Best accounts receivable software: Features, benefits and selection criteria

Finance leaders face mounting pressure to optimize cash flow, reduce operational costs, and enhance customer satisfaction—all while managing increasingly complex accounts receivable processes. With extended payment terms becoming standard and digital transformation accelerating across industries, finding the best accounts receivable process automation software has become a priority for organizations seeking competitive AR financial advantages.

What is accounts receivable software?

Accounts receivable software is a specialized financial technology solution that automates and streamlines the management of incoming payments, customer invoicing, and collections processes. Modern AR software has evolved from the basic digital ledgers of the past into platforms that manage the entire order-to-cash cycle.

Today's best accounts receivable automation software solutions leverage artificial intelligence, machine learning, and cloud technology to transform traditionally manual, error-prone processes into streamlined operations. These platforms serve as the operational backbone for finance departments, connecting with broader enterprise systems to create a financial technology ecosystem that drives business performance.

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Key features of best-in-class accounts receivable software

The highest performing AR automation platforms offer functionality that addresses every aspect of the accounts receivable process:

• Invoice automation and delivery capabilities that distribute invoices through customers' preferred channels, whether digital or traditional, ensuring faster receipt and processing.
• Payment processing and acceptance functionalities that support multiple payment methods, including ACH, credit cards, and virtual cards, while automatically capturing remittance information.
• Cash application and reconciliation features that use AI to automatically match incoming payments with outstanding invoices, dramatically reducing manual work.
• Collections management software that prioritize accounts based on sophisticated algorithms, focusing team efforts where they'll have the greatest impact.
• Credit risk management capabilities that automate credit applications and decisions while continuously monitoring customer creditworthiness.
• Analytics and reporting functionalities that provide real-time visibility into AR performance and identify opportunities for process improvement.
• AI and machine learning integrations that continuously improve process automation and provide predictive insights.

Medical equipment manufacturer Ambu demonstrates the power of these features in action. Facing over 80 virtual card processing requests daily with limited staff, they implemented Billtrust's Business Payments Network, achieving 96% Level 2/3 processing with nearly $600,000 in savings while increasing automated match rates from 45% to over 90%.

Implementing the right AR automation tools delivers substantial and measurable benefits across financial operations:

• Accelerated cash flow and reduced days sales outstanding (DSO) through faster invoice delivery, automated follow-ups, and simplified, digital payment processes that discourage late payments.
• Increased operational productivity by eliminating manual data entry, paper handling, and repetitive tasks, allowing finance teams to focus on strategic activities.
• Cost reduction through process automation that minimizes errors, reduces printing and mailing expenses, and optimizes staff resources.
• Improved accuracy and compliance with automated workflows that maintain consistent processes and detailed audit trails while reducing human error.
• Better visibility and forecasting through real-time dashboards and reporting tools that provide immediate insight into AR performance metrics.
• Streamlined risk management by automating credit approvals and collection procedures, while gaining valuable predictive insights to enhance decision-making.
• Customer happiness by offering buyers personalized and frictionless experiences.

How to choose the right AR software for your business

Selecting the best accounts receivable software requires a methodical approach that begins with understanding your organization's specific needs:

• Start by understanding your specific business needs and challenges, including industry-specific requirements and unique operational workflows.
• Assess your current AR processes, identifying bottlenecks, inefficiencies, and areas with the greatest potential for improvement.
• Set clear objectives for implementation, defining key performance indicators to measure success and establishing realistic timelines for achieving them.

Security solutions provider Alertis demonstrates the importance of tailored selection. Facing manual collection processes that couldn't scale with their growing business, they implemented a customized collections solution that improved current receivables by 10% and achieved 96% current aging—all while their revenue doubled. The company transformed what was once "an endless mountain that had to be conquered twice a month" into "a continuous process with a few easily digestible chunks every day."

Essential selection criteria for AR software

When evaluating accounts receivable software options, consider these critical factors:

• Scalability and flexibility to grow with your business, accommodating increasing transaction volumes and expanding into new markets without performance degradation.
• User experience and interface design that promotes adoption across your organization with intuitive navigation and role-based customization.
• Security and compliance features that protect sensitive financial data and ensure adherence to industry regulations and standards.
• Customer support and implementation assistance that provides expert guidance throughout your digital transformation journey.

The most successful accounts receivable software solutions offer integration capabilities:

• ERP system integration requirements should be carefully evaluated, ensuring data flow between financial systems without manual intervention.
• Banking and payment processor connections enable straight-through processing of incoming payments, accelerating cash application.
• Third-party financial application connectivity expands functionality through complementary solutions for specialized needs.
• API availability and documentation facilitate custom integrations and future system expansions as your requirements evolve.

Successful AR software implementation delivers measurable return on investment:

• Typical ROI metrics include reduced DSO, decreased processing costs, improved staff productivity, and enhanced customer satisfaction scores.
• Time-to-value considerations should balance quick wins with long-term strategic benefits, establishing realistic expectations for implementation phases.
• Long-term benefits beyond immediate efficiencies include improved customer relationships, better working capital management, and more strategic resource allocation.
• Hidden costs to consider encompass implementation services, ongoing maintenance, training requirements, and potential integration complexities.

93% of finance leaders confirm their AR automation software delivered the ROI they expected.

What makes a leader in accounts receivable software

The best accounts receivable software providers distinguish themselves through:

• End-to-end solution capabilities that address the entire order-to-cash cycle, eliminating the need for multiple point solutions.
• Industry expertise and specialized knowledge that translates into best practices tailored to your specific business requirements.
• Proven track record with diverse customer base, demonstrated through documented success stories across various industries and company sizes.
• Adaptation to market changes, including emerging technologies and evolving payment methodologies.
• Customer success stories across industries that validate the solution's effectiveness in real-world applications.

The best accounts receivable software transforms finance operations by automating manual processes, accelerating cash flow, and enhancing customer experiences. For finance leaders evaluating options, focusing on functionality, integration capabilities, and proven results provides the foundation for a successful implementation.

Ready to explore how the right accounts receivable software can transform your financial operations? Connect with our team of experts today to discover how Billtrust's unified AR platform can help your organization control costs, accelerate cash flow, and improve customer satisfaction.

Read the blog → Ultimate guide: Buying accounts receivable software in 2025

For over two decades, Billtrust has led the transformation of accounts receivable processes, helping businesses control costs, accelerate cash flow, and improve customer satisfaction. Our unified AR platform leverages artificial intelligence and machine learning to streamline the entire order-to-cash cycle—from credit management and invoicing to payments and collections. Processing over $1 trillion in invoice dollars annually for 2,400+ customers worldwide across more than 40 industries, Billtrust combines cutting-edge technology with deep financial expertise to deliver solutions that drive measurable business outcomes and create lasting competitive advantage.