Best Accounts Receivable Software in 2025

Before we begin, let us peek into some statistics: The way how our business environment looks right now, almost 40% of invoices are paid with delay, almost 20% of customers avoid adhering to credit terms, and nearly 50% of them are delayed in their payments. To avoid making the landscape more terrifying, we’re going to skip mentioning the percentage of managers sitting behind their desks and wondering whether to ask for another payment extension. This being said, we operate in an online business environment where we can no longer rely on manual work to obtain tangible results. That’s, of course, is unless we try to automate processes and use the best Accounts Receivable software platforms we can find.

What do companies that use accounts receivable software programs have in common? Explained in simplest terms, automating receivable management equals the hiring of an ideal accountant that would always listen to your suggestions (but will make great decisions even on his own), pay attention to every detail, and most importantly–one that would work 24/7! Sounds attractive, doesn’t it? What matters, however, choosing the best Accounts Receivable tools for enterprises, and that’s what this guide will help you to do.

First of all, a good course of action is to sign up for at least a few free trial plans or demo from popular accounts receivable software providers. With that method, you will have the opportunity to test the important elements and you will get a good comparison of the capabilities of each app. The best thing to do is to try services that currently have the highest rankings in our SmartScore and Customer Satisfaction Rating in our accounts receivable software reviews: FreshBooks reviews, Intacct, Xero, Zoho Books, Zoho Invoice, AccountEdge, and KashFlow. 

A/R measurement is critical to every success-orientated business, but there are still a few specific cases in which a company must consider getting one. Those cases were the rationale for the creation and development of these programs, which in their today’s form, aim to intervene in the following scenarios:

• Small Businesses whose team is disconnected. It is vital for every business to allow access to receivable communications to all members of the team, to store them in a central repository to save time and keep people on the same page. That way, the company will also eliminate the risk of losing valuable data (customer correspondence in particular).
• Medium Businesses that are struggling to report and use data for their scaling plans. Good management of accounts receivable actually refers to being able to reach customers without outsourcing and additional staff, but that obviously requires data to be summarized in a comprehensive manner. Accounts receivable tools are usually packed with reporting and analytic features that allow you to develop unique payment options, and to keep employees connected with each other and customers.
• Large Businesses that lack accurate data. It is easy to deviate from the truth when working in a team of 5000+ members and have twice as much regular customers. Unfortunately, for many companies, accounts receivable are still sticky notes, legal pads, and spreadsheets passed between employees with no central platform to compare invoices. A good accounts receivable program would not only unite data but gather it directly from customers.

• FreshBooks: One of the best cloud solutions for small business that streamlines tracking and invoicing. It allows you to collect payment online and is packed with advanced analytic features.
• Intacct: Another highly-efficient cloud solution for small and medium businesses that provides statistics and key figures to help companies make smarter decisions.
• QuickBooks: A simple and very popular software for small businesses that are just beginning to manage accounts receivable. It checks invoices and purchase orders and eases business transactions.
• Xero: An online accounting app for businesses of all scales and industries that is also ideal for individual accountants and bookkeepers. It focuses on collaboration and keeps teams connected wherever they are.
• FinancialForce Accounting: An easy-to-use and maintain platform that provides an affordable end-to-end accounting solution for businesses of all scales.
• Zoho Invoice: An accounting solution ideal for any company that creates and manages invoices. It’s specifically designed for sole proprietors and smaller businesses.

There are many different types of accounts receivable software tools, varying from free and basic tool suites to ultra costly and accurate programs. The list of features can also be categorization criteria, as certain programs do nothing but online accounting, while others are more robust and allow accountants to manage third-party payrolls, track the entire sales cycle, and even do some custom branding. Deployment is also an important factor based on which there are:

• On-premise accounts receivable programs. These are covered with a single license and are hosted on the client’s local server. They qualify as the most expensive ones, due to the fact that they require complex setup and occasionally some hardware installation.
• Software-as-a-service (SaaS) accounts receivable programs. These are usually paid per month and hosted on the vendor’s server. The business owner is not responsible for installation, updating, and maintenance.
• Cloud-hosted accounts receivable programs. Most of these offer free basic plans and qualify as the most affordable ones due to their universal access and the fact that the client doesn’t need to update them or pay for maintenance.

When buying your first accounts receivable system or upgrading to a more powerful one, you should look for the following features:

• Accounts Receivable Ledger. The accounts receivable ledger is a list of customers and their due payments that ought to be updated every month. Therefore, it is an essential reporting asset that identifies and stores information, and a good AR system cannot function properly without it.
• Accounts Receivable Aged Listing. This function will organize accounts receivable based on payers and dates, the ranges and columns being completely customizable to respond to the specific needs of your business. Obviously, this is another vital source of information you can use to perform reporting.
• Customer Statements. Customer statements won’t be much different than the ones you’re printing now, but the mismatch will be the fact that you don’t have to enter information manually and to double-check whether you’ve updated it. Customer statements are important to you because they fill the gap of reporting to customers their hanging and outstanding obligations.
• Individual Collection Letters. The function ensures prompt and timely collection of receivables, most of the time using criteria prescribed by you. As time goes by, collection letters will become stricter, and your biggest benefit here is that wording will be automated in every single case.
• Centralized Database. Your AR system is supposed to store and secure data in a centralized database. Ideally, you should be able to track information months and years back, using detailed categorization and advanced search filters.
• Mobile App. In today’s highly mobile workplace, not to mention the rising shift to remote work, collection agents and accountants are increasingly turning to their mobile AR applications to continue their jobs from anywhere, 24/7.
• Automation. Be it automated email or the many tasks that technology can automate, AR systems help businesses streamline most or their entire billing and collection cycle.
• Invoice Dispute Management. Top AR solutions now allow the automatic escalation of invoice disputes to the assigned company officer or staff. This hastens the typically long turnaround time to revolve disputes and enables businesses to quickly convert receivables into cash.

Accounts Receivable software is proof that automating processes can have amazing results, or at least that’s what satisfied users say. According to them, AR systems are more than likely to improve your market position and reduce the stress of not being able to meet your financial obligations. Thereof, after in-depth comparisons of popular solutions, we created a list of critical AR software benefits every company should consider:

• A better cash-out position. AR systems make you focus on accounts receivable, and develop better prioritization practices to identify and close invoices earlier in the process. As a result, you will have more disposable means on the table or at least a precise scenario of how your cash position looks like. This is critical for every company to be able to cover its financial obligations, so think about it!
• Improved capital control. This comes somehow logically: if money is enough to cover everything, it means you’re handling it just fine. Thanks to developed AR systems, you understand your cash position, and you orient capital towards better business decisions (prompt purchases, quality hiring, improved invoice collection, business-growth investments, and so on).
• Better communication with customers. AR software usually encompasses a variety of communication facilitating tools, such as instant access to information, customized emails with attached invoices, merged documents, and logged phone calls. With the very best scenario, you will be also able to store this information and use it for reports. Needless to say, the way you communicate with customers is the core of your credibility, so the more professional it gets, the more awards you’ll reap from it.
• Reduced administrative costs. The critical improvement of your billing process is that you’ll start handling invoices digitally and that will automate administrative procedures too. Automated processes don’t only refer to your customers, but also your employees and partners who’ll get rid of printing, stamping, and sending documents manually.
• Shorter payment cycles. The way sales cycles usually look nowadays, they require plenty of time and expenses to be closed. The role of your AR system in the case will be to allocate the resources needed to cover that order in a more appropriate and economical way. If nothing else, you will approve projects much quicker than before, which is already a chance to be paid sooner. Meanwhile, invoices will be sent to customers automatically, and there will be a specific customer portal with information to give them more options for accelerated or off-the-shelf payment.
• Efficient AR management. If you think about it, getting paid late is the least annoying part of the payment process: what can be really frustrating is keeping track of who is supposed to pay what, reminding debtors, and resolving issues related to the payment itself. That’s the biggest advantage of AR software–it allows you to stay in control. You won’t need to prepare to remind customers of their invoices, reduce the time necessary to prioritize tasks, deal with significantly fewer disputes related to the “I wasn’t told” problem, and you will spend more time soliciting payment than your current work line can allow.
• Minimal credit risk. The credit that needs to be extended to customers is the eternal retail dilemma. Managers are continuously stuck in complex risk calculations, time predictions, and unpleasant communications. AR systems can be of great help for this purpose, as they allow you to gather relevant information from third parties, and to control exiting relationships for sudden risks. More precisely, you will be able to generate credit reports where customers are categorized using risk estimations, to deliver credit applications, to with your own scoring formulas, and notify customers on time.
• Fewer Invoice Disputes. Accounts receivable platforms are designed to minimize, if not totally eliminate invoice-related disputes. In case disputes do emerge, AR systems empower collectors to quickly settle them.
• Improved customer satisfaction and relationships. Most customers prefer to pay their bills on time, mainly because late payments mean added costs to them. Businesses must provide a highly-reliable and accessible means to help customers through a good AR solution. A timely invoice delivery translates to faster payments, which ultimately results in customer satisfaction.
• Data-driven Actionable Insights. Robust accounts receivable solutions enable businesses to better generate reports and acquire more efficient analytics capabilities. Aside from improving business decisions, users can also make more precise cash forecasting.

Accounts receivable software has changed how businesses handle their collections, bills payments, and other related transactions. From automation to predictive cash processing, accounts receivable systems providers continue to come up with new and innovative features, aimed to further improve your cash flow and overall business profitability.

• Omnichannel collections. In today’s world where customers tend to have diverse and evolving habits, a business must be able to address this complex consumer behavior by being wherever their customers want to do business. This is why AR systems now have omnichannel collection capabilities to ensure that every payment mode is covered.
• Integration. AR solutions are now increasingly enabling seamless integration with popular accounting, business, and productivity tools. This helps eliminate any bottleneck in a company’s collection systems, thus ensuring the smooth flow of cash.
• Electronic payments. AR systems that allow online and/or digital payment enables businesses to quickly collect their revenues. This also empowers customers to pay their bills on their own, which adds to customer satisfaction. Bills payment can also be automated based on your clients’ preferences.
• Automation. Paper-based accounting is time-consuming and provides room for numerous errors. But with technology-based automation, your accounts receivable transactions are faster, with lesser error, and provide you with considerable cost savings.
• Cash application. AR software with a cash application allows you to post back to your accounting or ERP system, which helps ensure precise data and streamlined workflow. This also removes the need to reenter customer data from one system to another, thus eliminating errors.
• Predictive cash forecasting. Every business needs to have a solid grasp of how much cash you can be expecting. With an AI-powered AR platform, you can deploy some sophisticated algorithms to make reliable predictive cash forecasting based on your transaction histories.
• Compliance. Today’s leading AR systems don’t only offer top-of-the-line features but also provide tools that help businesses to more efficiently comply with tax and other government laws and requirements.

Like most business technology tools, accounts receivable software is susceptible to potential problems, which could emanate from the platform, how they’re used or from external factors. Here are some of the most common likely issues of AR solutions:

• Security. The unauthorized internal and external use and access of AR systems and related customer data will persist. Choosing AR solutions with bank-grade security protocols is the best approach to resolve this problem.
• Data Entry Errors. Despite the advancements in AR technology, the likelihood of human error whenever they enter data remains a potential issue. Observing best practices such as editing entered data as well as deploying Optical Character Recognition or Intelligent Character Recognition tools will help in addressing this issue.
• Unstable or Slow AR Processing. Every invoice undergoes four stages before it gets paid, namely invoice receipt, confirmation, recording, and approval. Not all AR systems are designed to handle numerous invoices and big data. This is why it’s best to choose an AR solution with centralized storage and processing systems that efficiently manage and digitally verify all invoice processing stages.