Skip to content

Accounts Receivable Software to Streamline Your Collections

Expedite your collection process, enhance cash flow, and say goodbye to AR headaches with a dedicated Accounts Receivable Automation Software.

Schedule Product Demo

AR Automation Software

What is Accounts Receivable Automation Software?

The Accounts Receivable Automation Software (also called AR Automation Software) is a commercial application that streamlines various aspects of the payment collection process, including invoice generation, payment tracking, reconciliation of incoming payments, and visual reporting & analysis.

Successful businesses across the globe rely on this specialized ERP software to build an easy, coordinated, and efficient way of payment collection, and categorize & prioritize their incoming payments. Ultimately, business executives can set up clear payment policies to reduce instances of bad debts and eliminate bottlenecks in the collection process.

Why Choose Sage AR Automation Module?

Are you looking to prevent delays, inefficiencies, and a lack of visibility into the receivable process? If so, try Sage ERP. This best-in-class accounts receivable automation software helps you manage receivables more efficiently, reduce human errors, and improve cash flow.

Here’s why leading Indian companies are choosing Sage X3 for revamping their traditional manual collection process and optimizing business finances:

  • Reduce Days Sales Outstanding (DSO) and enhance your cash flow
  • Evaluate customer creditworthiness with smart Risk Assessment tools
  • Gain access to an unmatched level of innovation & out-of-the-box integration
  • Achieve long-term growth & stability and drive financial success
Click Here to Talk directly with our Consultant

Automate these 5 Processes with Accounts Receivable Software

1. Invoice Generation

Automate invoice generation, reduce the time spent on manual data entry, and maintain strong financial controls with an integrated AR automation module. Ensure end-to-end compliance with a lower potential for human errors, negligence, and discrepancies.

2. Payment Reminders

Send automated and personalized payment reminders to your customers via email or SMS. Streamlines the collection process and ensures timely revenue collection. Reduce the need for manual inquiries and lower the burden on your workforce.

3. Payment Processing

E-invoices automate various payment processing activities such as authorization, verification, and transaction settlement. Speed up your collection time, minimize processing errors, and receive payments faster than before.

4. Cash Flow Management

Automates various elements like payments, reconciling accounts, and tracking customers’ receivables. Companies can easily manage their cash flow and enhance the cash flow statement. Ensure timely payments from the customers to invest the money in the company’s growth and expansion.

5. Financial Reporting

The finance module in ERP provides detailed reports on accounts receivable, which gives businesses a better understanding of their overall financial health and maintains audit-readiness. Executives can make informed decisions to invest in different projects and manage the cash inflows for the company’s betterment.

How does AR Automation work?

AR
The Accounts Receivable automation process starts by automating the invoice generation process. Here, once the invoice is created, it is automatically routed to the appropriate department for approval. After approval, the invoice is directed to the Accounts Receivable department for further payment. AR automation speeds up the process of handling invoices and payments while also aiding companies manage their receivables. It also makes sure ensure that bills are paid on time and the cash flow is improved. This advanced tool streamlines the process of invoicing customers, recording payments, and issuing refunds. It can also help a company keep track of its Accounts Receivable and Accounts Payable balances.

Features of AR Automation Software

➦ E-invoicing Payment Collection
Sage X3 ERP system electronically manages the invoicing and cash flow process and gains instant visibility in cross-border payments. Reduce repetitive work by automating invoices and integrating accounting systems and A/P portals to deliver invoices.

➦ Claims and Deductions Management
The built-in robotic process automation (RPA) will automatically identify proof of deliveries (POD), claims, and bills of lading (BOL) from customer portals and emails. Sage X3 business intelligence software can also capture line-item data in the claim documents.

➦ Credit Collections Management
The AR processes automatically identify high-risk customers and ensure a faster recovery by predicting when you will get paid. The vital feature of accounts receivable automation process will help minimize instances of bad debt and reduce DSO (Days Sales Outstanding).

➦ Cash Application Automation
You don’t have an accurate invoice number? Don’t worry! The Accounts Receivable automation software will automatically match invoices to payments. Moreover, Sage X3 will also automate deduction coding.

➦ Reporting of Business Critical Data
With the help of data analytics and business intelligence of ERP solution, businesses can analyze the latest payment trends while helping companies manage risk and monitor DSO as well. The data reporting feature can also parse data of all customers as per the specific category with the business management software.

➦ Email Automation
Sage X3 accounts receivable AR offers the feature of email automation with which companies can schedule particular triggers to send emails to customers. For instance, the AP automation will notify customers several times before their payment is pending.

Get paid faster & accelerate your cash flow with Sage X3

Streamline your collections process and accelerate your growth.

Book Your Demo

Benefits of Accounts Receivable Automation Software

1 – Reduces Human Error
AR Automation ensures that tasks are done consistently and accurately, which can help to improve the quality of the work that is produced. Additionally, it can help to free up employees’ time so that they can focus on more important tasks.

2 – Fast Payment Process
Sage X3 ERP software can speed up the process of getting paid. With automation, you can quickly and easily send invoices to your customers. They can pay you online, which can elevate the process of getting paid.

3 – Increased Accuracy
You can significantly improve data consistency with real-time responsiveness. Sage X3 AR automation software implementation increases accuracy by eliminating errors like overpayments, duplicate payments, and fraudulent payments that help reduce bad debt in the long run.

4 – Smooth Customer Communication
Invoices are one of the ways to communicate with customers. Other ways include sending support documents electronically from the automation solution and uploading communications from customers into the workflow.

5 – Relevant Reporting
A company has various departments that require details relating to finance. It will be easier for your accounts department to share critical information with Sage X3 accounts receivable automation system. It can export required data instantly and set filters for ad-hoc reporting using various formats, such as Microsoft Excel or Google Spreadsheets.

6 – One Platform for All Processes
Sage X3 ERP software brings varying information points on one platform. You will get details such as customer information, invoice details, shipping documents, Bills of Lading (BOL), payment options, aging tasks, and comments on a single platform.

Most Common KPIs Used in AR Automation System

1. Collection Effectiveness Index (CEI)

An important metric that helps decision-makers understand the effectiveness of their company’s collection process. CEI is indicated in percentage. A higher CEI is preferred. A lower CEI indicates problems with the collection process.

2. Days Sales Outstanding (DSO)

Helps businesses understand the efficiency of their payment collection process. Provides the average number of days it takes to receive their outstanding payments. A shorter DSO is preferred.

3. Average Collection Period

Helps businesses understand the effectiveness of their various credit-centric policies. Provides the average time taken by customers to make invoice payments.

4. Aging of Accounts Receivable

An extremely important KPI that categorizes unpaid invoices into different segments based on the duration of their outstanding period. Helps understand potential bottlenecks in the collection process and enhances the company’s cash flow.

5. Turnover Ratio

Provides deep insights into a company’s liquidity levels and the effectiveness of the receivable process. A higher turnover ratio may indicate that the company will need to change its credit and collection strategies due to a large pool of open accounts and unrealized revenues.

6. Number of Revised Invoices

Indicates the number of times invoices are required to be revised. Businesses strive to reduce this number as multiple revisions to the invoices can lead to significant manual work and delays in the collection process.

Limitations of the Accounts Receivable Automation Software

1. Higher Upfront Costs

The upfront cost of the AR automation system can be a big hurdle. Thankfully, with the evolution of cost-effective Cloud ERP, it is no longer a big concern.

2. Internet Connectivity

If you choose a Cloud ERP over the traditional On-premise one, you’ll need a stable & uninterrupted Internet connection.

3. Employee Training

Your employees may need training to get hands-on with the newly deployed AR automation system. It may take time and effort.

4. Vendor’s Industry Experience

If you deploy an ERP application from an inexperienced vendor, there’s a good chance that it may lack industry-specific features that are essential to smoothly running your business.

Eliminate Inefficiencies in the Collection Process with Sage X3

AR automation module enables businesses to make timely payment collections, manage their finances, and increase the bottom line. Today, businesses across various industries, from manufacturing, pharma, food & beverages, and automotive to alcohol, are overcoming key challenges in receivables, improving accuracy, and enhancing cash flow.

Sage X3 is a one-stop solution that completely transforms the collection process, reduces the risk of defaults with automated Credit Risk Analysis, and empowers your business with superior cash flow management. Its industry-leading data security mechanisms help your business protect sensitive financial data, safeguard customers’ data, and comply with industry regulations.

Frequently Asked Questions (FAQs)

AR automation system (also known as AR automation module) is a dedicated component of the Enterprise Resource Planning tool, which is used ot digitize the traditional Accounts Receivable (AR) process, collect payments faster, and lower the risk of cash shortages & bad debts. Since it is a long-term investment, it’s crucial to do thorough research to ensure that it aligns with your unique organizational & industry requirements and offers extensive customization features.

There are many AR automation solution providers. Here are the features to look for while selecting the best AR automation software:

  • It offers deep analytical & reporting features to uncover patterns in your customer payments
  • It offers integration with your legacy tools to sync and reflect payments in real-time
  • It offers customer segmentation and filtering options to develop and execute effective strategies for recovery
  • It offers real-time collaboration between individuals and teams for better communication and coordination
  • The vendor provides the required knowledgebase, training, and customization to ensure ongoing success and achieve higher ROI

Sage X3 is the best AR automation software that offers an extensive feature set and optimizes the key processes involved in the collection process, such as invoice generation, payment processing, collections, and reconciliation. Reshape your receivable process, gain significant efficiency, reduce manual payment handling, and make smarter decisions with this strategic tool built for your business.

AI can do wonders in accounts receivable by streamlining the long, tedious & labor-prone tasks and empowering businesses in various other ways. Here’s how:

  • Generate invoices automatically without human intervention
  • Send automated payment reminders in a customer-friendly but assertive tone
  • Make accurate predictions about the company’s future cash flow positions
  • Build and optimize your payment collection strategies for greater revenue
  • Speed up the payment reconciliation process
  • Get insights into Days Sales Outstanding (DSO) and Collection Effectiveness Index (CEI)

Schedule Product Tour

"*" indicates required fields

This field is for validation purposes and should be left unchanged.