Accounts receivable (AR) automation software should integrate with a wide variety of Enterprise Resource Planning (ERP) systems, like SAP, Oracle, NetSuite, Microsoft Dynamics, to name just a few. However, the best ERP integration options come from AR software platforms that label themselves as “ERP agnostic.” These solutions are considered superior because they offer the widest compatibility for easier implementation as well as a faster time-to-value.
But the best AR software platforms should do more than just integrate with your ERP system.
Here’s what you need to know.
What does ERP agnostic mean?
When an AR software platform is considered ERP agnostic, it can integrate with virtually any ERP system. Essentially, it means that the platform is not dependent on any specific ERP system to run. Should any ERP integration not be available right out of the box, the software provider will work with you to build custom integrations that ensure interoperability. This is particularly the case for home-built ERP systems.
Contrastingly, an ERP-specific solution is created to work only with a specific brand of ERP system – like SAP, Oracle, NetSuite, and others.
Why is ERP integration a key decision-making factor when purchasing AR software?
There are two reasons ERP integration is extremely important.
1. Most companies manage more than one ERP system.
This criterion becomes a critical factor in the buying decision, because many companies maintain more than one ERP. Moreover, many companies grow through attrition, adding new ERPs over time.
Data shows most companies manage at least two ERPs.
Thus, a solution purpose-built only for one ERP can be limiting to future growth.
2. Many companies are undergoing complex ERP migrations
ERP systems are constantly evolving, which means your AR platform will need to keep pace – particularly during ERP migrations when ERPs are being upgraded to a newer version of the software platform. Make sure your AR solution works smoothly with your current ERP and is flexible enough to support future upgrades. Otherwise, you potentially risk facing a double migration scenario that could stall your digital transformation.
Avoid the Double Migration Trap
Choose an AR platform that’s built to integrate with both the existing version of your ERP and whatever upgrades you are coming next. Manual data transfer headaches, custom development, and recertification can all be avoided by selecting an AR software that’s future-proof. Revalidating integrations can delay ERP migrations and financial innovation projects. Learn more in this guide to using your ERP for AR innovation.
Why does ERP integration matter in the first place?
As the foundation of financial operations, Enterprise Resource Planning (ERP) systems serve as the single source of truth for business transactions, financial data, and operational enablement. However, ERPs alone limit the CFOs ability to be competitive. That’s why it’s essential to integrate accounts receivable (AR) software with ERP systems. AR automation platforms rely on official corporate information inside the ERP to augment and automate operations.
AR software platforms capture and exchange data with the ERP system in order to:
- Understand new orders placed
- Generate accurate invoices for clients
- Track payment status
- Reconcile accounts
- Forecast cash flow
- Analyze customer payment behavior
- Support compliance and auditing
- Drive AR performance metrics
The ERP and the AR software must always be in sync.
There’s a lot at stake, here. Any AP software that doesn’t work well with your ERPs (enabling real-time data visibility and information exchange) can slow AR operations. Some consequences include:
- Without real-time data, AR leaders lack up-to-date insight into receivables, making it harder to forecast cash flow or make informed decisions around financial risk.
- If order or delivery data isn’t synced instantly, invoices may be incorrect, leading to disputes and even dissatisfaction among customers.
- Customers may receive outdated statements or reminders for invoices they’ve already paid, damaging trust and relationships.
- Without real-time payment updates, collection efforts may be mistimed, reducing effectiveness and further delaying the payment of overdue invoices.
- Disconnected systems can lead to inconsistent records, making audits more difficult and increasing the risk of non-compliance with financial regulations.
What other integrations are important for AR software?
While ERP systems are a primary success factor when digitally transforming AR operations, other integrations are equally important in breaking down data silos. AR software platforms should connect with ERP systems as well as payment gateways, your clients’ AP portals, and eCommerce platforms.
“AR leaders need wider visibility and deeper interoperability across the entire AR environment.”
Lee An Schommer, CPO, Billtrust
Top features to look for in ERP-integrated AR software
When buying AR software, consider more than just ERPs. Look for additional integrations with these systems:
- AP portals, so invoices can be uploaded for your customers automatically in the format they want, and payment status can be tracked in real time
- Payment gateways enable suppliers to accept payments online by safely, securely transmitting payment information
- Financial institutions enable automated cash application, ACH transfers, and reconciliation
- eCommerce platforms and AR software can work together to boost online sales
The Bottom Line
When all AR-related systems work together, disconnected workflows can be joined into one cohesive operation allowing more holistic AR management. When properly connected, this intelligent ecosystem allows superior cash flow insight and drives better outcomes across the order-to-cash cycle.
Is Billtrust ERP agnostic? What integrations does Billtrust offer?
Yes, Billtrust is considered an ERP agnostic AR automation software. We offer out-of-the-box connectors with many ERP systems. You can explore them all here. Additionally, clients can work with us to develop a custom integration.
Billtrust offers more than just ERP integrations. Here’s a quick look at more facts about Billtrust’s interoperability:
- 260+ AP portal connectors available – some of the broadest compatibility in the industry
- 40+ Connectors to ERPs, banks, financial institutions, and lockboxes
- A variety of eCommerce connections support features that streamline sales calculations, accessibility, and marketing and more
- 6000+ digital finance transformations completed across many industries
3 reasons you’ll love Billtrust’s integration and centralized management
- Real-time data synchronization with your ERP platform and solutions that keep up with your ERP migrations
- Invoice payment status tracking inside your clients’ AP portals – no more login-and-search!
- From invoicing, digital payments, and cash application to collections and credit – everything is in one platform for clear visibility and holistic management
Discover how the Billtrust AR platform centralizes management for AR teams. Watch this quick overview.
A Final Note
ERP integration is the cornerstone of AR automation, because it ensures real-time data synchronization, accurate reporting, and operational efficiency across the order-to-cash cycle. But while companies managing multiple ERPs or undergoing migrations need an ERP-agnostic solution, the best AR software goes beyond connections to ERPs.
They deliver broad interoperability with AP portals, payment gateways, banks, and eCommerce platforms, creating a unified environment that eliminates data silos and accelerates cash flow. This level of integration empowers AR leaders with the visibility and compatibility they need to unite disparate AR workflows into a cohesive system.
Billtrust exemplifies this approach with its extensive library of ERP connectors, custom integration capabilities, and a vast network of integrations with AP portals, financial institutions, and more. By choosing an ERP-agnostic AR solution like Billtrust, businesses can be confident their AR operations will be optimized for years to come.
Ready to see how integration can transform your AR organization? Ask for a personalized demonstration and we’ll show you how to start building a more connected AR strategy.
