Accounts receivable tracking software
Cash flow and management are critical considerations for companies, especially during lean times. When every pound counts, your ability to get paid on time, manage late or missing payments, and identify churn risks has an enormous impact.
That’s accounts receivable in a nutshell: getting paid on time, in full, and (hopefully) on an ongoing basis.
This used to be complex, with large collections teams – or stressed salespeople – endlessly chasing payments. Today, much of the work can be easily automated. Which means more money coming in when you need it, with far less effort.
This article introduces six of the best tools for this task, as recommended by CFOs and finance leaders in our survey.
But first, we’d better start with a couple of definitions.
What are accounts receivable?
Accounts receivable (AR) is the collective term for money owed to you by customers (or other debtors). It’s also commonly referred to as billing. And it’s obviously crucial to company success – if you can’t effectively receive payment for your goods or services, your business won’t last very long.
AR goes on the balance sheet as an asset. Even if the money isn’t in your bank accounts yet, it will be soon enough.
What is a billing or AR tool?
AR software helps to manage the billing cycle by automating the payment process, or by shortening the length of time you need to wait for payment. When cash flows in seamlessly without delay, you can deploy working capital where you need it most.
Just as vitally, you won’t have finance and sales team members chasing unpaid invoices.
The recommendations in this list include classic billing tools that let customers pay instantly and tools that help you manage outstanding payments and receive what’s owed.
Keep cash flowing in, and focus on building
Effective accounts receivable isn’t necessarily as exciting or glamorous as a new product line or opening your next entity. Getting paid is table stakes for running a business.
But that doesn’t make it easy, nor does it mean there isn’t room to optimise. The tools above take care of the most important part first: ensuring customers can pay. They also help to chase late payments and follow up on failed transactions.
Other tools that received votes in our survey include Zuora, Hyperline, Billwerk, TrueRev, and FastBill.
If a smarter, more efficient accounts receivable process sounds good to you, try one of the solutions above. And when you’re ready to streamline your procurement process, check out Spendesk’s procurement solution to keep your entire financial workflow running smoothly.