AR Management: The 5 essential software features for credit controllers

When a B2B customer's payment is late, it's easy to think they might be struggling financially or unwilling to pay. However, if you've spent time in accounts receivable, you'll know that the real issue is often with the accounts receivable process, not the customer.

This is where AR automation software shines. It simplifies tasks like sending automated payment reminders and uses real-time data and analysis to spot payment trends, manage risks, and monitor Days Sales Outstanding (DSO).

In this piece, we'll look at the AR software automation tools that help credit controllers proactively manage finances instead of just chasing debts. Let's dive into the top 5 AR software features.

1. Features that make repayment painless for your clients

When tackling outstanding payments, experienced credit controllers know that tracking what's owed is only one piece of the solution. Well, the good news is that advanced AR automation software addresses this need by providing features that streamline the repayment process and encourage prompt action.

One key feature is upfront access to all relevant supporting documentation, allowing customers to review their invoices clearly and understand their financial obligations while providing them with all the necessary supporting documents, such as signed proof of deliveries from the get-go, removing the need to ask for these at a later stage.

AR software also utilizes automated remittance forms, which take care of the hassle (and errors) of manual remittance slips while making it simple for customers to advise on the invoices to which a recent payment relates.

Want to know more about invoice remittance advice? Check out System1A's handy AR team guide to Invoice Remittance Advice.

Finally, your AR software should be able to send out payment reminders well ahead of monthly statement runs on autopilot to give your customers a gentle reminder about their payment obligations.

2. Look for features that improve decision-making 
 
Giving credit controllers data-driven decision-making capabilities is essential in today's business landscape. In a recent survey, 67% of respondents believe data intelligence is crucial to making informed business decisions and driving better outcomes, with mature organizations achieving three times the business benefit of the least mature organizations.

AR tools that evaluate the creditworthiness of debtors and assign risk scores give credit controllers an edge in this data-driven era. If this is on your radar, look for software features that assess the creditworthiness of debtors, assign risk scores, and offer comprehensive reporting and analytics capabilities.

Equipped with these new tools, credit controllers can seamlessly monitor collection performance and unearth critical customer behavior patterns. By leveraging these data-driven insights, they can make informed decisions that optimize collections and drive organizational success.

3. Look for features that light up your blind spots

Your Accounts Receivable software should automatically track and monitor customer accounts, providing you with real-time insights into aging balances, payment history, and collection efforts.

With this visibility, credit controllers gain the superpower of proactively identifying and addressing potential delinquencies - before they escalate. 
 
4. What are the integration features like?

What are the integration capabilities of your AR software? It's crucial to assess how seamlessly the AR software can integrate with your ERP, CRM, email, and other vital systems and applications to eliminate data silos and achieve a unified view of customer information throughout your organization. (By the way, System1A integrates seamlessly with leading ERPs in under 45 minutes).

Curious about how AR software can improve your credit control function when integrated into your ERP or accounting system? Read more in our credit controller's guide to accounts receivable automation software.

5. Features that enable the accounts receivable function to be collaborative

Cross-functional communication between departments, breaking down silos, and improving data integrity. Are these on your list of must-haves going into 2024?

If you're shopping for an AR automation platform, look for solutions that do not heavily restrict access for other departments by charging exorbitant per-user licensing fees. Instead, opt for solutions encouraging cross-company use and interaction by allowing unlimited users with permissions tailored to each user's profile.

What sets System1A apart from other Accounts Receivable automation platforms?
 
Our user-friendly dashboards offer comprehensive data and insights into AR and sales positions for teams across your company, going beyond the scope of automated debt collection.

These dashboards equip credit controllers with efficient tools for managing the collections process, encompassing everything from the dispatch of invoices to the tracking and reconciliation of payments.

What's more, they serve as a unified source for accurate information, aiding teams in making well-informed, strategic decisions. This enables a customized approach to each customer, facilitates the understanding of payment trends, and assists in anticipating potential risks.

Unlock the power of Accounts Receivable software… in under 45 minutes 
 
System1A integrates seamlessly with leading ERP systems, facilitating the regeneration of documents and seamless data handling, crucial for accurate and efficient AR management. The best part? You can install System1A in under an hour.

Ready to use the one cloud-based application that enables stakeholders to make better decisions that impact your order-to-cash (O2C)processes?

<<Book a demo or request a free trial>>