Accounts receivable automation benefits businesses in their accounting and financial processes. The software used for this can do tasks on check writing, bookkeeping, and invoicing.
The best accounts receivable (AR) automation software in the market is the one that can help with both the simplest of tasks to the advanced ones. Advanced tasks help businesses manage their cash flow, presenting in-depth reports, tracking status, and many more.
Having a decade of experience running a business and helping other businesses grow, I can honestly say implementing the AR automation solution in your business is a huge advantage. It enables you to save time and avoid mistakes that are caused by human error.
If you’re planning to use such software for your business, I have an excellent list for you below. I’ll review each software and showcase its best features and the pros and cons of using it.
- What Is The Best Accounts Receivable Software?
- 1. Xero – Top Pick
- 2. QuickBooks – Most Useful Integrations
- 3. NetSuite – Real-Time Insights
- 4. Bill.com – Suited For Startups
- 5. Sage – Construction & Real Estate Industry
- 6. Wave Accounting – Completely Free
- 7. Plooto – Most User-Friendly Interface
- 8. Cforia – Global Order-To-Cash Automation
What Is The Best Accounts Receivable Software?
If you’re in a hurry, check out my top 3 picks at a glance: Xero, QuickBooks, and NetSuite.
|Best overall. Affordable all-in-one solution for most accounts receivable tasks. Starts at $20/month.||Best for integrations. Flexible platform for connecting to 3rd party software. Starts at $12.50/month.||Feature-rich. Powerful features and tools for efficient accounting. Starts at $1,000/month.|
|Try Xero||Try QuickBooks||Try Oracle|
Want the full guide? Here it is, with all the details and info on what you need to know what’s the best accounts receivable automation software available in the market.
1. Xero – Top Pick
Affordable Accounts Receivable Software [Free Trial | $20/mo]
Xero considers itself the one solution for everything.
It automates repetitive tasks for your accounts receivable team, like reporting and invoicing. It also helps with filing and making end-of-year tax returns easy.
Basically, it aids businesses in getting the whole financial picture.
When using the software, it was easy to see what bills are coming in and out. You will see what is due for payment and when they’ve been paid.
With its accounts payable software, you’ll feel more in control of what bills are due and when. It makes cash flow management easier.
It also allows scheduling and batch payments. You can pay multiple bills in one transaction which is a great feature to have if you don’t have much time for these types of processes.
All you need to do is to bundle bills together, schedule the payment date, and then the payment goes out.
All of this can be done with just a few simple clicks. It takes out all the manual processes, which rids any forgotten bills needed to be paid and incurs bad debt expenses.
Xero knows how putting bank transactions into your books is a long and tedious process. We know how this process can be frustrating and time-consuming at the same time.
That’s why with Xero’s bank connections, information flows directly into it each business day. It makes it easy to keep the accounts up to date.
Adding a bank account in the software is easy too. You just need to click on Add Bank Account and follow the prompts. You can set up multiple feeds with different bank accounts.
Plus, when it comes to security, all of the financial information is safe and secure. Every transaction between Xero and your bank is encrypted.
Another feature I liked was its ability to provide a complete picture of contact activity and history.
It allows you to see contact information and financial settings. It also gives access to balances, including foreign currency amounts.
Interested as to how Xero performs against similar counterparts? Take a look at this Xero vs Freshbooks review and see which works best for you.
Pros And Cons Of Xero
|Easy to use interface||Integration needs improvement|
|Can be accessed through any device|
|Real-time bank feeds|
Xero Pricing Plan
- Starter ($20/mo.): This is a good plan for new businesses and self-employed users. The plan allows sending of quotes and 20 invoices. It gives access to activities like reconciliation of bank transactions, and capturing bills and receipts.
- Standard ($30/mo.): This one is an excellent plan for growing businesses. The Standard plan allows sending invoices and quotes, bulk reconciling transactions, and short-term cash flow and business snapshots.
- Premium ($40/mo.): The Premium plan is great for established businesses. It gives access to the plans above, plus the use of multiple currencies.
Three optional add-ons:
- Track projects ($7/mo.)
- Claim expenses ($4/mo.)
- Analytics plus (free until January 31st, 2022)
Learn more about Xero and see if it’s the accounting software you’ve been looking for.
2. QuickBooks – Most Useful Integrations
Popular Solution For Independent Accounting Firms [Free Trial | $12.50/mo]
QuickBooks is the accounting solution software of Intuit made for small businesses, startups, and independent accounting firms.
This one’s a great choice for various businesses, especially for those who have bookkeepers, accountants, and in-house finance teams.
Its first noticeable and useful feature would be the dashboard. Every linked bank account you need for your business can be seen there. It gives you a quick overview of how your business is doing.
When you connect your bank and credit card accounts, the software will automatically download and categorize the transactions for you. So come the time of reconciling your books, you can quickly review these transactions.
Its record-keeping and reporting features are two of the best features I’ve noticed when using the software. The process of keeping thorough and detailed records in it was made easy.
You can add reference numbers, permit numbers, attachments, and even memos. It even allows its users to have multiple categories when splitting the expense.
Additionally, QuickBooks also helps with inventory management. This will greatly help businesses track their inventory and the cost of goods.
One important feature I loved when using it was the ability to set up low stock alerts. This feature rids the constant monitoring of stock inventory.
Along with inventory management, it can also create purchase orders, and manage and sync your inventory with big platforms like Amazon and Shopify.
The integration opportunities you’ll see with QuickBooks are one of a kind. It surprised me when the accounts receivable automation software gives you access to a marketplace of over 600 applications.
Although you won’t be using each one of them, it still gives you a wide variety of options to choose from. These options can significantly help with your business’s functionality and allow you to get rid of any additional work from other third-party applications.
For example, if you want to prepare for tax season, you don’t have to use any other application – you can do it in QuickBooks. If you want to run payroll, you can also do that in the software alone.
If QuickBooks isn’t something you’re looking for but you’re still interested in platforms similar to it, take a look at the best QuickBooks alternatives available in the market.
Alternatively, read through a comparison with Quickbooks vs Freshbooks as to how both go toe-to-toe against each other.
Pros And Cons Of QuickBooks
|Lots of integration||Average customer support|
|Numerous useful features||Occasional system crash|
|Great accounting reports||You are not allowed to send a remittance directly from your account.|
QuickBooks Pricing Plan
- Simple Start ($12.50/mo.): This is for businesses that need basic features like collecting sales and sending invoices. The plan is good for 1 user and gives access to tracking income and expenses, invoices, tax deductions, and managing of cash flow.
- Essentials ($25/mo.): This plan still fits small businesses that need an all-in-one place to do all accounting activities. Essentials give access to a maximum of 3 users; it can capture and organize receipts, run standard reports, time tracking, and manage bills.
- Plus ($40/mo.): The Plus plan is considered the most popular plan for users. It can cater to 1 to 5 users. It’s great for users that need a clear view of projects and products. This plan gives access to inventory tracking and tracking of project profitability.
- Advanced ($90/mo.): This is ideal for businesses that have complex operations that need tool integration to make things easier and smooth. It has customizable reports and automated workflows. It allows 1-25 users, has analytics and insights, 24/7 dedicated support, and manages employee expenses.
See all of Quickbooks’ features that come with every pricing plan they have. Check it out if it’s fit for your accounting needs.
3. NetSuite – Real-Time Insights
Best Single Cloud-Based Platform [Free Trial | $1,000/mo]
NetSuite offers real-time insights and robust automation capabilities in all things accounts receivable.
The system integrated into the software is configurable with AR-specific dashboards that put you in control of every aspect and process.
The dashboard can be customized and placed with reminders and links to recurring actions and reports. This was quite useful since it can be a reminder page when things get busy with the business.
The customization of the dashboard can also make teams accelerate collections and hasten the process of days sales outstanding (DSO).
NetSuite also maintains accurate customer data, which monitors contacts, transaction history, items purchased, open invoices, communication history, and many more.
Its configurable user roles enable the AR team to delegate tasks and specify who has access to accounts, modify records, and secure customer information.
Automated invoicing is also a feature that the software has. It rids the manual work of creating customer invoices which also avoids human errors along the way. This feature automatically converts sales orders to invoices as orders are completed.
Other than the invoicing process, NetSuite automates billing, data entry, and cash application processes. It can even improve dunning and collections to reduce DSO.
It also allows you to customize invoice templates to meet some of the customers’ needs regarding their billings.
You can bill by mail, email, or fax. They can easily calculate VAT, sales, and other taxes.
Payment management can be a hassle when done manually, especially when you’re juggling multiple tasks. Good thing the software automatically matches customer payments to open invoices or even applies a single payment to multiple bills.
The software can track customer deposits against performance milestones for more accurate billing and apply for credits automatically if needed.
It also allows companies to automatically send reminders in multiple languages and currencies before or after payment is due to show flexibility in their utilities.
The last feature I’d like to point out would be NetSuite’s reporting. Any reporting feature should be easy to use and understand, and that’s exactly what this software gives.
Its AR reports use tools and customs segments that allow a multidimensional analysis of receivables and data. It can report on unpaid balances per region, salesperson, distributor, and other categories you can think of.
It even has a tracking payment history to see which customers are consistently paying late and on time – this helps improve collections forecast.
Pros And Cons Of NetSuite
|Excellent help desk||Costly plans|
|Highly customizable||Additional payments for advance modules and SuiteApps|
|Provides in-depth reports|
|Scalable accounts receivable automation software|
|Offer multiple payment options when sending digital invoices.|
NetSuite Pricing Plan
- NetSuite Limited Edition ($1,000/mo.): This pricing plan is for small businesses. It’s ideal for companies that do not require 10 user licenses and have less than 50 employees.
- NetSuite Mid-Market Edition ($2,500/mo.): This particular plan is fit for companies that require more than 10 users and or have two or more legal entities that need the ability to perform consolidated financial reports for multiple currencies.
- NetSuite Modules (varies per module): NetSuite offers several add-on advanced modules that you can choose to license based on your business needs. The modules here can be purchased in singles or bundles.
Explore all the products of NetSuite and check which ones fit the processes that your business has.
4. Bill.com – Suited For Startups
Best For Businesses Looking For A Simple Accounting Solution [Free Trial | $39/mo]
Bill.com is perfect for any business that doesn’t need an enterprise-level solution. It’s one of the simplest and easy-to-use platforms on this list.
The software stores invoices in a single location, automatically capture relevant data and route them for approval. Invoices can be emailed to your addresses and can also be dragged and dropped to your desktop.
Aside from invoices, you can also use it to keep other contracts and vendor documents in one place, making it easy for inquiries and audits.
The business uses a smart assistant to automatically capture data like the date, vendor name, payment information, and many more. This rids data entry and any human errors.
Additionally, this platform allows you to communicate with your customers directly through its system. It helps with setting up auto-charge and auto-pay.
It can also sync received payments directly with your accounting system.
Other features include:
- Credit Card & ACH Options: You can use these payment processing options to accept payments via credit card and ACH. It’s a feature that helps with configuring a billing system tailored to what your customers need.
- Approval Process: The software allows the configuration of multiple approvals on bills for checks and balances.
- Sorting Options: You have the option to sort bills and invoices by the due date, amount, vendor name, and others.
- Multiple Organization Options: This feature works well for users that have multiple businesses. They can easily switch between business accounts on one platform.
Pros And Cons Of Bill.com
|Ease of use||Limited integrations|
|Great storage for invoices and other documents||Customization can be improved|
|Excellent approval and automation processes|
Bill.com Pricing Plan
- Essentials ($39/mo.): This plan allows users to import and export CSV files into accounting software manually. It has features like invoice data capture, unlimited document storage, and 360-degree vendor info.
- Team ($49/mo.): The Team plan integrates with QuickBooks Online, QuickBooks Pro/Premier, and Xero. It gives access to ACH, check, credit card, international wire transfer, standard approval policies, and custom user roles.
- Corporate ($69/mo.): Considered as the recommended plan, it gives access to the receivables product of the business. Customized invoice templates can be created, payment status tracking, automated email reminders, auto-pay, and auto-charge.
Check out the whole picture of what this platform can do for your accounts receivable processes.
5. Sage – Construction & Real Estate Industry
Best Accounts Receivable Automation Software For Startups & Mid-Sized Companies [Free Trial | $340/yr]
I found Sage as an excellent software for small business accounting processes. It has customizable invoices wherein users can design it in a way that represents their brand.
Along with its built-in card payment support, users can quickly take payment details. It even has a Pay Now button so customers can pay instantly from their phones or other devices.
The software also makes it easy for business owners and teams to track the progress of the invoices. They can see if it’s sent, viewed, and paid.
With automated bookkeeping, it makes its users focus on what matters the most.
You can also use it to upload receipts for better file and document management. On top of that, all of the received information is automatically extracted, categorized, and posted to its accounting with complete accuracy.
In terms of banking, the software supports all the major names such as:
- National bank
This allows you to connect your accounts with ease. Linking bank accounts also means that bank transactions will flow effortlessly and securely in the software.
Its intuitive dashboard is a feature I love. It gives instant visibility on key information, which can help you in making informed decisions.
You can also always see businesses’ cash flow – who they owe money to and who owes them.
The dashboard also contains reporting features; it makes it easy to see how the business is performing and allows you to make data-driven decisions.
Moreover, Sage allows users to calculate, validate, and submit them with ease when it comes to doing tax returns. It even has a feature of inviting accountants and colleagues to support collaboration and clear communication securely and in real-time.
One advantage of Sage is it created an AR process that helps you identify any changes in customers’ payment behavior.
This process is called business credit management automation, an AI-powered order release recommendation that provides customer data to improve cash flow and identify credit risks. All data are automatically extracted from your CRM tools.
Pros And Cons Of Sage
|Provides a very in-depth reporting function||Help desk queues can take time|
|Offers features on budgeting, cash flow forecasting, job costing, and many more||Occasionally slows down|
|Easy integration with third-party apps and plugins|
|Include credit collections management to minimize bad debt and reduce DSO|
Sage Pricing Plan
- Pro Accounting ($340/yr.): This gives access to simple accounting features and allows only 1 user. It’s good for solopreneurs and small businesses. It has features for expense management, bills payment, invoicing, inventory tracking, and management.
- Premium Accounting ($528/yr.): The price for this plan increases depending on the number of users. The $528 per year is only for 1 user. The Premium Accounting plan gives access to advanced budgeting tools, tracking transactions and errors, job costing by phase, and cost level.
- Quantum Accounting ($876/yr.): The same thing as Premium Accounting, the price of the plan increases as the number of users increases. The plan gives access to role-based securities, automatic updates and enhancements, and unlimited chat support.
Explore more of Sage’s products to see if it’s the right software for your business.
6. Wave Accounting – Completely Free
Easy-To-Navigate Accounts Receivable Automation Software [Free]
Wave helps with invoicing, billing, payment tracking, payroll, and finance management. It’s designed to help businesses make efficient bookkeeping processes.
Invoice and estimates are some of the features that Wave has. It’s one of those applications that are easy to create and send invoices.
It has several customization options and automation to streamline the whole process.
Standout features of Wave’s invoicing include:
- Invoice templates
- Invoice dashboard
- Invoice scheduling
- Invoice status tracking
- Automated invoice reminders
As for its inventory features, it’s pretty basic and can’t be used for tracking inventory. It’s only good for adding item names, descriptions, sale prices, as well as marking bought and sold items.
Software can’t be on this list if it doesn’t have a reporting feature. Wave has 12 customizable reports that businesses can use.
The standout features include reports on cash flow, sales tax, purchases by vendor, account balances, and account transactions.
If you’re interested, check out how Wave stands against Freshbooks as an accounting software.
Pros And Cons Of Wave
|Get started for free||Not for large businesses|
|Easy to use||Customer support needs improvement|
|Has everything for a simple automated accounts receivable software|
|Send customers a follow-up email when payment is due to avoid late payments|
Wave Pricing Plan
Wave Accounting is a free invoicing and accounting software. Make sure to check its full product page to see if it’s an application worth your time.
7. Plooto – Most User-Friendly Interface
Best For Startups & Mid-Scale Companies With High Volume Bills [Free Trial | $25/mo]
Plooto is a good payment management platform that’s suitable for small to medium-sized businesses.
This platform streamlines account payables and receivables by having all of your company decision-makers on one single platform. It allows these people to make approvals on the go using mobile phones.
It is also one of those platforms that rid the tedious process of manual entries. You can simply integrate their accounting software, and all details about their vendors, customers, bills, and invoices will sync into the platform.
A great thing about this software is it provides a superb customer experience. Payments can be processed even if the user doesn’t have a Plooto account – all it needs is their email address.
When the payment is made, your customers receive an email to give their necessary bank information and accept the funds.
Pros And Cons Of Plooto
|Simplicity of the processes requires minimal effort||Payment from other countries is limited|
|Excellent for small business process automation||A bit costly for businesses who don’t have a lot of transactions|
|Enable the automatic collection process for recurring payments|
Plooto Pricing Plan
Plooto has two pricing plans but comes at the same price of $25/mo. The only difference is how you’re going to use the platform.
- For Individual Businesses & Accountants/Bookkeepers: It comes with unlimited users per business, approvers, customers and suppliers, and unlimited bank connections. It also has free two-way integration with QuickBooks and Xero, free live support, and accountant/bookkeeper collaboration.
Start using Plooto with a free trial to see if it’s the platform for you.
8. Cforia – Global Order-To-Cash Automation
Powerful Accounts Receivable Automation Software For Aerospace, Health, & Food Industry [Custom Pricing]
I am ending this list with a powerful software called Cforia. The software was created by technology veterans who have extensive experience in ERP applications.
It’s also best suited for the following industries:
- Food services
- Health sciences
- Industrial manufacturing
- Transportation and logistics
- Engineering and construction
Cforia has a ton of benefits for businesses using its software. It can help with invoices and billing since it can set up customizable rules that send automated letters to customers for quick and easy payments.
The software also can improve collector efficiency by automating daily collection tasks such as reminders, task lists, and customer communication.
Additionally, Cforia can also improve the self-service aspect of any business by allowing customers the ability to view, reprint, dispute, and pay their invoices online through the software’s online customer self-service portal.
Pros And Cons Of Cforia
|Excellent features for businesses to take advantage||Steep learning curve|
|Great automation for seamless processes|
Cforia Pricing Plan
There’s no clear pricing plan for Cforia. It will depend on the cash solutions your business is interested in. Learn more about Cforia by requesting a demo from its team.
Accounting processes aren’t easy and simple. They can be time-consuming and sometimes a headache to do. That’s why most businesses settle in using accounts receivable automation software to make things easier in their business.
Using account receivable automation software for your business can greatly streamline your accounting processes.
But you shouldn’t settle for any software; you should go for the one that can make your processes a lot easier.
Out of all the software I’ve reviewed above, my top pick is Xero.
Xero is great for businesses of all sizes. It is well-developed and offers strong accounting and ample features, reports, and integrations. Combining all of its features, it makes every accounting process easier and manageable.
Do you have your own favorite accounts receivable automation software? Share it with us by leaving a comment below!