What are the features of accounts receivable?

Accounts receivable features revolve around managing and collecting payments. Key features include invoicing, payment acceptance and processing, cash application to match payments to invoices, collections management for overdue accounts, and credit risk assessment. Modern AR solutions use AI and automation to streamline these processes.

What is the best KPI for accounts receivable?

Days Sales Outstanding (DSO) is one of the most critical KPIs for accounts receivable. It measures the average number of days it takes to collect payment after a sale is made. A lower DSO indicates a more efficient collections process and healthier cash flow.

How can I collect accounts receivable faster?

To collect accounts receivable faster, implement AR automation software. This includes sending invoices electronically through customer-preferred channels, offering multiple online payment options, automating payment reminders, and using AI-powered analytics to prioritize collections efforts on at-risk accounts.

What is an accounts receivable AI solution?

An accounts receivable AI solution is a platform that uses artificial intelligence (AI), machine learning (ML), and automation to manage and optimize the entire order-to-cash cycle. Unlike basic accounts receivable automation that simply follows rules, an accounts receivable AI solution provides predictive insights. It can forecast payment behavior, automate cash application with high match rates, and power automated collections software that personalizes outreach to at-risk customers, helping finance teams collect cash faster and more intelligently.

How do I evaluate different AR automation solutions?

When evaluating solutions, look beyond basic automation and compare providers across these four key categories to ensure you’re getting an intelligent, secure, and user-friendly platform. Core Automation Capabilities: Check that the software can fully automate the big three AR functions. This includes automated invoice delivery (across all channels like email and AP portals), automated payment acceptance, and AI-driven cash application to match payments to invoices. For collections, it should use AI to send smart, personalized reminders, not just static ones. Advanced AI & Machine Learning: This is what separates modern platforms. Look for features like predictive analytics to forecast customer payment behavior and smart cash flow forecasting that uses all your AR data. It should also offer AI-intelligent customer segmentation to automatically group customers by risk or payment habits, allowing for more effective collections strategies. Integration and Usability: The most powerful software is useless if it doesn’t work with your existing systems. Confirm that it has proven, plug-and-play integrations for your specific ERP(s) and any major customer AP portals your team logs into. The user interface should also be easy to use, with customizable, role-based dashboards and flexible reporting. Security and Compliance: Ask for proof of security standards. The provider should be PCI DSS compliant (for secure card payments) and have standard certifications like ISO 27001 or SOC 1 and SOC 2 audits. Also, ask about their AI data policy to ensure your sensitive financial data isn’t used to train public models.