Choosing the right accounts receivable management software

Yes, there are different variables affecting the cash flow of an organization. But nothing compares to accounts receivables (AR) ‘s effect on it. Parameters relating to accounts receivables such as bad debt, invoice aging, and day sales directly impact your cash flow. That’s why you need account receivables software to handle all the heavy lifting. 

AR software is usually designed to streamline any related operations. They help reduce the time it takes to mitigate credit risk, send invoices, receive payments, and maintain accurate records. However, it’s usually a tough decision whenever you’re asked to choose AR management software for your business. It’s easy to get overwhelmed by the variety of available options. The following tips will show you how to select the perfect accounts receivable management software for your business;

01

Carry out some internal research

Purchasing accounts receivable management software is more than something you decide to buy independently. You see, you need the input of your entire organization. Make sure you consult each department to find out what they need. Carrying out some internal research to find what’s missing from your organization is a little more than a regular brainstorming session. 

When you understand the objectives and challenges of everyone, it becomes easier to identify the type of accounts receivables solution to opt for. Some questions to ask your teams include; 

  • Are there any challenges in your account receivables process?
  • How much are you losing due to account receivables challenges?
  • Do you currently have any resources to help you cope with these challenges?

02

Compare available solutions

As soon as you are done assessing the needs and challenges of your organization, the next thing to do is to look for suitable solutions that are compatible with you. Several products from different manufacturers will promise to help you cope with account receivables challenges. The goal of most of these solutions will be to automate workflows and streamline the entire process. 

A simple random will reveal any suitable options to you. Check through their websites and online reviews to find out their standout features, pricing, regulatory compliance, and more essential details.

03

Create a shortlist of vendors

When you are done assessing all the options you’ve come across online, the next thing to do is create a shortlist of all the suitable alternatives. If you came across an account receivables software that pricked your attention, note it down. You’re expected to compare all your available options and decide which of them suits you best. 

The following parameters can be used to determine which of the shortlisted options is best for you; 

  • Application uptime
  • Security measures
  • Ease of use
  • Response levels
  • Grievance TAT

04

Check demos for the software

When you’ve settled on a final option, the next thing to do is contact its vendor via email, chatbot, or social media channels. Then, take demos of the software solution to feel what it’s like to use it. You can go ahead to chat with solution experts to find out its strengths and limitations. 

These are some of the questions to ask during a demo session; 

  • Can you show me how to use this app’s best features?
  • Is there an alternative to perform this same task? 
  • I have a problem recording, recalling, and recovering bad debt. How can this software solution help me?
  • What are the features available on your mobile app? 
  • Are there different features for the desktop and mobile platforms?
  • Do you service other clients in my industry?
  • Do you work with any of my competitors?
  • Can you provide authentic customer testimonials? 

Are you looking for an effective solution to help you manage your accounts receivables? Or do you want customizable software to help you keep track of your bad debts? ExtraPutty is the answer you need. We have the best features to help small, medium, and large businesses automate their AR workflows.