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What is the best AR Automation software?

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Usually claiming something–whether it’s a cup of coffee or a new set of wheels–is “the best” comes down to a matter of opinion. Or a vote. But when it comes to AR automation software, determining which one is the best is straightforward with little room for debate.

Of course there are always factors to consider such as the size of your business and budget, but the bottom line is the best account receivables software is the one that’s going to give you all the features you need to streamline your accounts receivable workflows–without complicating matters with a bunch of bells and whistles you don’t need (or want to pay extra for).

In this blog we’ll cover the key benefits of AR automation software and explain how choosing a solution that uses machine learning and artificial intelligence can make your overall cash management easier and more accurate. We’ll also provide you with a helpful checklist to use when you’re comparing different AR software solutions.

Why You need to add automation to your ar processes

The global AR automation software market is expected to increase by over 12% in the next four years. This emerging AR tech tool is gaining in popularity for a number of reasons. The most important one is that it can easily make a positive impact on your AR processes, significantly increasing their efficiency and accuracy no matter what industry you’re in or the size of your business. 

By automating tedious and time-consuming manual tasks, the software frees your accounts receivable team to focus on higher level strategic tasks that will help your business grow. And by eliminating paper-based AR processes, you’ll realize substantial time and cost savings. According to PYMNTS, businesses spend between $16 and $22 per invoice on processing, often issuing them through the mail or fax machines. In addition, the occurrence of errors decreases drastically with automation.

The most basic solutions will allow you to create, send and track invoices, set up recurring invoices, schedule invoices and overdue payment reminders, identify high-risk accounts, accept online payments and view all communications with a customer in one place instead of having to search through endless emails. Many will also include a self-serve portal making it convenient for customers to view and pay invoices independently.

If you want to take your AR processes to the next level, you’ll want to look for a solution that’s powered by machine learning and artificial intelligence. AI-driven solutions make it possible for you to accurately forecast expected payments and drive collections closer to terms. 

Benefits of AR automation software

  • Accelerated collections: Getting paid faster by your customers narrows the cash flow gap
  • Time and cost savings: Automatically generated digital invoices are much quicker and cost far less to process
  • Reduced DSO: Fast and efficient invoicing means lower days sales outstanding
  • Increased accuracy: Automation reduces costly errors and omissions from human inputting
  • Boosted productivity: Without having to complete repetitive manual tasks, AR teams are freed to focus on more important tasks
  • Enhanced customer relationships: Accurate invoicing and consistent communications build customer trust
  • Improved cash management: AI provides real-time visibility into your cash position for better forecasting and control
  • Reduced need for reserves and write-offs: Solutions that leverage the power of AI can identify those high risk accounts that pose a risk to robust cash flow

It's no wonder there is a mind boggling number of solutions available for businesses to choose from these days. But don’t let that fact keep you from taking action. To help get you started, here’s a list of questions to use while you’re considering different options. The answers will point you to the AR automation software that’s right for your business.

Which AR automation software is the best fit for me?

  1. Is the user interface intuitive? The best software will be easy to learn and use for every member of your team.

  2. Can the AR workflows be customized? Ideally, the solution should offer the flexibility to fit your processes instead of you having to alter your way of doing things to fit into the solution’s “box.”

  3. Does it allow you to set up recurring invoices and automate invoice scheduling? Having these tedious manual tasks automated saves your AR team valuable time and ensures the timely distribution of every invoice.

  4. Can you customize invoice templates? Because customers often have their own terms, requirements and preferences, the ability to customize invoices for each of your customers results in faster approvals and speedier payments.

  5. Is the solution able to accept multiple payment methods? Unless every single one of your customers’ payment preferences is the same, this feature is necessary. Not only does it enhance the payment experience for your customers, it ensures you’ll be paid faster.

  6. Are overdue payment reminders automatically issued? No one likes chasing down payments. Having this task automated ensures that no overdue payment is overlooked and helps preserve customer relationships.

  7. Does the solution integrate with your accounting and other business systems? This is an absolute must-have feature–unless you’re planning on changing your current systems.
  8. Does the software include features that you don’t need? Although you should choose a solution that’s scalable that doesn’t mean you have to spring for software that includes extra frills you know you’ll never need. For you, the extras are just an added and unnecessary cost.

  9. Is there a self-serve customer portal? Not only does this feature give your customers more visibility, convenience and control by allowing them to view and pay their invoices directly through the portal, it can improve your DSO and DBT.

  10. Does it automatically reconcile accounts? AR automation software is all about saving time. If the solution is going to accept payments, it needs to finish the process and give you real-time account balances.

  11. Is the solution cloud-based? The majority of the solutions you’ll be looking at will be cloud-based, but there are also web-based ones available. Most businesses will prefer the flexibility that a cloud-based solution offers.

  12. Can the software help you with cash forecasting? This is where machine learning/artificial intelligence makes all the difference. An AI-powered solution should be able to predict payments and identify high-risk accounts. Both of these tools improve your overall cash management and forecasting.

Why Payference is the Preference in AR Automation Software

So, is there one solution that ticks all the boxes? 

There is. It’s called Payference and it’s quickly becoming the preferred solution of finance teams that want the same automation software benefits that enterprise level companies enjoy every day–without paying for all the extra features they have no use for. 

With Payference, organizations can leverage the power of AI for improved working capital management including cash forecasting, account receivables and account payables. They can view all cash positions in real-time from one source and make highly accurate cash forecasts.

The Payference platform is easy-to-use, customizable and integrates with your accounting/ERP systems, banks and payment channels.

And here’s one more question to add to the above checklist of questions.

How’s the customer support? Any AR automation solution you’re considering should be able to provide proof of their product support. Payference customers agree that our customer support team is outstanding.

If you’d like to learn more about AR automation software in general or more about how Payference can help you gain more control of your cash management, give us a call or schedule a demo right now.