Introduction
No company wants to deal with overdue invoices, but it’s often an inevitable part of doing business.
Preventing overdue payments and skillfully handling clients who pay late is an accounts receivable task.
Although large corporations may hire an accounts receivable specialist, smaller businesses may not be able to justify the investment. Instead, they look to software to handle accounts receivable processes for a fraction of the cost.
In this post, we’ll cover the five best collaborative accounts receivable software to help small businesses reduce the number of days it takes to get paid.
Here’s What We’ll Cover:
1) Peso
Peso account receivable software introduces a range of features and benefits that redefine financial management. With its , Peso breaks down silos and transforms financial workflows. The platform streamlines processes, fostering cohesion and communication within teams.
By adhering to best practices and a culture of continuous improvement, Peso enhances operational workflows and ensures sustained financial success for businesses. The responsive support structure swiftly addresses challenges, promoting a positive user experience and overall satisfaction with collaborative accounts receivable tools.
In essence, Peso revolutionizes financial management, turning it into a collective and efficient effort, providing indispensable assets for maximizing efficiency and ensuring robust, collaborative approaches to accounts receivable.
Key features of Peso includes
- Connect ERP, CRM, and email data for an easier access of your customers
- Cloud-based so you can access anywhere with iOS or Android
- Detailed Dashboard for better Analytics and Predictive algorithms powered by AI
- Single click collaboration with team with permission restriction
- Integration with multiple accounting and other lead source softwares
- Easy communication via email, phone and whatsapp
- Easy task management for team members
This is most affordable, easy to use and feature rich collaborative account receivable tool in the list.
You can schedule a call with peso founders to understand more details about product and pricing.
2) Chaser
Chaser, an accounts receivable automation software, streamlines customer follow-ups and simplifies payment reminders through personalized emails. It seamlessly integrates with accounting systems and, when necessary, escalates overdue payments to collections services. Chaser helps in maintaining a comprehensive record of customer communications, offering insights into their payment history. Users can also benefit from interactive debtor reports to gain deeper insights into customer payment behaviors, aiding in better planning.
Chaser Pricing
Chaser’s pricing starts at $40, making it one of the most affordable solutions on our list. To take advantage of escalation solutions, you’ll need a standard plan which starts at $95 a month.
3) YayPay
YayPay, a specialized collections solution for B2B companies, facilitates accelerated payments and offers comprehensive financial reporting for efficient accounts receivable management. Leveraging machine learning, YayPay provides predictions about payment behavior, aiding in planning and cash forecasts, with reported accuracy reaching 94%.
Additionally, they offer a user-friendly and dynamic accounts aging report to assist in determining follow-up priorities. YayPay supports automation of routine tasks, such as sending emails, streamlining efforts to expedite payments.
Key YayPay features include:
- Connect ERP, CRM, and email data for an easier glance of your customers
- Secure portal for customers to pay.
- Collections communications
- Real-time tracking of days sales outstanding (DSO)
- Predictive algorithms powered by AI
- In-house collections team
YayPay Pricing
YayPay doesn’t disclose pricing, so you’ll need to contact them for a quote.
4) FreshBooks
FreshBooks, a cloud-based billing and invoicing software, goes beyond its primary function, extending support to small business owners and freelancers in automating both accounts payable and receivable processes. Garnering top ratings as the number one accounts receivable software from various review sites, FreshBooks stands out.
Users can effortlessly send aesthetically pleasing invoices, monitor billable hours, and receive real-time updates on customer interactions with invoices. What sets FreshBooks apart is its automation of the entire accounts receivable process post-invoice issuance. Users can configure the platform to send automatic reminders for overdue payments at specified intervals, adding a personalized touch with customizable messages.
With FreshBooks, efficiency meets personalization, making it a comprehensive solution for streamlined financial management for businesses and freelancers alike.
FreshBooks offers a wide range of features, including:
- Secure, self-serve portal for clients
- Cloud-based so you can access anywhere with iOS or Android
- Automatically bill late fees
- Comprehensive financial reporting
- Ability to get paid in a variety of ways
- Integrations with a variety of other accounts receivable software for added capabilities
FreshBooks Pricing
FreshBooks pricing starts at $19 a month for the lite plan, which gives you access to unlimited invoices for up to 5 clients. If you have up to 50 clients, the Plus plan is $33 a month. Additionally, the premium plan at $60 a month allows you to invoice an unlimited number of clients.
FreshBooks also offers a risk-free 30-day free trial.
5) Fundbox
Fundbox is a special software that helps with money, but it works differently from others. It’s for getting money from your accounts receivable, up to $150,000. Fundbox uses smart technology to quickly decide if you can get the money, usually within one day. You connect it to your accounting software or bank account. But, be aware that it’s not the same as other ways of getting money, like factoring. With Fundbox, you still handle collecting money, and you get the full value of your invoices. However, there are some conditions. Your business needs to make more than $100,000 a year, and you must have been in business for at least 6 months when you apply.
Fundbox Fees
Fees are roughly 8.33% for 24-week terms and 18% for 52-week terms. However, this varies from customer to customer. To learn more, go to their pricing page.
What is Collaborative Accounts Receivable Software?
Accounts receivable software offers an affordable solution for growing businesses to streamline and automate the accounts receivable workflow. Software can take care of tedious, manual processes such as invoicing and follow-up, while making it a lot easier to see all customer communications in one glance instead of searching through countless emails.
Solutions can come as a standalone option that focuses solely on specific accounts receivable processes or as a more comprehensive suite of accounting solutions. For example, FreshBooks offers accounts receivable plus inventory management, accounts payable, and much more.
Improve Cash Flow While Preserving Customer Relationships
A good accounts receivable workflow reduces the invoice-to-cash cycle, which improves cash flow. Cash flow problems are the number one reason small businesses fail.
Commonly, it’s not a problem of making sales, but cash flow timing. Not only do delinquent clients make it hard to predict cash flow, but chasing payments can take away a lot of time that business owners can otherwise use more productively.
Also, dealing with delinquent clients who ignore your reminders may frustrate many business owners to the point where they give up and write off the invoice. And often, late payments happen for a variety of reasons. A tactful accounts receivable approach helps businesses get paid fast while preserving the customer-to-client relationship.
Save on Labor Costs: An Affordable Alternative for Small Businesses
It’s common for large corporations to hire employees to handle accounts receivable solely, but smaller businesses may not yet have the means. Accounts receivable software is the perfect solution for businesses that realize the importance of an accounts receivable solution but don’t yet have the revenue to invest in an accounts receivable team or employee.
What to Look For in an Accounts Receivable Software
When Purchasing Accounts Receivable Software, consider the following features
- Online invoicing and automated follow-up: Drafting emails and consistently following up with multiple clients is a tedious, time-consuming process. Most accounts receivable software can automate this for you while still allowing you to keep a personal touch.
- Multiple online payment options: Allowing multiple payment options reduces friction, leads to faster payments, and improves the payment experience for customers and clients
- Customizable invoices: Invoices with clear payment terms improve the chance of getting paid on time
- Mobile-friendly: Mobile apps make it easier for customers to pay on the go
- Comprehensive dashboards and reports: Makes it easier to predict cash flow, plan follow-ups, and make strategic business decisions.
- Collection services: Most accounts receivable software companies either have their own team of collections specialists or integrates seamlessly with a dedicated collections software
- Integrations: The right accounts receivable software should integrate with your accounting solution and a variety of other software.
Accelerate the Invoice-to-Cash Cycle
Every client pays on time in a perfect world, and you don’t need to stress about accounts receivable. However, this can’t ever be guaranteed. Accounts receivable software that you can rely on is a gamechanger for businesses that struggle with cash flow due to late payments.
Try one or more solutions on this list and experience the power of accounts receivable for yourself.