Not all accounts receivable software is created equal, just as not all businesses are created equal. There are so many different options on the market it could make your head spin. So, where do you start? In this two-part series we are going to cover the major checklist points. Once you have a better idea of what you specifically need for your company, you’ll be able to narrow down your search from the hundreds to just a few. Remember: not one solution is going to fit every companies’ needs, so think about yourself and what will be best for your company.
In part one, we’re going to take a look at some general categories that accounts receivable software fits into. Based on these categories, you’re going to have a better idea of what your company needs from an accounts receivable software and what options are on the market.
- General or ERP Specific
In the most general sense, there are two types of accounts receivable software on the market. Either it is created specifically for your ERP or accounting software, or it was created by a third-party completely agnostic from any one system. There is an upside and downside to each. The upside to having an ERP specific application is that the integration will, obviously, be flawless. However, a lot of the times the functionality is not as powerful as a third-party solution. The upside to a third-party system is that it can follow you no matter what ERP system you implement in the future and will have more customization possibilities to fit your business needs. The downside is they won’t have inside-out knowledge of your ERP system like your vendor will.
- B2B v. B2C
The entire space of B2B collections versus B2C collections varies widely. A lot of B2B companies are extending credit to customers and need the ability to look up credit reports and report back, automate invoicing, and keep track of every customer. B2C companies are typically collecting payment at the point of sale. This creates to wildly different accounts receivable software functions. Make sure that you are looking at accounts receivable systems that fit into your B2B or B2C model.
- Hosted v. Premise
Whether a hosted solution or a premise solution is right for your company is usually based on company size, the amount of in-house IT work that can be done and personal preference. If you’re a smaller company with a limited IT staff, deploying accounts receivable software on-premise may be a big undertaking and costly option, hosting the solution may be the best option for you and vice versa if you are a large company.
This is just the tip of the iceberg when it comes to choosing an accounts receivable software solution that best fits your company needs. Solutions can vary on functionality, strengths and weaknesses, business models, industry type and a lot more. You’re going to have to narrow down the list by eliminating accounts receivable software solutions that will never work for you. In the next post, we’re going to help you narrow it down by looking at the different solutions available based on company size. Stay tuned!