
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Accounts Receivable Software Is All About Gaining Control of Your Finances
By Peter Lalush, Content Writer at SelectHub
Accounts receivable, along with accounts payable, is what makes up the backbone of any business’s accounting needs. Tracking what you’re owed by customers, vendors and other business partners is extremely important, but it can be challenging, especially if you have a high volume of transactions.
Accounts receivable software is built to make this faster, easier and more accurate. With automation and data visualization tools, this software can save you valuable time and money dealing with typographical errors, tedious data entry and other issues that can come up when you’re manually balancing your books.
In this article, we’ll go over what accounts receivable software is, how it can help your business and how to find the right product for you.
Executive Summary
- Accounts receivable software helps process incoming payments and maintain a consistent database of customer transactions.
- Key features include automated data entry, visualization, payment processing, report generation and formatting, and invoicing.
- Be sure to ask potential vendors any questions you may have about their software before committing to a purchase.
What This Guide Covers:- What Is Accounts Receivable Software?
- Primary Benefits
- Key Features & Functionality
- Software Comparison Strategy
- Cost & Pricing Considerations
- The Most Popular Accounts Receivable Software
- Questions To Ask
- In Conclusion
- Product Comparisons
- Additional Resources
Accounts receivable software is an accounting module that helps businesses automatically track what other businesses and clients owe to them on a short-term basis. It works in tandem with other accounting modules to paint the most complete picture of your business operations, and helps make financial decisions and reporting much easier.
Accounts receivable software works hand in hand with other accounting software to give a complete picture of your business’s financial operations. It can generate reports and visualize transaction data in easy-to-read formats, allowing any user with access to understand how your organization is performing from an accounting standpoint.
Streamlined Processing
By utilizing automated data entry, accounts receivable software instantly inputs transaction and invoicing information into your business’s database.
A recent study by American Express found that accounts receivable automation can process payments up to 87% faster than manual processing , saving hours of time that you and your staff can put to better use on more complex tasks.
Reduced Errors
Leaving data entry to accounts receivable software allows for consistency across all of your accounting databases, meaning typographical errors and mistyped numerical data are no longer issues. You won’t have to worry about going back and fixing any mistakes, saving even more time.
Key Features & Functionality
Automatic Data Entry
Accounts receivable software forms a link between your general ledger database and your incoming transactions, adding purchase details as they occur. This reduces purchase and order processing time and eliminates the potential for human error.
Plot financial data on any number of graphs, allowing you to track trends over time and make business decisions based on all available information.
Payment Processing
When a customer or client makes a purchase from your business, accounts receivable software makes the process of tracking and collecting the short-term debt as simple as possible by utilizing digital payment processing services.
Report Generation and Formatting
Translate your data into reports for whatever purpose your business may need, whether it’s maintaining compliance with federal organizations or sharing results with company stakeholders.
Invoicing
Create, format, polish and send invoices to start the process of asking for and collecting payment.
Software Comparison Strategy
With so many software options available, deciding on the best accounts receivable software for your business can be an overwhelming process.
To make things easier, start by making a list of the features your business absolutely needs. Where does your current accounting process fall short? What do you hope the software will help you achieve?
From there, select three to five software options that meet your requirements before reaching out to vendors and starting conversations.
If you need more help with this process, try our requirements template to really narrow down what your business needs.
Cost & Pricing Considerations
While considering your budget for accounts receivable software, be sure to keep the following factors in mind.
Company Size
Accounts receivable software can vary greatly in price depending on how many users will need access. If you have a dedicated accounting department, they will likely be the only ones you need to onboard. If not, you may need to onboard your entire organization, resulting in a higher cost.
Current Software
A less robust accounts receivable option can sometimes be a smart financial decision if your business already makes use of software that covers some financial needs. However, it can also be useful to replace your current software with a completely new system, though this is usually more expensive.
Deployment
Using cloud-based software usually means you can expect a lower cost of entry, but you’ll need to pay a subscription fee each month rather than a single upfront payment as you would with an on-premise software option.
The Most Popular Accounts Receivable Software
Now that you know how accounts receivable software can help your business, where do you begin your search? We’ve curated a list of some of the most popular software options on the market. Check out our picks below!
The latest version of Intuit’s long-running accounting platform leverages cloud technology to enable access from any connected device. Its accounts receivable software module allows you to track payments and ensure invoices are handled on time, as well as generate reports for whatever your needs may be.
Quickbooks makes it easy to understand where your business’s finances stand and how they can be optimized.
Freshbooks’ accounts receivable module can automate everything from invoicing and payment processing, allowing you to focus on the tasks that most require human attention. It’s based in the cloud for maximum accessibility and use on the go, and it can produce in-depth reports on financial activity to make sure your records are up to date.
Freshbooks allows businesses to access financial data from any connected device.
Xero was built from the ground up for small businesses, and its accounts receivable software has the functionality to handle whatever you throw at it. It can use over 700 add-ons from its in-app marketplace to customize its interface for any business’s needs.
Making it easy to create and interpret financial statements is one of Xero’s many functions.
Questions To Ask
To get a better understanding of your company’s requirements, ask yourself the following questions:
- What is our maximum budget?
- How many of our employees will be using the software?
- What kind of deployment will work best for our needs?
- What software are we currently using that we may need to integrate with?
- What features are most important for our business?
Here are a few questions to ask when speaking with potential vendors about their software and services:
- Do you have experience working with businesses in our industry?
- What customer support and training do you offer?
- How do you ensure data security with your software?
- Is the software compatible with our existing systems?
- How does your technical support team handle help requests?
In Conclusion
Accounts receivable software can benefit your business’s efficiency, customer service and information accuracy through its automation of menial financial tasks. Picking the right option may seem daunting, but we hope this guide will help you make the right decision for your needs.
Still feeling overwhelmed in your product search? Get started today with our comparison report to gain insight into top software leaders.
The following expertteam members are responsible for creating, reviewing,and fact checking the accuracy of this content.
Khaleel Hayes is a Technical Content Writer for SelectHub, with over 4 years of experience crafting content for manufacturing, PLM, ERP and technology selection audiences. He's also a freelance writer in his spare time. His body of work includes poetry, short plays, feature articles and film reviews either self-published or in Denver publications. He graduated with a B.A. in Journalism and an English minor from Metropolitan State University of Denver in May 2018. When not writing, he enjoys classic movies and music, tasty burgers, tasteful bookstores, and breathtaking art and photography.
Hailing from the serene landscapes of Assam, India, Rohit is a seasoned professional with diverse expertise in several software categories. Armed with a Bachelor of Technology in Mechanical Engineering and an MBA in Operations Management, he brings a unique blend of technical acumen and strategic thinking to the table. His proficiency extends across dynamic fields such as Product Lifecycle Management, Hotel Management, Ecommerce, Accounting and Finance.
After graduating with a Masters in Finance from Trinity College Dublin, K K Shashank's research and detail-oriented skills led them to SelectHub. He has diverse knowledge across various software categories like Accounting, Financial Planning and Analysis, Ecommerce, Risk Management, PLM, Insurance and more since 2020.
Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter.
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