Accounts Receivable Automation Software: Features, Integrations, Tangible Outcomes

Accounts Receivable Automation Software - ScienceSoft

ScienceSoft applies 32 years in software development and practical knowledge of 30+ industries to assist customers in implementing robust accounting software.

Accounts Receivable Automation Software: the Essence

Accounts receivable (A/R) automation software helps companies effectively manage customer invoicing, receivables tracking, and collection procedures.

A/R automation solutions integrate with CRM, general ledger software, cash management software, and payment gateways. The implementation of custom accounts receivable automation software may take around 10 months. Average costs for building accounts receivable automation software range from $140,000 to $400,000, depending on the solution complexity.

ROI for accounts receivable automation software can reach up to 390%.

Accounts Receivable Automation Software: Key Features

Trade credit management

  • Assigning and reassigning trade credit terms based on a customer credit history.
  • Pre-built standard (net 30, 45, 90, etc.) and custom trade credit terms.
  • Defining customer discount percentages for early payments / customer penalty amounts for late payments.
  • Multi-department trade credit approval.
  • Creating custom formulas for customer credit rating assessment.
  • Trade credit risk monitoring based on the up-to-date customer credit ratings.
  • Generating credit memos with customizable templates.

Invoice generation

  • Automated invoice generation based on the data imported from ERP, CRM, customer portal, or order management system.
  • Customizable invoice templates.
  • Multi-currency invoices.
  • Multi-language invoices.
  • Automated calculation and application of taxes, discounts (including those on early payments), additional charges (e.g., interest on late payments, carriage, insurance), and billable expenses.
  • Embedding a payment link into an invoice to enable direct payment via a pre-defined payment gateway.
  • AI-powered invoice validation based on SLA/billing guidelines.
  • Pre-defined triggers (invalid account, tax location, or invoice date) to identify suspicious invoices that require a manual check.
  • Signing invoices using an e-signature.
  • Multi-department invoice approval.

Invoice submission

  • Automated invoice submission to customers via email, messaging apps, or a connected customer portal.
  • Incorporating a “Pay now” button into emails to enable direct payment via a pre-defined payment gateway.
  • Sending invoices:
    • in advance/on delivery
    • by schedule/on the spot
    • on a single/recurring basis

Payment processing

  • Real-time payment processing via connected third-party payment gateways (e.g., PayPal, Stripe, Authorize.Net) or a custom payment gateway.
  • Support of multiple payment methods, including bank transfers, wire transfers, ACH, credit cards, cheques.
  • Multi-currency payments.
  • Co-payments.
  • Partial payments, including deposit payment.
  • Split payments.
  • Automated payment collection by direct debit.
  • Automated allocation of received payments.
  • Cash refund/chargeback to the customer’s original payment method.

Invoice tracking

  • Recording invoice data in the A/R ledger.
  • Real-time invoice tracking by status (sent, received, partially paid, paid, due, overdue, etc.).
  • In-app/email user notifications on due invoices (on due dates), received payments, invoices written-off to bad debts, etc.

Dunning management

  • Automated customer notifications about upcoming payment card expiries.
  • Automated payment retry in case of payment failure based on pre-set retry rules.
  • Automated scheduled notifications on a payment method failure if a customer failed to complete payment.

Reconciliation

  • Automatically aggregating data on the amounts received from the company bank accounts.
  • Automatically matching the aggregated payment data with open invoices.
  • Recording full/partial payments against outstanding invoices.
  • Reconciliation of the A/R ledger end balance (against monthly bank statements).

Deduction management

  • Deduction validation based on automatically matching deduction claims with the existing customer commitments.
  • Automatically assigning deduction processing to the staff members performing deduction resolution.
  • Multi-department deduction approval.
  • Automatically sending customer notifications on denied and approved deductions (via email, messaging apps, customer portal).
  • Assigning credit memos to customers upon valid deductions.
  • Applying changes to invoices / invoice records based on approved deductions.

A/R collection planning

  • Creating collection queues by priority based on invoice aging and customer credit profile.
  • Automated creation of collection schedules.
  • Collections tasks assignment/reassignment.

A/R collection communications

  • Personalized collection notifications to customers (via email, messaging apps, a customer portal), tailored by language, frequency, tone, etc.
  • Scheduled collection phone/VOIP calls.
  • Single view/record of all collection-related interactions with customers.

Customer self-service portal

  • Portal customization to match changes in corporate branding.
  • Setting up location-based portal content and ads.

For customers:

  • Adding, saving, and updating personal info, billing details, including tax IDs, and payment methods, including payment card details.
  • Managing subscriptions (update, cancel, pause, etc.).
  • Paying bills, making advance and automated recurring payments.
  • Tracking paid and outstanding invoices.
  • Creating disputes and attaching supporting documents to claim deductions/chargeback.
  • Live chat, submitting support tickets via a portal.

Analytics and reporting

  • Real-time analytical dashboards and configurable ad hoc reports on revenue, received, due and overdue amounts, DSO, debtors, aging balance, etc. (by customer, date, and more).
  • Scheduled monthly reports on A/R totals, A/R turnover ratio, etc.
  • On-demand customer statements by time period.

Security and compliance

  • Multi-factor authentication.
  • Role-based access control.
  • Payment data encryption.
  • Invoice timestamping.
  • Comprehensive audit trail.
  • AI-based fraud detection.
  • Customer data retention and deletion policies.
  • Compliance with global regulatory standards, including GAAP (specifically ASC 606 and IFRS 15), SOC1 and SOC2, PCI DSS, SOX, GDPR (for the EU), ZATCA (for Saudi Arabia), and more.

Speed Up Cash Inflow with Robust A/R Automation

ScienceSoft’s team is ready to plan, build and support accounts receivable automation software to streamline your collection efforts with powerful bespoke functionality.

Key Integrations for Accounts Receivable Automation Software

Key integrations for accounts receivable automation software - ScienceSoft

CRM

  • To upload automatically sales orders and quotes from CRM to A/R automation software and enable input of relevant data when generating invoices.
  • To upload automatically real-time data on paid/open invoices from A/R automation software to CRM to match payments received/dunning or payment delay details to the appropriate CRM records.

General ledger software

To upload automatically data on invoices paid/due/overdue from A/R automation software into the general ledger application to provide relevant data for financial close and financial reporting.

Cash management software

To upload automatically data on the amounts received across a company’s multiple bank accounts from cash management software into A/R automation software for faster invoice reconciliation.

Customer portal

  • To upload automatically up-to-date customer personal info, billing address, payment methods, subscription details from a customer portal to A/R automation software for accurate and timely invoicing.
  • To upload automatically invoices from the A/R automation solution to the customer portal to enable customers to pay invoices via the portal and view their invoice and transaction history.

BI tool

To upload automatically data on the amounts received, due and overdue, and customer interactions on debt collection from A/R automation software to the BI tool to create reports on the forecasted A/R performance.

Success Factors for Accounts Receivable Automation Software

Real-time A/R data collection

To enable high visibility into the current status of the money owed to an organization (paid/partially paid/due, etc.) and ensure timely actions on debt collection.

Fully automated invoice generation

To eliminate manual errors in invoices and ensure rapid invoice creation for timely submission to customers.

ML-powered A/R forecasting

To predict accurately various A/R parameters (e.g., expected payment dates on invoices, or total accumulated customer debt at a specific date in the future) based on historical customer behavior and payment data analysis.

AI-enabled digital assistant

To automatically capture customer promises to pay from emails, messages, recorded calls, provide automated A/R reconciliation, and recommend optimal actions, time and communication channels for proactive debt collection.

A/R Automation Software Implementation Costs and Financial Outcomes

Accounts receivable automation software implementation costs vary from $140,000 to $400,000, depending on the solution complexity.

With accounts receivable automation software, you can reach up to 390% ROI, based on Total Economic Impact™ Study.

Key A/R automation software benefits

  • 2-3x

    faster invoice processing

  • 25-75%

    cut in past-due receivables

  • 30%

    improved timely cash inflow

  • 30%

    cut in bad-debt write-off

  • Up to 80%

    cost savings from fully automated invoicing

  • Up to 50%

    reduction in DSO

  • Eliminated

    manual errors across the order-to-cash cycle

  • When Custom Accounts Receivable Automation Software is the Right Choice

    We recommend choosing the custom accounts receivable automation solution development in the following cases:

    You need accounts receivable management software providing specific features, for example, creating priority rules for payment and collection queues based on your specific trade credit and collection policies.

    You need specific integrations with your existing corporate software, which ready-made accounts receivable automation solutions can provide only via costly and time-consuming customization.

    You need a highly scalable accounts receivable automation solution that allows continuous evolution and functionality extension when needed.

    Implementation of Accounts Receivable Automation Software with ScienceSoft

    In financial software development since 2007, ScienceSoft helps businesses implement effective A/R automation to improve their invoicing and collection processes.

    Accounts receivable automation consulting

    • Accounts receivable automation needs analysis.
    • Assessment of the existing invoicing and payment processing tools and their integration points (if any).
    • Suggesting the optimal accounts receivable automation software features, architecture, tech stack, and integrations.
    • Creating a business case, including cost and time estimates.
    • Implementation planning (providing implementation scenario, risk management plan, etc.).

    Accounts receivable automation implementation

    • Accounts receivable automation needs analysis.
    • Accounts receivable solution conceptualization.
    • Architecture design.
    • Accounts receivable automation software development.
    • Integrating the accounts receivable solution into the existing infrastructure (ERP, CRM, accounting software, etc.).
    • Quality assurance.
    • User training.
    • After-launch support and evolution.
    About ScienceSoft

    About ScienceSoft

    ScienceSoft is a 32-year global IT consulting and IT services company headquartered in McKinney, Texas. With 14-year experience in financial software development, we help businesses plan and develop effective accounts receivable automation software tailored to individual credit and cash collection strategies. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee that cooperation does not pose any risks to our customers' data security. If you are eager to streamline your order-to-cash process with powerful automation, be welcome to check ScienceSoft’s offer on accounts receivable automation software development.