10 essential questions when choosing accounts receivable software for business operations

1. What features does your accounts receivable software offer for digital payment processing?

Gone are the days when simply sending an invoice and recording the payment sufficed. Today’s AR software should be a powerhouse of features for digital payment processing. Look for providers offering a unified platform consisting of automated invoice delivery, multiple payment gateways, and robust reconciliation systems.

Your focus must be on solutions that streamline the payment experience for your customers. Do they provide a portal with multiple payment options like credit cards or ACH? A great provider will have a user-friendly interface that can handle bulk payments, accept partial payments, and automatically allocate them to specific invoices. Does the solution also automate the processing of virtual card payments through a digital lockbox, saving your team from hours of manual data entry?

2. How does your software ensure data security and compliance with payment regulations?

Security and compliance are not negotiable in the realm of financial services. Ensure your accounts receivable software is PCI DSS compliant if it processes credit card payments. For ACH transactions, they should meet the requirements of NACHA, the Electronic Payment Association.

Inquiring about how the software protects data at rest and in transit is prudent. Are they SOC compliant and ISO 27001 certified? How often do they conduct security audits?

Beyond standard compliance, ask how they approach security at a strategic level. Top-tier providers build their platforms with enterprise-grade security and privacy-by-design principles to ensure your financial data remains protected while still benefiting from network intelligence.

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3. Can your software integrate seamlessly with existing accounting systems?

It’s critical to inquire how well the AR software integrates with your current systems. Seamless integration ensures that transactional data flows accurately between systems, ruling out the possibility of errors due to manual data entry or transfer.

A truly integrated solution goes beyond simple data flow; it should eliminate siloed constraints, allowing for intelligent, cross-functional queries that maintain context across your entire AR ecosystem.

Some key systems to mention are your ERP systems, banking software, and business intelligence tools. If the integration is clunky, the benefits of your new AR software will be greatly mitigated by the costs and complexity of incompatible systems.

4. What level of customer support and training does your company provide?

Excellent customer support and training are essential. If you simply purchase software without the resources to understand and use it, you might as well be throwing money into a black hole of inefficiency.

Ask about the onboarding process. Do they provide training webinars, user manuals, or dedicated account managers? Additionally, inquire about the customer service options. Will there be a support hotline available 24/7? Quick problem resolution can make or break your AR system’s effectiveness.

5. How customizable is the software to suit our specific business needs?

Businesses are unique, and your software should reflect that. Inquire about the flexibility of the software to adapt to your specific needs. Can you customize the invoice templates to align with your brand? Is it possible to add custom fields or workflows?

The best solutions are not just customizable but highly configurable, allowing you to set granular payment policies aligned to business goals. The more tailored the solution, the better it will match your internal processes and improve your team’s productivity. Don’t settle for a one-size-fits-all solution in a world where customization can streamline operations.

6. Does the software have reporting capabilities to track payment trends and performance?

Data-driven decisions are the hallmark of successful financial management. Your software should provide comprehensive reporting capabilities to track payment trends, delay patterns, and team performance over time.

Ask if the software can generate AR aging reports and, more importantly, if it leverages AI to provide highly accurate  cash flow forecasts. Does it offer proprietary benchmarking tools, like a Collections Effectiveness Index (CEI) or a Days-to-Pay (DTP) Index, to measure your performance against industry peers? The ability to mine this data will offer valuable business insights and inform strategic decisions.

7. What is the pricing structure of your accounts receivable software?

Affordability is key, and a transparent pricing structure is a non-negotiable element. Inquire if the software is offered as a subscription service (SaaS) or if there are one-time licensing fees. Is the subscription cost scalable with your business growth?

Be thorough in your queries and ensure you understand every aspect of the pricing model, including any potential hidden costs such as setup fees, transaction costs, or costs for additional users.

8. Can your software accommodate future scalability as our business grows?

You’re not investing in an accounts receivable software solution for the short term. Your choice should facilitate long-term growth. Ask the provider about the scalability of the software. Can it handle a 10% growth in the number of invoices or customers? How about 50%, or even 100%?

Scalability is also about performance and intelligence. The right software acts as an accelerant, using AI not just to handle more volume but to make your processes more efficient and autonomous as you grow.

How does the system handle peak loads around payment deadlines? Can it automatically allocate resources to handle increased transaction volumes?

9. How user-friendly is the interface for both employees and customers?

An intuitive user interface is mission-critical. Your AR software should be easy to use for both your team and your customers. A clunky, difficult-to-use interface will lead to errors, lower adoption rates, and, ultimately, a loss of value.

Ask for a personalized demo to understand the day-to-day experience using the software. Test different tasks, from creating invoices to verifying payments. Gauge the general feel of your team by seeking their feedback after the demo.

10. Are there any case studies or client testimonials showcasing successful digital payment processing with your software?

Nothing speaks louder than a track record of delivering on promises. Ask for case studies or client testimonials that demonstrate successful digital payment processing. Can they provide references from businesses similar to yours in size or industry?

Evaluating success stories can give you a glimpse of how the software will perform in your environment. Look for signs of improved collection times, better customer retention, and streamlined financial operations. Look for proof points, such as how Cooper Electric saved $120,000 in annual fees or how Dakota Supply Group saved $44,000 in postage by increasing e-Invoicing.

Benefits of accounts receivable software solutions for business operations

These ten questions help you evaluate AR software options, but why does choosing well matter so much? The right accounts receivable software transforms your financial operations from reactive to proactive. Here’s how AR automation helps you control costs, accelerate cash flow, and improve customer satisfaction:

• Faster cash flow: AR software lets customers pay invoices online through ACH, credit cards, and eChecks. No more waiting for paper checks or chasing down payments—your DSO drops and working capital improves.
• Fewer costly errors: Automation eliminates manual data entry mistakes in reconciliation and payment application. You get cleaner books, accurate reports, and avoid time-consuming disputes.
• Happier customers: Self-service portals let customers view invoices, pay their way, and check payment history anytime. This convenience strengthens relationships and speeds up payments.
• Better financial visibility: Real-time dashboards show payment trends, overdue accounts, and collection performance. You can make smarter cash management decisions with actual data.
• Built-in security: Top AR solutions include encryption, secure payment gateways, and data protection features that keep customer information safe while meeting regulatory requirements.
• Growth without growing pains: Cloud-based platforms handle more invoices, different billing structures, and various payment types without requiring new infrastructure. Your systems grow with your business.

Essential considerations for choosing accounts receivable software

Your choice of accounts receivable software can have a profound impact on your business’s financial health. The ten questions we covered help you vet both software capabilities and vendor commitment to meeting your operational needs. Meanwhile, understanding the benefits of AR automation reinforces why making the right choice matters so much for your cash flow, cost control, and customer relationships.

Make these evaluation criteria a standard part of your selection process, and you’ll identify the accounts receivable software that delivers real value for your business.

Want to learn more about accounts receivable software and how it can help your company move finance forward?

Talk with a Billtrust Expert today!