Accounts receivable (AR) software helps automate and optimize customer invoicing and payment collection. It streamlines financial transactions between a company and its customers, helping businesses of all sizes get paid faster, reduce manual work, and improve payment accuracy. This ultimately boosts cash flow, enhances profitability, and provides important data for financial reporting. It is used by accountants and the employees responsible for accounts receivable, but sales and customer service teams can also use it to track customer payment statuses and answer customer questions related to billing or payments.
While standard accounting software includes basic AR functions, specialized AR solutions offer more advanced features, such as generative AI, predictive analytics, and customer self-service portals. This software mostly integrates with accounting software or enterprise resource planning (ERP) systems, and larger companies often connect it with financial planning and analysis (FP&A) software for even greater benefits.
To qualify for inclusion in the Accounts Receivable category, a product must:
Manage different types of customer transactions such as invoices, credits, or payments
Match invoices, credits, and payments with quotes and sales orders to ensure the correct amounts are being processed
Provide workflows that can be used to define rules and exceptions for AR processing
Include customizable approval processes for all types of AR transactions
Deliver reports and analytics on the status of invoices or payments, customer credit, or transaction history
Offers forecasting capabilities to predict future cash flow
Integrate with accounting software or accounting modules of ERP solutions
