In choosing accounts receivable software, there are a few different aspects to look at to decide which would be the right fit for you. In the last post in this two-part series, we looked at the different categories that accounts receivable software can fall under. This ranges from a B2B or B2C solution, a general software or ERP solution, or whether the solution needs to be hosted or on-premise. Now, we dive into what size solution is right for your company. Just like a large, global company wouldn’t use QuickBooks, you wouldn’t want to use accounts receivable software that isn’t sized correctly for you. Below are the different sizing options of accounts receivable software on the market today.
<READ: How To Choose A Powerful Accounts Receivable Software: Part One>
- Small Business Applications
A small business accounts receivable software is fit for a company that is ready to come off of spreadsheets and aging reports. This usually happens when they can no longer manage this manually and begin to start making mistakes, or it becomes a full time job. Most small businesses will notice these issues once they are managing 100 customers or 100 invoices monthly. Small business accounts receivable software is usually suited for a one person accounts receivable department and can automate simple reminders and help to manage call notes. This is the most simplistic application.
- Midmarket Applications
The midmarket of accounts receivable software is where the most options exist. Typically, these solutions allow for 3 to 5 users, to it is a smaller team in the accounts receivable department. More functionality exists, allowing for inquiry users to check on the team, such as executives, workflows to help manage customers, alerts based on customizable rules, collection letter, past due notice and invoice automation and a lot more.
- Enterprise Applications
When you get to the enterprise level, most of the solutions will previously exist within the ERP system that you are using. However, if you are using the built-in ERP system it can be hard to customize the rule settings and other functionality without having to pay more. There are enterprise systems available as an add-on, which allow for unlimited amount of users and the most automation available on the market.
- Industry Specific Applications
Some industries need the ability to manage their accounts receivable in a very specific way. For example, construction companies need to be able to manage liens automatically with alerts and transportation companies need the ability to manage a large volume of disputes. Industry specific accounts receivable software caters to those niche needs.
When the search first begins for accounts receivable software, many people think it will be easy. You simply need a solution that will automate the process. However, you will quickly realize there are many more options that offer vastly different functionality. Use this checklist before evaluating to know what immediate needs you should be looking for, and cross a few off the list to narrow the search.