Best Accounts Receivable Automation Software Shortlist
Here is my list of the best AR automation software:
- Oracle NetSuite - Best for enterprise AR automation
- QuickBooks - Best for small businesses
- Sage Intacct - Best for built-in compliance support
- BlackLine - Best for credit and risk management
- SoftLedger - Best for custom billing
- LockStep Receivables - Best for automating customer communications
- Bill - Best for AR & AP automation
- Growfin - Best for collaboration
- Zoho Books - Best for simple integrations
- Billtrust - Best for automating credit decisions
- Freshbooks - Best for small teams
- Xero - Best for simple invoicing
In this article, I’ll summarize each AR automation software option’s features, user experience, value, and some notable pros and cons to help you decide on the best accounts receivable automation software for your needs.
What Is Accounts Receivable Automation Software?
Accounts receivable automation software helps firms manage the AR process and improve efficiencies in invoicing and payment collection processes. The primary purpose of AR automation software is to help ensure companies get paid for all the goods and services they sell—while reducing the amount of time employees have to spend invoicing and tracking down payments.
AR automation software is primarily used by finance and accounting teams. It also has applications for managers who wish to oversee the accounts receivable process or to monitor the performance of accounting teams.
Some AR automation software solutions are standalone services that focus solely on accounts receivable. Others are broader accounting software solutions that include AR automation features.
Overview of the Best Accounts Receivable Automation Software for 2023
Based on a combination of features like user-friendliness, functionality, and value, these are the best accounts receivable automation solutions on the market today.
1. Oracle NetSuite - Best for enterprise AR automation
NetSuite is an integrated software solution that covers accounting, ERP, inventory management, HR, and more. The Accounts Receivable functionality is built into NetSuite’s ERP system, which is commonly used by mid-sized and large firms.
NetSuite accounts receivable handles all the basic AR functionality that you would expect from any accounting software, but it’s augmented by NetSuite’s automation, analytics, and resource planning features. Automation features include automatic posting of order transactions (to both AR and General ledgers), as well as automatic tax calculation and collection.
Why I picked NetSuite
I selected NetSuite because it offers a full-featured ERP system for firms, alongside built-in accounting and AR automation features.
NetSuite Standout Features and Integrations:
Standout features of NetSuite include advanced reporting with configurable dashboards and KPIs to help teams oversee AR workflows and identify trends. NetSuite is also a complete end-to-end accounting solution and ERP system designed to help firms run every aspect of business operations.
Integrations include the entire NetSuite product line, HubSpot, Shopify, Salesforce, Adobe Commerce, and more.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- A full-featured ERP system and end-to-end accounting solution
- Intelligent insights and analytics
- Customizable KPIs and dashboards
- Fully customizable business solutions
Cons
- Steep learning curve
- Limited learning materials
2. QuickBooks - Best for small businesses
QuickBooks is the most popular small business accounting software in the US—and it’s not even a close competition. In the small businesses accounting category, QuickBooks is estimated to have a market share of over 80%. While “popular” does not necessarily mean “good,” QuickBooks is a solid platform for accounting—particularly for smaller firms looking for cost-effective and user-friendly software.
To be clear, QuickBooks is not an ERP system, unlike many options on this list. It’s a dedicated accounting and bookkeeping software. Fortunately, it does integrate well with many business tools, including ERP solutions.
Why I picked QuickBooks
I selected QuickBooks because it’s easy to use and cost-effective for small firms and because it’s a preferred software in the accounting industry (making it easier to work with third-party CPAs and accounting firms).
QuickBooks Standout Features and Integrations:
Standout features of QuickBooks include integrated payment processing with “pay now” buttons directly on invoices, plus automated calculation and tracking of sales tax, customizable AR aging reports, and more.
Integrations include over 750 popular business apps, including POS systems, digital marketplaces, HR tools, and more.
Pricing: Starts at $30 per month
Free Trial: Free 30-day trial
Pros
- Easy to use
- Ample third-party integrations
- Small-business friendly (in pricing & UI)
Cons
- Somewhat limited in automation features, compared to AR-specific software
- Accounting only (no ERP, BI, etc. functionality)
3. Sage Intacct - Best for built-in compliance support
Sage Intacct is a financial management and accounting platform that’s built into the Sage software suite. It’s designed for firms that have outgrown tools like QuickBooks and require a more advanced accounting platform.
Sage is also built to scale. Innovative features like multiple entity consolidation allow rapidly evolving firms to continue adapting and responding to market changes, while automated accounting processes can cut close time by up to 79% (according to Sage’s own internal survey data).
Why I picked Sage Intacct
I selected Sage Intacct because it’s a full-featured accounting platform with great automation features and because it has built-in accounting standards and compliance support, including protocols for GAAP, ASC 606, and IFRS 15.
Sage Intacct Standout Features and Integrations:
Standout features of Sage Intacct include in-built accounting standards and compliance features, which may make it easier for firms to raise capital on global markets. Sage Intacct is also known for excellent analytics and reporting dashboards, with over 200 prebuilt data visualizations.
Integrations include other Sage software solutions, plus Blackline, Planful, Vena, Gusto, Cube, and more.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- Exceptional data visualization and reporting
- Ample integrations with existing tools
- Built to scale
Cons
- Moderate to high learning curve
4. BlackLine - Best for credit and risk management
BlackLine is a unified cloud accounting platform for mid-sized to large firms. It’s designed to help finance and accounting teams focus on higher-value activities by streamlining (and automating) as many manual processes as possible—and by providing excellent forecasting and analytics tools.
BlackLine automates many key components of the AR process, from invoicing and payment matching to past-due collections and dispute management.
Why I picked BlackLine
I selected BlackLine primarily because of its risk management and credit risk analysis tools. BlackLine uses unified customer data to help teams gauge credit risk in real-time.
BlackLine Standout Features and Integrations:
Standout features of BlackLine include real-time risk profiling to help firms use existing data to gauge credit risk (and set credit terms). It also features automated collections management, instant payment/invoice matching, and enhanced AR intelligence tools.
Integrations include other BlackLine products along with ERP systems from NetSuite, SAP, Oracle, Microsoft Dynamics, and more.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- Excellent analytics and AR intelligence insights
- Advanced tools to assess credit risk, set credit terms, and manage disputes and deductions
- Efficient internal communication tools and customer interaction protocols
Cons
- Overkill for smaller firms
- Opaque pricing
5. SoftLedger - Best for custom billing
SoftLedger is a comprehensive cloud accounting platform that has custom solutions for a wide variety of business sizes. It’s a jack-of-all-trades accounting software that covers all the bases. It offers integrated bank and credit card feeds, automated invoicing, and custom invoice formatting.
Why I picked SoftLedger
I selected SoftLedger because it supports custom invoicing and billing metrics. For firms that bill customers based on usage or custom metrics, SoftLedger makes it easier to convert these into billable line items for more accurate invoicing.
SoftLedger Standout Features and Integrations:
Standout features of SoftLedger include custom billing metrics that are well-suited to usage-based billing and other custom metrics. SoftLedger also supports crypto accounting (and crypto payments) in the AR process.
Integrations include Stripe, Plaid, and most financial institutions through an Open Banking API.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- Scalable
- Supports cryptocurrency and blockchain asset bookkeeping
- Headless accounting API for custom development
Cons
- Limited automation features
- Opaque pricing
6. LockStep Receivables - Best for automating customer communications
Lockstep Receivables (formerly Anytime Collect) is a component of the Lockstep software suite, which focuses on helping firms get paid faster and easier. It has significant automation features and focuses specifically on the AR process, as well as collections and dispute management.
Why I picked Lockstep Receivables
I selected LockStep receivables primarily because it helps to automate customer comms through a large template library of invoices and email outlines. It also offers some self-service tools for customers, helping to further cut down on hands-on input from accounting and finance teams.
Lockstep Receivables Standout Features and Integrations:
Standout features of Lockstep include automated customer communications including an extensive prebuilt library of templates. There are also ample features to help manage the collections and dispute process.
Integrations include Sage, SAP, Infor, QuickBooks, Microsoft Dynamics 365, and more.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- Simple and intuitive UI
- Efficient communication and invoice automation features
- Easily integrates with most ERP systems and financial software tools
Cons
- Limited payment processing integrations
- Performance can be slow
7. Bill - Best for AR & AP automation
Bill (formerly branded as Bill.com) is an accounts payable and accounts receivable platform that’s fully web-based. It’s most popular as an AP tool, but it has expanded to cover AR as well—and offers ample automation features in both categories. It integrates with most financial and business software and offers bi-directional syncing with most major accounting platforms.
Why I picked Bill
I selected Bill because it offers both AP and AR in one platform, with innovative automation features in both departments.
Bill Standout Features and Integrations:
Standout features of Bill include the combination of AR and AP in one platform, which helps managers oversee a more complete financial picture of money coming in and out. It also offers the option to send paper invoices via mail directly from the Bill platform.
Integrations include QuickBooks, Xero, NetSuite, Sage Intacct, Microsoft Dynamics, and more.
Pricing: From $45/user per month
Free Trial: Demo available
Pros
- Unified platform for AR and AP
- Transparent and affordable pricing
- Simple integrations and widespread bi-directional syncing with most financial tools
Cons
- Additional fees for transactions
- Requires external accounting solution
8. Growfin - Best for collaboration
Growfin is an accounts receivable automation software that targets unicorns and growth-stage startups. AR is its central focus, but Growfin is designed to be used in tandem with other accounting and finance tools. It uses AI and machine learning to power AR automation workflows and to provide real-time insights to accounting and finance teams. It also has ample collaborative features for dispute management and past-due collections.
Why I picked Growfin
I selected Growfin primarily because of its collaborative features. The software has task management, internal communications, and customer communications built into one platform for simplicity.
Growfin Standout Features and Integrations:
Standout features of Growfin include collaborative features to help accounting and finance teams work hand-in-hand with customer-facing teams during the collections and dispute management process. It also has real-time AR tracking to help teams visualize accounts blocking cash inflows.
Integrations include NetSuite, Salesforce, and more, plus custom ERP integrations handled by Growfin’s team.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- Enables interdepartmental communication and collaboration
- Intuitive UI and engaging data visualization
- AI and machine learning-driven insights
Cons
- Solely AR-focused
- Limited out-of-the-box integrations
9. Zoho Books - Best for simple integrations
Zoho Books is a cloud-based accounting platform that handles invoicing, AP, bookkeeping, inventory management, and more. It’s designed to be an all-in-one platform and competes with the likes of QuickBooks and Sage Intacct. With that said, its jack-of-all-trades approach means that it lacks some of the advanced AR automation features offered by some of the other tools on this list.
Why I picked Zoho Books
I picked Zoho Books primarily because of its user-friendliness, both in the software’s UI and in its ease of use for integrating with third-party apps and tools.
Zoho Books Standout Features and Integrations:
Standout features include customizable reminders and customer communications, inventory management tools, simplified vendor and customer portals, and more.
Integrations include payment gateways (PayPal, Stripe, etc.), internal Zoho apps, document software, and over 500 other apps via Zapier.
Pricing: From $0 per month
Free Trial: 30-day trial available
Pros
- Easy to use and integrate with other apps
- All-in-one cloud accounting platform
- Transparent and affordable pricing
Cons
- Lacks native integrations with ERP systems
- Not suited for large firms
10. Billtrust - Best for automating credit decisions
Billtrust is an accounts receivable automation software that’s designed to help firms future-proof B2B transactions and billing systems. It offers unique solutions for businesses large and small and includes integrated payments and credit application features.
Why I picked Billtrust
I selected Billtrust primarily because it has excellent tools to help integrate credit applications and customizable billing structures directly into invoices. The software allows users to set rules and guidelines to guide credit decisions and approve or deny client applications automatically.
Billtrust Standout Features and Integrations:
Standout features of Billtrust include integrated payments, integrated credit applications and auto-decisioning, and a suite of optional add-on services to expand functionality and support AR teams.
Integrations include QuickBooks, Sage, SAP, Oracle, Epicor, Microsoft Dynamics, and more.
Pricing: Custom pricing available upon request
Free Trial: Demo available
Pros
- 100% focused on AR automation
- Integrated credit applications and decisioning
- Optional managed services expand functionality
Cons
- Steep learning curve
11. Freshbooks - Best for small teams
Freshbooks is an invoicing and accounting software designed for small businesses, solopreneurs, and freelancers. Its features are relatively simple, and that’s the point: It’s easy to use, even for users with no accounting experience. And it supports custom invoicing, estimates, built-in time tracking, and other features that contractors will find useful.
Why I picked Freshbooks
I selected Freshbooks primarily because it’s cheap and easy to use. While it lacks some of the bells and whistles that some major competitors offer, Freshbooks is a genuinely simple platform that’s perfect for sole proprietors and freelancers.
Freshbooks Standout Features and Integrations:
Standout features include all-in-one functionality for invoicing and basic accounting, as well as built-in time tracking, professional invoicing, and integrated payments.
Integrations include Gusto, Outlook, Indeed, Gmail, HubSpot, and more.
Pricing: From $17 per month
Free Trial: 30-day trial available
Pros
- Simple UI (even for non-accountants)
- All-in-one invoicing and accounting functionality
- Low-cost plans with transparent pricing
Cons
- Limited functionality for large firms
- Lacks financial insights and advanced data analytics
12. Xero - Best for simple invoicing
Xero is a cloud-based accounting platform that combines AR, AP, bookkeeping, and more. It targets the small business and contractor crowd, offering a relatively simple solution to meet the needs of smaller businesses.
Why I picked Xero
I selected Xero because it’s super simple to use for invoicing, automated invoicing, and integrated payments. Xero’s mobile app is also useful, particularly for its receipt capture feature.
Xero Standout Features and Integrations:
Standout features of Xero include simple integration with payment processors, automated invoicing, and basic accounting functionality.
Integrations include Gusto, Stripe, HubSpot, Shopify, MailChimp, and more.
Pricing: From $13 per month
Free Trial: 30-day trial available
Pros
- Budget-friendly
- Mobile app
- Integrated payments
Cons
- ACH payment fees
- Limited reporting features
Other AR Automation Software Options
Didn’t find what you were looking for? Here are some other good options for automating accounts receivable processes.
- Invoice2Go - Best for freelancers
- Redwood Finance Automation - Best flexible solution with custom batch scripting
- SAP S/4HANA Cloud - Best cloud ERP with AR automation features
- Quadient AR by YayPay - Best for AR intelligence insights
- Square Invoices - Best for service providers
- HighRadius - Best for AI-driven automation
Selection Criteria for Accounts Receivable Automation Software
I used the following selection criteria to develop my list of the best accounts receivable automation software for this article:
Core functionality
At its core, AR automation software should enable your firm to:
- Create, send, and monitor invoices
- Manage customer account credits and payments
- Process transactions automatically
- Match invoices to credits and customer payments
- Deliver analytics and reports on the current status of receivables
- Build custom workflows to define rules, exceptions, and best practices for AR processing
- Integrate with existing accounting systems and ERP systems
AR automation software should also enable these processes with minimal input required from accounting and finance teams. As the name suggests, AR automation software is specifically designed to improve efficiency by increasing the percentage of AR workflow that can be automated.
Key features
Here are some specific unique features that I looked for in AR automation software:
- Automated invoicing: Solutions should automate key processes in your firm’s invoicing system, ideally by integrating with existing systems, like CRMs and POS systems. All accounting software solutions will provide basic invoicing functionality, but I focused on software with substantial automation features.
- Paperless billing and payment reminders: Modern AR automation should be primarily digital. I focused on tools with integrated paperless billing, invoicing, reminders, and receipt distribution.
- Payment processing: AR automation software should also be able to handle payments from customers, either directly or through third-party integrations.
- AR intelligence & reporting: AR automation software should ideally also provide detailed reporting and AR intelligence data to help managers oversee the process, track long-term trends, and access real-time snapshots of receivables.
- Disputes, deductions, & collections management: Dispute resolution, collections, and deductions are an inevitable part of managing receivables. A good AR automation software will help to automate certain elements of this process, helping to reduce hands-on time requirements and ideally helping maintain better relationships with customers.
Usability
The usability of internal tools is vital. A solution won’t actually save your team time if they can’t figure out how to use it effectively. Some legacy AR systems are notoriously difficult to use for new users, so I focused on tools with intuitive UIs and good ratings for usability. Fortunately, AR automation tools generally require less ongoing maintenance once workflows have been established and the solution is fully integrated and deployed with existing systems.
Integrations
Integrations are vital for efficient automation. AR automation tools should, at a bare minimum, integrate with your firm’s existing accounting solution. Ideally, tools should also integrate with solutions for CRM, ERP, and CPM. For retail and e-commerce firms, integrations with POS systems are also important.
Overall Value
AR automation software is designed to save teams time, which in turn saves money. But for smaller firms or companies with fewer receivables, it’s important to consider how much these tools could potentially improve AR workflows compared to the cost of the software.
People Also Ask
Below you can find answers to some common questions people have about AR automation software.
What aspects of AR management can be automated?
Is dedicated accounts receivable software necessary?
Summary
Automating key accounts receivable tasks can free up significant resources within your organization.
Even if you’re already utilizing general accounting software like QuickBooks, adding a dedicated AR automation solution is worth looking into.
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