Are you tired of the complexities and challenges in managing your accounts receivable (AR) process? Are late payments, manual collections, and cash posting causing repeated headaches for your business? You’ve come to the right place. The following guide explores the most common AP pain points and shares the top solutions to simplify and streamline your receivables.
Accounts receivable is a decentralized process that involves invoicing customers and collecting payments. However, the process is often complex and non-linear, involving tasks such as invoice presentment, payment acceptance, collections, and cash posting. Unlike accounts payable, accounts receivable is less of a predictable workflow since much of the process depends on variables controlled by the customer like when and how they pay.
This dynamic can make for a painful AR experience. Many businesses struggle with late payments, manual reminder systems, and tiresome reconciliation processes, among other challenges. Here's a breakdown of popular AR pain points:
1. Late payments and overdue invoices can strain cash flow and create financial uncertainty for your organization.
2. Disputes and discrepancies in invoices require careful investigation and resolution to maintain healthy customer relationships.
3. Ensuring accurate and up-to-date customer information can be a struggle, impacting communication and payment collection.
4. The need to balance assertive collection efforts with maintaining customer goodwill.
5. The administrative burden of manual data entry and reconciliation processes can be time-consuming and prone to errors.
Effectively addressing these challenges is crucial for a well-functioning accounts receivable department. In the following section, we’ll dive into top-performing AR automation solutions and share their respective pros and cons. If you’re evaluating AR automation solutions, be sure to consider your unique pain points before finalizing your decision.
Centime's powerful AR automation solution optimizes the AR workflow to improve collections effectiveness, reduce overdue payments and boost working capital - all while tracking industry-standard, account-level key performance indicators.
Cash connects every part of your business, so why fragment your cash management with disparate tools? Centime enables you to automate AP and AR, monitor cash flow, secure a new credit line and manage multiple bank partnerships – all in one integrated platform.
Invoiced offers a straightforward accounts receivable software that automates billing, collections, payments, and reporting within a single, digital platform. It aims to reduce fraud and vendor impersonation by providing clients with an invoice network to send invoices/payments and store documents.
According to public G2 reviews, current Invoiced users report the following pain points:
Tesorio offers cash forecasting and accounts receivable automation. They power their smart workflow tools and collections forecasting with machine learning to get accurate, easy data for clients.
HighRadius is another popular AR automation tool for enterprises. The platform offers a number of AI-driven finance solutions for the back office. They offer two specific solutions for accounts receivable automation: HighRadius One (for mid-market customers) and HighRadius Enterprise (for larger clients).
Billtrust offers a suite of unified AR solutions, from collections and cash application to credit and eCommerce. The platform is best known for its EIPP (electronic invoice presentment and payment) capabilities, which provide a similar experience to that of a payment portal.
GETPAID by FIS Global is one of the most comprehensive end-to-end AR automation solutions today. The platform is best suited for automating order-to-cash processes for large enterprises handling more than 100k invoices per year.
When selecting an AR automation provider, it's crucial to assess your business's pain points and requirements. Consider the following factors:
There are multiple accounts receivable automation solutions that offer a pathway to streamline your AR process, reduce manual efforts, and optimize cash flow. Whether you're seeking invoice presentment, collections management, payment acceptance, or cash posting, there are comprehensive AR solutions available to meet your needs.
In reality, the answer will depend on factors like your team’s unique needs, budget and current accounting system. Make sure to consider the specific needs of your business, including your software integrations, accepted payment methods and workflows, before finalizing your decision.
By understanding your pain points and evaluating providers based on their capabilities, integration options, and customer support, you can select an AR automation solution that fits your business requirements and empowers you to take control of your accounts receivable process.