Best AI-Based Accounts Receivable Automation Software

Key Features of Accounts Receivable Software

HighRadius accounts receivable management software offers a comprehensive suite of features designed to automate and optimize every aspect of your accounts receivable process. From AI-driven insights to seamless cash application, our accounts receivable software enhances efficiency, accuracy, and collaboration, helping your team save time and effort.

Turn Credit Risk into Business Gains with AI Insights

Accelerate the new customer onboarding process and capture key credit information efficiently.
Gain a prioritized list of customer accounts to review and streamline multi-level credit approvals
Access out-of-the-box integration with over 35 global credit agencies, enabling comprehensive risk analysis and credit assessments.

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Speed Up Payments with Smart, Automated Invoicing

Leverage seamless integration with 20+ AP portals for automated invoice uploads.
Give buyers access to self-serve buyer portals for improved customer experience.
Easily exchange documents, respond to queries and collaborate seamlessly with enhanced buyer-supplier collaboration.

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Prioritize, Predict, and Optimize Every Collection Effort

Leverage AI to analyze customer payment behavior, predict overdue accounts, and optimize follow-up strategies.
Automate past-due notices, reminders, account statements, and other letters from a library of 100+ email templates.
Double calls and send 3x more personalized emails with features like In-App Dialer, and intelligent email inbox.

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Make Cash Application Effortless For Your Teams

Automate over 90% of remittance capture with AI-powered OCR for faster cash application.
Link payments to invoices and remittances using pre-built algorithms to recognize bank info and payer names.
Utilize AI-guided exception management and automated deduction coding to streamline exception handling and maximize accuracy.

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Simplify Deduction Management and Prevent Revenue Leakage

Utilize AI validity predictors to identify valid and invalid deductions, speeding up the resolution process.
Aggregate claims from over 250+ portals and emails, increasing efficiency by 30% and reducing manual effort.
Streamline deduction coding and auto-match claims to trade promotions for faster pricing and resolution analysis.

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Drive Impact with Data-driven Decisions

Access real-time, customizable dashboards and reports to gain deep insights into your AR health.
Benchmark your performance by comparing your AR metrics with best-in-class standards and industry peers.
Track KPIs and trends for business outcomes and uncover improvement opportunities.

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Reduce Complexity in B2B Payments with Embedded PayFac Capabilities

Enables small and mid-sized businesses to accept electronic payments easily, without any complex infrastructure or multiple vendor relationships.
Supports 135+ currencies and 200+ payment methods—cards, ACH, SEPA—on fully PCI-DSS compliant rails.
Helps qualify transactions for lower interchange rates through Level 2 & 3 Data Processing and recover processing costs through transparent surcharges.

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How Accounts Receivable Management Software Works?

Automate Credit Approvals Deliver & Track Invoices Capture & Match Payments Prioritize & Collect Faster Resolve Deductions Automatically Analyze AR Performance in Real Time

AI-Based Risk Assessment

The system uses AI to evaluate the creditworthiness of customers, helping reduce exposure to high-risk accounts.

Real-Time Credit Monitoring

Customer payment behaviors are continuously monitored, enabling proactive credit control.

Automated Credit Limit Setting

Based on customer history and risk analysis, the system sets and adjusts credit limits automatically.

Reduced Default Risk

By controlling credit exposure and identifying potential issues early, the software helps prevent payment defaults.

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Invoice Automation

Invoices are sent automatically to customers, ensuring timely billing and fewer delays.

Real-Time Status Tracking

Businesses can monitor the status of invoices and payments at any time, reducing the need for manual checks.

Automated Payment Reminders

The system sends scheduled reminders to customers, prompting timely payments and reducing overdue accounts.

Improved Cash Flow Management

With faster collections and better tracking, companies maintain healthier cash flow and reduce DSO (Days Sales Outstanding).

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Multi-Source Data Aggregation

The software collects remittance data from various sources like emails, bank statements, and customer portals.

AI-Powered Payment Matching

Intelligent algorithms match payments to the correct invoices with high accuracy, even when details are inconsistent.

Automated Reconciliation

Reconciliation is performed in real time, eliminating delays and errors in cash application.

Efficient Exception Handling

Guided workflows help teams resolve payment mismatches or exceptions quickly, improving overall efficiency.

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AI-Powered Prioritization of Risky Accounts

Automatically rank customers using aging, credit data, and predicted payment delays to drive smarter follow-ups.

Personalized, High-Volume Outreach at Scale

Auto-generate dunning emails and call prompts tailored to each customer, without adding manual effort.

Trigger Smart, Context-Aware Next Actions

Launch disputes, send payment links, or escalate accounts based on how customers respond to outreach.

Optimize Collector Workload for Maximum Impact

Assign accounts dynamically based on capacity, account value, and urgency—boosting team efficiency.

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Invalid Deduction Detection

AI algorithms flag potentially invalid or unauthorized deductions for further review.

ERP Integration

Valid deductions are automatically coded and posted to the ERP system, saving time and ensuring consistency.

Faster Dispute Resolution

The system provides visibility and insights into each deduction, helping resolve disputes swiftly.

Minimized Revenue Loss

With better accuracy and control over deductions, companies reduce revenue leakage and improve recovery.

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Comprehensive Metrics Tracking

Track KPIs such as overdue accounts, DSO, collection rates, and customer aging in one place.

Insight into Customer Behavior

Understand customer payment patterns to improve forecasting and relationship management.

Data-Driven Financial Planning

Use performance data to inform strategic decisions and forecast cash flow more accurately.

Continuous Process Optimization

Analytics help identify inefficiencies, allowing businesses to fine-tune accounts receivable for long-term growth.

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Benefits of Accounts Receivable Solution

Accounts receivable solutions offer more than just task automation—they transform the way businesses manage their cash flow. By streamlining accounts receivable workflows,companies achieve faster collections, reduced manual workloads, and better credit management. This holistic approach to accounts receivable process automation ultimately drives financial success.

Better Cash Flow

Enjoy faster payment processing and more predictable cash flow with AR solutions. Improved visibility into payment cycles empowers businesses to plan ahead, invest confidently, and support sustainable growth.

Enhanced Efficiency

Automate repetitive tasks, enabling your AR team to focus on high-impact activities. With less manual intervention, collections become faster and more efficient, improving team productivity and reducing delays.

Improved AR Metrics

Gain real-time insights into critical metrics like DSO, DDO, past dues, and CEI. These tools help refine AR strategies, minimize outstanding balances, and consistently drive better financial performance.

Reduced Operational Costs

Automation eliminates inefficiencies by reducing process-related expenses, such as bank fees and manual workloads. This allows small and large enterprises to cut costs while achieving greater operational efficiency.

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Challenges of Accounts Receivable Management

Most businesses rely on manual processes for accounts receivable management, leading to inefficiencies, delays, and a lack of visibility. These challenges negatively impact cash flow, increase operational costs, and affect customer satisfaction.

Inconsistent Follow-Ups

Manually tracking overdue payments often leads to uncoordinated efforts and delayed reminders. Without a structured system, high-priority accounts can be overlooked, prolonging days sales outstanding (DSO), disrupting cash flow, and lowering overall collection efficiency.

Time-Consuming Payment Matching

Reconciling payments with invoices manually involves cross-referencing multiple data points across spreadsheets or systems. This tedious process consumes significant time and increases the risk of errors, delaying financial reporting and leaving less bandwidth for strategic tasks like forecasting or credit risk analysis.

Inefficient Deduction Handling

Resolving disputes manually is complex and time-intensive. AR teams must sift through incomplete data, coordinate with other departments, and manually investigate claims. This slows resolution times, creates internal bottlenecks, and leaves money tied up in unresolved deductions, impacting profitability and customer satisfaction.

Customer Experience Issues

Errors in invoices, delays in payment processing, and slow responses to queries frustrate customers. These inefficiencies create a poor customer experience, reducing trust and loyalty, and may even jeopardize long-term business relationships in competitive industries.

How Our Automated Solutions Helps Business to Overcome AR Management Challenges?

Our intelligent accounts receivable platform addresses the challenges of manual AR processes—such as inconsistent follow-ups, time-consuming payment matching, inefficient deduction handling, and customer experience issues. By automating and optimizing AR workflows, we help businesses streamline operations, reduce costs, and gain better control over cash flow. Here's how we do it:

Proactive Collections with AI-prioritized Worklist

With accounts receivable collections software, managing overdue accounts becomes effortless. Our AI-powered prioritized worklist automatically sorts and highlights accounts that need attention the most. This ensures your team is always tackling the most urgent collections first, boosting efficiency and minimizing delays. By focusing on the right accounts at the right time, you can lower DSO, improve cash flow, and maintain a smooth, consistent follow-up process—without the guesswork.

AI-Driven Payment Matching and Automation

AI-driven payment matching and automation revolutionize your cash application process by automatically matching incoming payments to open invoices with unmatched accuracy. Using advanced AI algorithms, our accounts receivable management software learns from historical data to continuously improve matching precision, achieving a 90%+ automation rate for same-day cash application.

Maximize Deduction Recovery with AI Capabilities

HighRadius’ AI deductions validity predictor transforms the way you manage deductions by cutting down research time and enhancing recovery rates. The AI analyzes historical deduction data and flags potentially invalid deductions instantly, allowing your team to focus on actionable cases. With this, you can resolve up to twice as many deductions per day, significantly boosting efficiency and enhancing the recovery rate.

Better AR Efficiency with Real-Time Accuracy

Features like automated invoice generation and AI-powered payment reminders, help ensure that customers receive accurate, timely invoices and reminders, eliminating common errors and delays. Our self-service portal empowers customers to track payment statuses, view invoices, and resolve queries on their own, reducing response times and increasing satisfaction. Additionally, real-time payment matching ensures that customer payments are processed quickly and accurately, preventing delays and minimizing friction.

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Role of AI in Accounts Receivable Automation

Switching to AI-powered accounts receivable software boosts collections team efficiency by automating repetitive tasks, reducing errors, and increasing productivity. AI-driven worklists prioritize collections based on invoice value and customer behavior, while real-time payment tracking accelerates cash application. Additionally, centralized data enhances collaboration and decision-making, resulting in faster collections, better cash flow, and reduced operational costs.

AI-Driven Collections Prioritization

AI algorithms analyze customer behavior and invoice values in real-time to rank accounts based on their likelihood of payment. By automating the prioritization of high-risk or high-value accounts, collections teams can direct their efforts where it matters most, ensuring quicker resolution and reducing overdue balances. This leads to timely follow-ups, optimizing accounts receivable collections workflow.

Automated Cash Application

With AI in accounts receiavble, the cash application process becomes more efficient. AI-powered cash application software can automatically match incoming payments with open invoices, eliminating the need for manual intervention. This not only speeds up the cash posting process but also increases accuracy, reducing errors caused by human oversight and improving overall cash flow management.

Enhanced Forecasting for Delinquencies

AI-powered automated accounts receivable solutions use advanced data analytics to predict payment trends and potential risks by examining past behaviors and payment history. By forecasting which customers are more likely to delay or default, businesses can take early action to prevent cash flow issues, such as blocking orders or adjusting credit limits, thus minimizing financial risks.

Increased Operational Efficiency

Automating routine tasks like payment reminders, follow-ups, and report generation through AI reduces the need for manual input, allowing teams to focus on higher-value tasks. AI-driven accounts receivable automation platform also ensures that workload distribution is more effective, helping organizations achieve cost savings and boosting productivity by reducing the time spent on repetitive, low-value activities.

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From Automated to Autonomous: How Agentic AI Is the Future in AR Automation Software

Contextual Decision-Making, Not Just Rules

Agentic AI doesn’t just follow pre-set workflows—it evaluates transaction history, risk profiles, and behavioral cues to make informed AR decisions. This means more accurate credit limits, smarter dispute routing, and proactive order management.

Autonomous Workflows Across Modules

Agents can independently initiate actions across invoicing, cash application, deductions, and collections. For example, one agent might flag a short payment while another launches a claim backup retrieval without waiting on human input.

Cross-Functional Collaboration by Design

These agents don’t work in silos—they pass context between systems and teams. A deduction agent can automatically notify collections if a short pay relates to an open dispute, ensuring smoother resolution paths.

Scalability Without Linear Cost Growth

Unlike rule-based accounts receivable automation, agentic systems adapt and scale with volume spikes without needing more headcount. They self-prioritize, learn from outcomes, and reassign tasks dynamically to maintain throughput.

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The Business Value of Accounts Receivable Solutions: Calculating Your ROI

Days Sales Outstanding (DSO)

See a significant reduction in DSO as your accounts receivable platform speeds up invoicing and payment collections. Automated reminders and streamlined workflows ensure faster payments, leading to improved cash flow and liquidity.

Past Due Receivables

Eliminate the burden of overdue payments. With accounts receivables automation handling follow-ups and collections, past-due receivables drop significantly. Precision tracking and automation keep your receivables aging in check, protecting your financial health.

Collection Effectiveness Index (CEI)

Boost your CEI with AR collections software, recovering more outstanding invoices, faster. Automating key processes and enhancing team productivity maximizes collection efforts and improves cash recovery rates.

Bad Debt Ratio

Reduce your bad debt ratio with accounts receivable management software’s intelligent credit management features. By improving payment predictability and minimizing late payments, the software helps lower the risk exposure, ensuring a healthier balance sheet and more financial certainty.

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How to Choose the Best Accounts Receivable Software?

When it comes to choosing the best accounts receivable software, businesses need a solution that not only handles day-to-day AR operations but also supports long-term growth, improves cash flow, and enhances financial accuracy. Here's what to focus on for an informed decision.

Align with Business Growth and Complexity

Consider the scope and scale of your business today, as well as your plans for future growth. A suitable receivables management software should not only meet your current needs but also have the capacity to evolve as your business grows. Look for accounts receivable software that can handle complex invoicing, multi-currency transactions, and a high volume of transactions.

Maximize Efficiency Through Advanced Features

A best-in-class accounts receivable software should automate core processes, freeing up your team to focus on strategic, high-value tasks. Look for features like automated payment reminders, invoice follow-ups, and proactive credit management to ensure that your accounts receivable operations work seamlessly.

Consider Integration and Data Flow

Accounts receivable software must integrate seamlessly with your existing ERP, CRM, and accounting systems to ensure accurate, consistent data across your organization. Strong API support or pre-built integrations reduce errors, eliminate duplicate data entry, and keep all departments aligned with the latest financial information.

Data Insights for Strategic Decision-Making

Using an accounts receivable system goes beyond transaction processing, offering real-time insights into your financial health. Look for robust reporting and analytics that track aging receivables, identify trends, and forecast cash flow, helping you optimize collections and improve financial decision-making.

Prioritize Security and Compliance Standards

AR software handles sensitive financial data. Prioritize accounts receivable software that offer robust security features, such as encryption and multi-factor authentication. Additionally, ensure that the accounts receivable management platform complies with financial regulations and industry standards to safeguard your business.

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FAQs: AI-Based Accounts Receivable Management Software

What is Accounts Receivable (AR) Automation?

AR automation uses software to digitize invoicing, payment reminders, cash application, and dispute tracking. It replaces spreadsheets and manual emails with streamlined workflows. This reduces errors, speeds up collections, and improves cash flow. Companies see fewer overdue accounts and lower processing costs.

How can Businesses Manage Their Accounts Receivable Efficiently?

With accounts receivable accounting software, businesses can automate routine tasks, segment customers by payment behavior, and set clear credit limits. It allows busiesses to segment customers based on payment behavior, set credit limits, and track key metrics like DSO and aging buckets through easy-to-read dashboards. This cuts delays and strengthens customer relationships.

What is Accounts Receivable Management Workflow Automation?

Accounts receivable management workflow automation uses software to streamline tasks like invoicing, payment tracking, collections, cash posting, and reporting. It eliminates manual handoffs, improves team productivity, speeds up dispute resolution, and ensures consistent, scalable AR operations.

How HighRadius Can Help in Automating Systems & Processes for Accounts Receivable?

HighRadius automates collections, cash application, and credit decisions with AI that predicts delays up to 30 days in advance. It creates prioritized worklists, auto-sends reminders, and reconciles payments. Seamless ERP integrations cut IT overhead. Teams spend more time on strategic collections.

What Industries Do HighRadius Accounts Receivable Software Cover?

HighRadius serves manufacturing,CPG, chemicals, tech,, retail, construction, e-commerce, financial services, auto, pharma, and more. Its platform is industry-agnostic, handling varied credit policies and high transaction volumes. Both Fortune 500 firms and mid-sized businesses use it to reduce DSO. It flexes to complex, global AR needs.

How Can You Check AR KPIs Post Automation?

With dashboards and real-time reports, you can track DSO, aging, dispute resolution rates, and collection effectiveness (CEI). HighRadius flags trends and outliers automatically. This visibility lets you adjust collection strategies fast. Finance teams spot bottlenecks early and protect cash flow.

What is an AI-Powered Accounts Receivable Program?

AI-powered accounts receivable program uses machine learning trained on historical payments to predict delays and prioritize accounts. AI suggests follow-ups and even drafts emails based on customer behavior. Over time, it refines risk scores and outreach timing. This helps collectors focus on accounts with the biggest impact.

What are the features of an Intelligent accounts receivable management system?

The features of an intelligent accounts receivable management system automates the entire AR process. Key features include AI-driven invoice matching, automated dispute management, real-time credit risk assessment, and electronic invoicing with payment integration, ensuring seamless operations and enhanced productivity.

What are the Best Practices of Accounts Receivable Automation?

Start with clear credit policies and automate dunning with tiered reminders. Use AI to segment customers by risk and track KPIs weekly. Integrate AR tools with your ERP for single-source data. Regular policy reviews help adjust terms for changing customer or market risks.

What is the Cost of HighRadius Accounts Receivable Software Packages?

The costs of an AR software package vary based on company size, modules, and transaction volume. HighRadius tailors pricing for mid-market to large enterprises. Most see ROI in 3-6 months through faster collections and lower DSO. A detailed proposal shows expected savings and payback specific to your business.

How does the HighRadius cloud solution compare to other software for accounts receivable?

HighRadius’s AR solution distinguishes itself with Agentic AI orchestrating end-to-end Order-to-Cash, driving 90%+ automation in tasks like cash application and collections. Unlike competitors reliant on traditional OCR or limited integrations, it offers pre-built connectivity to 100+ banks and 1000+ AP portals.

How does HighRadius AR management software handle data security and privacy?

HighRadius maintains top-tier data security and privacy standards, complying with GDPR, ISO, PCI DSS, HIPAA, and SOC. It uses advanced encryption and strict role-based access controls to safeguard financial data. This ensures your accounts receivable operations remain compliant and secure.

Order to Cash

Accounts Payable

Financial Close & Reconciliation

Case Studies

eBooks

Demo Center

Templates

Analyst Reports

Accounts Receivable Automation Software

Top rated AR Software by 1100+ Global Businesses

The #1 Autonomous Finance Solution that Covers Its Cost in < 1 Year

HighRadius Named as a Leader in 2024 Gartner Magic Quadrant for Invoice-to-Cash Applications

Key Features of Accounts Receivable Software

Turn Credit Risk into Business Gains with AI Insights

Speed Up Payments with Smart, Automated Invoicing

Prioritize, Predict, and Optimize Every Collection Effort

Make Cash Application Effortless For Your Teams

Simplify Deduction Management and Prevent Revenue Leakage

Drive Impact with Data-driven Decisions

Reduce Complexity in B2B Payments with Embedded PayFac Capabilities

You Can Too!

How Accounts Receivable Management Software Works?

Benefits of Accounts Receivable Solution

HighRadius is the ONLY Vendor named a Leader in all 3 major analyst reports for Accounts Receivable

2024 Gartner Magic Quadrant

Digital World Class

IDC MarketScape Leader

Integrate Effortlessly with Your Existing ERP Systems

Why We Are the Unmatched Leader in AR Automation

Essential Resources For Smarter Accounts Receivables Management

AR Vendor Evaluation Template

The ROI of AI in AR Automation

Guide to Agentic AI in Accounts Receivable

Challenges of Accounts Receivable Management

Inconsistent Follow-Ups

Time-Consuming Payment Matching

Inefficient Deduction Handling

Customer Experience Issues

How Our Automated Solutions Helps Business to Overcome AR Management Challenges?

Proactive Collections with AI-prioritized Worklist

AI-Driven Payment Matching and Automation

Maximize Deduction Recovery with AI Capabilities

Better AR Efficiency with Real-Time Accuracy

Within 6 Months, Our Receivables Management Software Delivers

HighRadius Accounts Receivable Software Case-Studies & Customer Reviews

Simplify DSO Management with Our Free Excel Template

Role of AI in Accounts Receivable Automation

From Automated to Autonomous: How Agentic AI Is the Future in AR Automation Software

Contextual Decision-Making, Not Just Rules

Autonomous Workflows Across Modules

Cross-Functional Collaboration by Design

Scalability Without Linear Cost Growth

The Business Value of Accounts Receivable Solutions: Calculating Your ROI

Days Sales Outstanding (DSO)

Past Due Receivables

Collection Effectiveness Index (CEI)

Bad Debt Ratio

How to Choose the Best Accounts Receivable Software?

From Roadmap to ROI: How Finance Teams Unlocked Millions in Just 6 Months

FAQs: AI-Based Accounts Receivable Management Software

What is Accounts Receivable (AR) Automation?

How can Businesses Manage Their Accounts Receivable Efficiently?

What is Accounts Receivable Management Workflow Automation?

How HighRadius Can Help in Automating Systems & Processes for Accounts Receivable?

What Industries Do HighRadius Accounts Receivable Software Cover?

How Can You Check AR KPIs Post Automation?

What is an AI-Powered Accounts Receivable Program?

What are the features of an Intelligent accounts receivable management system?

What are the Best Practices of Accounts Receivable Automation?

What is the Cost of HighRadius Accounts Receivable Software Packages?

How does the HighRadius cloud solution compare to other software for accounts receivable?

How does HighRadius AR management software handle data security and privacy?

Accounts Receivable Solutions

Accounts Payable Solutions

Financial Reconciliation & Close Solutions

Treasury & Cash Management Solutions

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