13 Best Account Receivable Software to Manage Cash Flow

Account
Receivable
Software
is
a
dedicated
financial
management
tool
to
track,
manage,
and
automate
accounting
and
invoicing
business
workflows.
It
enables
businesses
to
gain
visibility
into
the
cashflow
and
collect
payments
on
time,
which
further
helps:

• Reduce
  the
  risk
  of
  late
  payments
• Reduce
  human
  errors
• Reduce
  uncertainty
  in
  cash
  flow
  management

The
above
is
impossible
with
manual
payment
processes
that
heavily
rely
on
human
foresight
and
attention
to
detail.
Manual
tasks
mean
your
business
may
spend
more
time
fixing
data
entry
errors
or
back-and-forth
calls
with
vendors
or
customers.
If
you
have
a
high
number
of
transactions
across
your
products
and
services,
this
hinders
effectively
scaling
the
business.

Take
the
first
step
into
better
cashflow
visibility,
control,
and
management.
The
Geekflare
team
has
researched
and
listed
the
best
Account
Receivable
Software
based
on
top
features,
pricing,
and
potential
benefits.

• 
  QuickBooks
  –
  Best
  for
  Small
  to
  Medium
  Businesses

• 
  BILL
  –
  To
  Automate
  Invoice
  Payments

• 
  Melio
  –
  Best
  for
  Payment
  Flexibility

• 
  Sage
  –
  Smart
  AR
  Automation

• 
  SoftLedger
  –
  Supports
  Usage-based
  Billing

• 
  Plooto
  –
  Cash
  Flow
  Management

• 
  Invoiced
  –
  Best
  for
  B2B
  Finance
  Teams

• 
  Centime
  –
  AI-powered
  Cash
  Flow
  Prediction

• 
  Chaser
  –
  To
  Personalize
  Payment
  Reminders

• 
  BlueSnap
  –
  Best
  for
  Global
  Payment
  Optimization

• 
  NetSuite
  –
  Best
  for
  Global
  Enterprises

• 
  Kolleno
  –
  Real-time
  AR
  Analytics

• 
  BlackLine
  –
  To
  Automate
  End-to-End
  Financial
  Operations

• 
  
  Show
  moreShow
  less

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  PayPal,
  ACH,
  Apple
  Pay,
  Credit/Debit
  Cards,
  Venmo,
  On-Site
  payments

QuickBooks
by
Intuit
automates
cash
flow
management
across
invoicing,
accounts,
payroll,
and
contractor
payments.
Its
financial
health
projections
and
real-time
tracking
of
expenses,
taxes,
and
sales
help
businesses
make
informed
decisions
and
monitor
key
performance
indicators.

Based
in
Mountain
View,
California,

QuickBooks
is
scalable,
offering
tailored
plans
for
solopreneurs,
SMEs,
startups,
and
enterprises.

• 
• 
• 
• 

• 
• 

QuickBooks
Pricing

QuickBooks Plan	Monthly Price	Offerings
Simple Start	$17.50	Invoicing, expense tracking, and basic reporting.
Essentials	$32.50	Everything in Simple Start with multiple currency support, tracking employee time, and access upto 3 users.
Plus	$49.50	Everything in Essentials with inventory tracking, project management, and financial budgeting features.
Advanced	$117.50	Everything in Plus with advanced reporting, custom access control, business analytics, workflow automation, and dedicated account management.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  ACH,
  Credit
  Cards,
  Virtual
  Cards,
  BILL
  network

BILL
account
receivable
software
focuses
on
simplifying
and
streamlining
your
complete
invoicing
and
payment
collections
management.
It
can
integrate
with
your
existing
accounting
software
stack
to
track
expenses,
overdue
payments,
and
cash
flow
situations.

BILL
provides
a
dedicated
accountant
console
designed
to
give
them
visibility
to
serve
their
clients.

BILL
is
headquartered
in
San
Jose,
California,
and
caters
specifically
to
small
and
medium
businesses
(SMBs).

Its
features
are
designed
to
focus
more
on
growth
and
less
on
administrative
tasks.

• 
• 
• 
• 

• 
• 
• 

• 
• 
• 

BILL
Pricing

BILL Plan	Monthly Price/user	Offerings
Essentials	$45	Manual integration with accounting software by importing CSV files.
Team	$55	Automatic two-way sync with other software like QuickBooks, Xero, etc., a centralized inbox for bills, and custom roles for teams.
Corporate	$79	Unlimited document storage, custom approvals, recurring invoices, and more.
Enterprise	Custom Pricing	Comprehensive solution with advanced security features, dedicated support, and flexible pricing based on your organization’s specific account receivable processes.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  ACH,
  Credit
  Card,
  Melio’s
  network,
  custom
  payment
  links

Free

No
platform
subscription
fee
+
Free
ACH
transfers

Try
Melio

Melio
enables
faster
payments
for
collections
management
by
streamlining
payment
processing.
It
provides
your
customers
with
flexible
online
payment
solutions
across
bank
transfers,
cards,
single-use
virtual
cards,
and
even
paper
checks.

To
use
their
accounts
receivable
solutions,
integrate
Melio
with
your
accounting
software.
You
can
send
payment
requests
via
email
and
receive
funds
directly
into
your
bank
account.

Based
in
New
York,
Melio
is
free
to
use,
with
fees
based
on
payment
methods.
For
example,
ACH
transfers
are
free,
while
international
payments
cost
$20
flat
per
transaction.

• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

Melio
Pricing

Melio
offers
free
subscriptions
for
its
account
receivables
platform.
It
charges
transaction
fees
only
whose
percentage
depends
on
different
modes
of
payment
as
follows:

Payment Mode	Charges for Using Melio	Additional Offerings
ACH Transfers	0
Fast ACH bank transfer	1% up to $30
Checks	$1.50	The first two checks are free every month.
Fast Checks	$20
Credit Card	2.9% of transaction amount.	If you have a high credit line, Melio can provide special rates.
Instant Transfer	1% up to $50
International payments (USD only)	$20 flat fee + 2.9% fee if paid by card

Sage’s
accounts
receivable
software
automates
repetitive
tasks
via
recurring
invoices
or
auto-payments
to
boost
profitability
and
productivity.
A
standout
benefit
is
its
customer
relationship
management
capabilities,
which
automate
payment
follow-ups
and
updates.
Sage
integrates
seamlessly
with
CRM
systems
to
track
sales,
quotes,
and
invoice
statuses,
thus
enhancing
cash
flow
visibility

Based
in
Newcastle,
UK,
Sage
offers
tailored
receivable
solutions
like
Sage
Intacct
for
medium
businesses
and
Sage
50
for
small
businesses,
supporting
seamless
receivable
management.

Business
owners
can
opt
for
Sage
50
or
Sage
Intacct
depending
on
their
size
to
manage
account
receivables
with
key
features
as
given
below.

• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

• 
• 
• 
• 
• 

Sage
Pricing

Enterprises
can
explore
Sage
Intacct
to
manage
account
receivables
and
request
their
sales
team
for
free
consultations
to
learn
about
its
pricing.

If
you’re
a
small
business
owner,
opt
for
Sage
50
with
a
pricing
plan
structure
as
follows:

Sage 50 Plan	Monthly Price/User	Offerings
Pro Accounting	$60.08	Allows 1 user to access invoice and bill tracking, reporting, and automated bank reconciliation.
Premium Accounting	$103.92	Includes everything in the Pro Accounting Plan with advanced reporting, audit trails, and the ability to manage multiple companies. Supports 5 users.
Quantum Accounting	$177.17	Includes everything in Premium Accounting Plan with industry-specific functionality and role-based access control. Supports 40 users.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  Credit
  cards,
  virtual
  cards
  (Softledger
  Pay),
  Bank
  Transfer,

Softledger
is
based
in
California,
USA.
SoftLedger’s
account
receivable
software
helps
reduce
Days
Sales
Outstanding
(DSO)
and
improve
cash
flow
via
payment
automation.
You
can
integrate
credit
card
and
bank
feeds
using
SoftLedger’s
accounting
integration
API
bringing
much-needed
visibility
into
receivables.

SoftLedger
stands
out
with
its
usage-based
billing
feature.
This
means,
you
can
bill
your
customers
based
on
variable
factors
such
as
number
of
user
accounts,
API
calls,
storage
usage
etc.

• 
• 
• 
• 

• 
• 
• 

• 
• 
• 
• 
• 

SoftLedger
Pricing

SoftLedger Plan	Monthly Price	Offerings
Standard	$750	Allows managing 10 operating entities with access to 3 users and 10,000 journal lines per month.
Enterprise	$975	Everything in Standard plan with currency management.
Enterprise with Digital Assets	$1375	Everything in Enterprise plan with digital asset management features for managing crypto and other digital assets.
Startup	Contact sales	Custom pricing plans for a single entity and startup businesses.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  Credit
  Cards,
  International
  payments,
  Online
  Check
  Payments,
  Plooto
  Instant

CAD
9/month

Free
30-day
trial
of
any
plan

Try
Plooto

Plooto’s
account
receivable
automation
software
centralizes
your
invoice
and
customer
payments.
It
helps
you
capture
incoming
payments,
manage
collections
processes,
and
automate
customer
communications
for
businesses
of
all
sizes.

Plooto
also
provides
a
comprehensive

account
payable
software
with
multiple
online
payment
options
to
automate
manual
processes
of
credit
management.
Plooto
is
based
out
of
Toronto,
Canada.

• 
• 
• 
• 

• 
• 
• 
• 

• 
• 
• 
• 

Plooto
Pricing

Plooto Plan	Monthly Pricing	Offerings
Go	CAD 9	Access to 1 user to conduct up to 5 domestic transactions per month, automate invoicing, basic approval workflows, and international payments.
Grow	CAD 32	Offers unlimited domestic transactions, customizable approval workflows, and the ability to work with multiple accountant users.
Pro	Contact sales	Provides full platform access, dual controls on user actions, and priority customer support.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  ACH,
  SEPA,
  Virtual
  Cards,
  Credit
  Cards,
  Wire
  Transfer,
  EFT
  payments

Invoiced
is
a
specialized

invoicing
software
that
also
helps
automate
receivables
management
for
faster
payments
and
cash
cycle
maintenance.
It
offers
smart
workflows,
advanced
analytics,
and
seamless
integration
with
popular
accounting
and
ERP
systems.

Invoiced
helps
recover
unpaid
invoices
or
overdue
payments
so
that
your
B2B
business
owners
reduce
their
time-to-cash
waiting
periods.
The
company
is
based
out
of
Austin,
Texas,
USA,

• 
• 
• 
• 

• 
• 
• 
• 

• 
• 
• 

Invoiced
Pricing

Invoiced
has
not
made
its
pricing
plans
public
—
you
can
contact
their
sales
team
for
a
demo.

• Receivable
  Automation
  Solution

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  ACH,
  credit
  cards,
  Paypal,
  Check

Centime
Account
Receivable
Automation
Solutions
optimizes
your
collection
management
workflow
to
chase
unpaid
invoices,
reduce
overdue
payments,
and
boost
working
capital.
It
provides
AI-powered
tools
to
automate
invoicing,
reminders,
and
reporting,
while
a
customer
portal
enhances
collaboration
and
drives
electronic
payments.

Centime
also
streamlines
customer
relationship
management
with
a
dedicated
customer
portal;
hence,
you
need
not
invest
in
additional
customer
communication
tools.

The
company
HQ
is
located
in
Boston,
USA.

• 
• 
• 
• 

• 
• 
• 
• 
• 

• 
• 
• 
• 

Centime
Pricing

Centime
provides
custom
quotes
wherein
it
will
curate
features
relevant
to
your
business
processes.
Its
pricing
plan
starts
at
$149
per
month
and
increases
based
on
chosen
products
and
number
of
users.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  Stripe,
  Bank
  Transfer,
  ApplePay,
  Direct
  Debit,
  Credit
  Card,
  Debit
  Card,
  Open
  banking

Chaser
is
a
powerful
accounts
receivable
automation
software
designed
for
credit
management,
chasing
outstanding
invoices,
predicting
overdue
payments,
and
automating
the
collection
process.
It
integrates
with
popular
accounting
software,
syncs
data,
and
helps
optimize
your
AR
approach
via
revenue
forecasts
and
customer
payment
predictions.

Chaser
makes
your
business
proactive
when
it
comes
to
taking
action
for
your
collection
management
workflows.
For
difficult
customers,
it
also
provides
debt
collection
services
and
account
receivables
experts
to
improve
credit
management
and
control.

The
company
is
based
out
of
CA,
USA.

• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

Chaser
Pricing

Chaser Plan	Monthly Pricing	Offerings
Basic	$42	Access to 2 users for automated payment reminders, receivable workflow automation, and payment portal access. You need to pay separately for SMS or call credits.
Standard	$158	Access to 4 users for everything in the Basic plan with 100 free SMS and call credits, unlimited templates, and email integration in the custom domain.
Enterprise	$417	Unlimited users for everything in the Standard plan with 600 free SMS and call credits and support for multiple entity organizations.
Custom	Contact sales	If you have custom requirements, request a demo to negotiate better pricing.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  No

• Online
  Payment
  Options

  ACH
  Transfers,
  Credit
  Cards,
  Paypal,
  Digital
  Wallets,
  Payment
  API,
  International
  Transfers

BlueSnap
provides
a
wide
range
of
cash
flow
management
solutions
that
streamline
the
complete
cash
cycle
—
from
generating
quotes
and
automating
invoices,
to
managing
customer
payments.
It
accepts
payments
from
200+
regions
and
a
branded
customer
portal
to
upgrade
customer
communications
and
experience.

BlueSnap
provides
advanced
features
like
fraud
prevention,
chargeback
management,
and
compliance
to
ensure
healthy
financial
books
and
cash
flow.

The
company
is
based
out
of
Waltham,
MA,
USA.

• 
• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

• 
• 
• 

BlueSnap
Pricing

You
need
to
book
a
consultation
with
their
payments
expert
team,
for
a
custom
quote.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  Yes

• Online
  Payment
  Options

  Cash,
  Check,
  Credit
  Card,
  Electronic
  Funds
  Transfer
  (EFT),
  Bank
  Transfer,

NetSuite
is
an
advanced
collections
management
software
that
helps
you
maintain
necessary
operational
liquidity
by
streamlining
the
invoicing
and
accounts
receivable
processes.
With
customizable
dashboards
and
reporting
capabilities,
users
can
easily
track
performance
metrics
and
make
informed
financial
decisions.

Overall,
it
helps
reduce
the
credit-to-cash
cycle
by
providing
micro
and
macro
visibility
into
your
complete
account
receivables
management
efforts.

NetSuite
is
based
out
of
Austin,
Texas,
USA,
and
is
a
part
of
Oracle.

• 
• 
• 
• 

• 
• 
• 
• 
• 

• 
• 
• 
• 
• 

NetSuite
Pricing

NetSuite
charges
an
annual
license
fee
and
a
one-time
implementation
setup
fee.
The
price
depends
on
the
number
of
users,
optional
modules
chosen,
and
core
platform
features.
Contact
their
sales
team
for
a
custom
quote.

• Receivable
  Automation

  Yes

• Cash
  Flow
  Management

  No

• Online
  Payment
  Options

  Wire
  Transfer,
  ACH,
  Credit
  Card,

Kolleno
is
based
out
of
London,
UK.
Its
account
receivable
software
focuses
on
reconciliation
and
collections
management
using
real-time
analytics.
It
equips
finance
teams
with
AI
capabilities
to
automate
cash
cycles,
schedule
payment
reminders,
and
generate
real-time
reports.
It
also
helps
personalize
customer
communication
and
resolve
disputes
via
the
customer
portal.

Kolleno
centralizes
both
account
receivables
and
dispute
management
to
improve
overall
customer
payments
collection
and
their
experience.

• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

• 
• 
• 
• 
• 

Kolleno
Pricing

Kolleno’s
sales
team
will
provide
a
custom
quote
after
a
15-minute
demo
meeting.

BlackLine’s
Accounts
Receivable
Automation
product
streamlines
the
invoice-to-cash
process.
For
this,
BlackLine
adopts
a
collaborative
and
centralized
approach,
wherein
it
brings
together
and
automates
repetitive
tasks
across
invoicing,
payment
collections,
risk
management,
customer
communications,
and
more.

Blackline
enables
business
owners
of
all
sizes
to
optimize
cash
collection,
remove
manual
processes,
and
improve
cash
flow
management
to
unlock
and
maintain
working
capital
levels.

Blackline
is
based
out
of
CA,
USA.

• 
• 
• 
• 

• 
• 
• 
• 
• 

• 
• 
• 
• 
• 
• 

BlackLine
Pricing

Contact
their
sales
team
to
schedule
a
personalized
demo,
and
they
will
provide
you
with
a
custom
quote.

Best
Account
Receivable
Software
in
2024
—
Compared

What
Is
Account
Receivable
Software?

Account
Receivable
Software
helps
business
owners
track,
collect,
and
manage
money
owed
to
them
by
customers.
It
automates
the
complete
invoice-to-cash
cycle
process,
including
payment
collection,
credit
management,
and
customer
relationships.

AR
software
is
crucial
for
businesses
seeking
growth
and
digitization,
as
it
helps
them
understand
key accounting
terms related
to
cash
flow
and
revenue
recognition.
This
gives
business
owners
insights
into
outstanding
invoices
and
payment
statuses,
enabling
them
to
make
informed
decisions
to
maintain
healthy
cash
flows.

What
Are
the
Benefits
of
Account
Receivable
Software?

AR
Software
primarily
helps
centralize
account
receivable
processes
and
automate
repetitive
tasks
across
the
cash
cycle.
Doing
so
helps
business
owners
digitize
receivables
management
operations,
which
translates
to
the
below
benefits.

Streamline
Cash
Flow
Management

A
business
has
healthy
cash
flow
when
it
maintains
enough
liquidity
to
cover
daily
operations.
An
AR
software
automates
receivable
processes
to
reduce
the
time
to
clear
outstanding
balances
with
your
customers
for
timely
cash
collection.

For
example,
a
small
manufacturing
company
can
use
AR
software
to
offer
subscriptions
that
provide
upfront
working
capital,
helping
predict
revenues
and
allocate
resources
efficiently.

Improve
Accuracy

Manual
data
entry
is
prone
to
errors,
especially
with
growing
transaction
volumes.
Scaling
your
business
requires
AR
software
that
automatically
syncs
data
from
CRM,
sales,
and
accounting
software,
thus
ensuring
accurate,
consistent,
and
reliable
financial
records.

For
example,
manually
updating
customer
payment
details
can
lead
to
irreversible
errors,
like
sending
incorrect
amounts.
This
will
affect
your
cash
flow
and
hurt
customer
trust.
AR
software
matches
invoices
with
customer
payment
details,
thus
ensuring
correct
amounts
are
recorded
without
the
risk
of
human
error.

Real-Time
Insights

Since
AR
software
digitizes
account
receivable
workflows,
it
becomes
easy
to
track
the
below
key
metrics.

• 
  Days
  Sales
  Outstanding
  (DSO):
  Measures
  the
  average
  days
  to
  collect
  payment
  after
  a
  sale;
  lower
  DSO
  indicates
  better
  cash
  flow.
• 
  Bad
  Debt
  Ratio:
  Indicates
  the
  percentage
  of
  receivables
  expected
  to
  be
  uncollectible,
  helping
  assess
  credit
  risk.
• 
  Collection
  Effectiveness
  Index
  (CEI):
  Evaluates
  the
  effectiveness
  of
  collection
  efforts
  over
  a
  specific
  period,
  highlighting
  areas
  for
  improvement.
• 
  Accounts
  Receivable
  Turnover
  Ratio
  (ART):
  Assesses
  how
  efficiently
  a
  company
  collects
  its
  receivables;
  a
  higher
  ratio
  signifies
  effective
  collection
  processes.

Further,
AI-enabled
AR
software
provides
custom
dashboard
visuals
and
actionable
insights
using
algorithms.
It
helps
take
appropriate
actions
to
resolve
the
situation
before
it
significantly
impacts
cash
flow.

Enhanced
Customer
Experience

AR
software
facilitates
effective
communication
and
personalized
interactions.
One
can
use
AI
to
draft
personalized
follow-up
overdue
payment
sequences
and
send
them
at
the
right
time
as
per
customers’
behavior
patterns.

For
example,
in
case
of
a
billing
dispute,
the
AR
software
streamlines
resolution
by
tracking
communication
history
and
providing
quick
access
to
relevant
documents.
This
helps
make
customers
feel
valued
and
understood.

Customizable
Workflows

Custom
design
account
receivable
workflows
using
AR
software
that
allows
conditional
logic,
process
design,
and
data
sync
capabilities.
This
brings
flexibility
for
business
owners
to
optimize
their
collection
management
strategy.

For
example,
you
can
create
different
invoice-to-payment
pathways,
payment
terms,
or
follow-up
sequences
for
different
customer
segments.

How
To
Choose
the
Account
Receivable
Software?

1. 
   Receivable
   automation
   requirements:
   List
   the
   manual
   tasks
   in
   your
   AR
   process
   that
   need
   automation,
   and
   ensure
   the
   AR
   software
   you
   choose
   offers
   the
   required
   automation
   features.
2. 
   Transaction
   volume:
   Determine
   the
   number,
   frequency,
   and
   average
   value
   of
   invoices
   sent
   out
   monthly.
   This
   will
   help
   you
   choose
   an
   appropriate
   pricing
   plan
   and
   negotiate
   with
   AR
   software
   vendors
   to
   get
   high-volume
   discounts.
3. 
   Customization:
   Identify
   your
   specific
   invoicing
   needs,
   like
   custom
   templates
   or
   multi-currency
   support,
   to
   ensure
   the
   AR
   software
   meets
   these
   requirements.
4. 
   Integrations:
   List
   all
   current
   internal
   or
   third-party
   software
   used
   in
   accounting,
   ERP,
   and
   CRM,
   etc.
   Ensure
   the
   chosen
   AR
   software
   (like
   QuickBooks,
   SoftLedger,
   BILL,
   Centime,
   Chaser)
   integrates
   with
   these
   to
   avoid
   data
   migration
   and
   syncing
   issues.
5. 
   Analytics:
   List
   the
   key
   metrics
   your
   business
   tracks
   to
   monitor
   accounts
   receivable
   workflows.
   Ensure
   the
   chosen
   AR
   software
   can
   measure,
   improve,
   and
   provide
   insights
   through
   its
   reporting
   and
   analytics
   features.
6. 
   Users:
   If
   you
   have
   large
   teams,
   you
   may
   require
   to
   choose
   AR
   software
   like
   Melio
   that
   provides
   unlimited
   user
   access
   with
   approval
   workflows.
   For
   small
   or
   medium
   business
   teams,
   opt
   for
   AR
   software
   like
   Sage,
   Centime,
   or
   Chaser
   that
   provide
   incremental
   seats
   with
   higher
   pricing
   plans.
7. 
   Security:
   If
   you
   are
   into
   a
   regulated
   industry
   or
   multi-entity
   that
   requires
   essential
   features
   for
   financial
   data
   security,
   opt
   for
   AR
   software
   like
   QuickBooks,
   Chaser,
   BILL,
   Sage,
   SoftLedger,
   etc.,
   that
   offer
   dedicated
   enterprise
   plans.
8. 
   Budget:
   Determine
   the
   budget
   for
   AR
   software.
   For
   example,
   if
   you
   have
   limited
   use,
   opt
   for
   usage-based
   billing,
   if
   you
   have
   consistent
   transaction
   volume,
   opt
   for
   a
   subscription-based
   model.
9. 
   Reviews:
   Consider
   user
   reviews
   and
   case
   studies
   for
   the
   AR
   software
   and
   opt
   for
   demos
   or
   pilot
   tests
   to
   gauge
   alignment
   with
   your
   business
   needs.
10. 
    Customer
    Support:
    Assess
    the
    level
    of
    customer
    support
    offered,
    including
    access
    to
    a
    knowledge
    base,
    FAQs,
    and
    responsiveness
    to
    assist
    with
    setup
    and
    troubleshooting.
    User
    reviews
    of
    AR
    software
    vendors
    like
    SoftLedger,
    Invoiced,
    Chaser,
    BlueSnap,
    Kolleno,
    and
    BlackLine
    have
    reported
    good
    customer
    support.

5
Common
Challenges
in
AR
Management
and
How
AR
Software
Helps

1. 
   Disorganized
   Ledger
   Management:
   Maintaining
   accurate
   books
   with
   manual
   data
   entry
   can
   create
   confusion,
   leading
   to
   costly
   errors.
   AR
   software
   centralizes
   all
   financial
   data,
   providing
   a
   clear
   and
   organized
   ledger
   that
   simplifies
   tracking
   and
   managing
   invoices
   and
   payments.
2. 
   Communication
   gap
   with
   customers:
   Handling
   customer
   communication
   manually
   can
   lead
   to
   misunderstanding
   about
   overdue
   payment
   terms
   and
   unpaid
   invoices.
   AR
   software’s
   automated
   communication
   features
   send
   personalized
   reminders
   and
   status
   updates.
   This
   enhances
   clarity
   to
   nurture
   positive
   customer
   relationships.
3. 
   Inefficient
   Collection
   Processes:
   Manual
   collection
   processes
   like
   checks
   or
   cash
   are
   time-consuming
   and
   can
   lead
   to
   revenue
   loss
   if
   not
   tracked.
   AR
   software
   provides
   online
   payment
   options
   and
   helps
   consistently
   follow
   up
   on
   overdue
   payments
   to
   improve
   cash
   flows.
4. 
   High
   Days
   Sales
   Outstanding
   (DSO):
   A
   prolonged
   DSO
   simply
   translates
   to
   longer
   days
   in
   receiving
   cash,
   thus
   straining
   your
   daily
   operational
   expenses.
   AR
   software
   automates
   reminders
   and
   follow-ups
   to
   ensure
   timely
   communication
   with
   customers
   to
   nudge
   them
   to
   complete
   unpaid
   invoices
   and
   take
   necessary
   actions
   to
   halt
   servicing
   the
   customers.
5. 
   Tricky
   Credit
   Policies:
   Without
   clear
   credit
   policies,
   businesses
   may
   extend
   credit
   to
   risky
   customers,
   leading
   to
   bad
   debts.
   Advanced
   AR
   software
   can
   integrate
   credit
   scoring
   and
   risk
   assessment
   tools,
   helping
   businesses
   make
   informed
   decisions
   about
   credit
   management.

5
New
Technologies
Shaping
the
Future
of
Accounts
Receivable
Software

• 
  Generative
  AI:
  Using
  mere
  text
  or
  image
  prompts,
  business
  owners
  can
  generate
  invoices
  from
  scratch,
  prepare
  reports,
  deploy
  AI
  agents
  to
  handle
  customers
  like
  humans,
  and
  predict
  customer
  payment
  behaviors
  to
  design
  personalized
  collection
  management
  strategies.
• 
  Customer
  experience:
  Trends
  like
  user-friendly
  self-service
  customer
  portals,
  AI-powered
  customer
  support,
  subscription
  management,
  and
  personalized
  follow-ups
  will
  become
  key
  to
  enhancing
  customer
  satisfaction.
• 
  Mobile
  payments:
  Mobile
  apps
  help
  improve
  access
  to
  financial
  data
  on
  the
  go
  to
  take
  required
  actions
  and
  cater
  to
  customer
  queries.
  It
  captures
  offline
  bills
  using
  OCR
  technology
  for
  records
  and
  allows
  customers
  to
  clear
  unpaid
  invoices
  from
  mobile.
• 
  Internet
  of
  Things
  (IoT):
  Sensors
  in
  products
  can
  automatically
  trigger
  invoices
  upon
  shipping,
  while
  AR
  software
  centralizes
  invoice
  processing
  and
  payment
  reconciliation
  as
  the
  product
  moves
  in
  its
  delivery
  cycle.
• 
  Robotic
  process
  automation
  (RPA):
  Helps
  deploy
  bots
  to
  automate
  manual
  tasks
  like
  invoice
  generation,
  data
  entry,
  processing
  customer
  claims,
  payment
  reminders,
  and
  more.

How
Can
Blockchain
Enhance
Transparency
and
Security
in
AR
Processes?

Blockchain
improves
transparency
and
security
in
AR
workflows
as
explained
below.

• 
  Immutable
  Records:
  Blockchain
  creates
  unchangeable
  records
  of
  all
  transactions.
  This
  ensures
  that
  financial
  data
  remains
  accurate
  and
  tamper-proof
  over
  time.
• 
  Enhanced
  Security:
  The
  decentralized
  nature
  of
  blockchain
  protects
  data
  from
  unauthorized
  access
  and
  manipulation,
  significantly
  reducing
  the
  risk
  of
  breaches.
• 
  Smart
  Contracts:
  Self-executing
  contracts
  automate
  AR
  processes
  by
  enforcing
  agreed-upon
  terms.
  It
  ensures
  timely
  payments
  and
  reduces
  the
  need
  for
  manual
  intervention.
• 
  Real-Time
  Updates:
  A
  shared,
  distributed
  ledger
  accessible
  to
  all
  parties
  ensures
  that
  everyone
  has
  access
  to
  the
  same
  information
  in
  real
  time,
  eliminating
  information
  silos.
• 
  Fraud
  Prevention:
  The
  transparency
  and
  traceability
  of
  blockchain
  transactions
  make
  it
  difficult
  for
  fraudulent
  activities
  to
  occur.
  It
  safeguards
  the
  integrity
  of
  financial
  operations.

Based
on
the
above
benefits,
here
are
some
notable
blockchain
use
cases
for
account
receivable
management.

Tamper-proof
invoicing

Blockchain
provides
a
secure
and
tamper-proof
system
for
tracking
invoices
throughout
their
lifecycle. Each
invoice
is
recorded
on
a
decentralized
ledger;
hence
all
parties
involved
have
access
to
the
same
information.
This
further
reduces
discrepancies
and
misunderstandings,
as
blockchain’s
immutable
nature
protects
invoice
data
from
fraud
and
unauthorized
alterations.

Account
Receivable
Financing

Using
blockchain,
business
owners
can
tokenize
their
receivables,
creating
digital
representations
of
invoices
that
can
be
easily
transferred
and
financed.
This
tokenization
process
enhances
liquidity,
as
businesses
can
sell
or
pledge
their
receivables
to
investors
or
financial
institutions
without
intermediaries.

Moreover,
blockchain’s
decentralized
nature
ensures
all
parties
access
the
same
immutable
records,
reducing
disputes
and
increasing
stakeholder
trust.

Managing
intercompany
transactions

Due
to
poor
traceability,
identifying
intercompany
transactions
within
a
group
is
complex
and
costly.
Blockchain
tokenizes
invoices
and
helps
automate
matching
Entity
A’s
Accounts
Payable
with
Entity
B’s
Accounts
Receivable.
This
eliminates
manual
tasks
and
enhances
transparency
between
financial
systems
(ERPs).

More
on
Accounting