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Accounts Receivable Management Software Buyers Guide


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There are many accounts receivable management software solutions available on the market today- but which one will best fit your business needs? This slide deck will provide you with everything you need to know about selecting accounts receivable management software to help you improve invoice collection, reduce days sales outstanding, improve cash flow, and more.

Anytime Collect is a proven credit and collection management software solution that helps automate the entire invoice management and collection process. Learn more at

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Accounts Receivable Management Software Buyers Guide

  1. 1. Anytime Collect- by e2b teknologies 440.352.4700 | AccountsReceivable,Credit,and CollectionsSoftwareEvaluation 2015A/RSoftwareMarketOverview andApplicationEvaluationTips JamesMallory March31,2015
  2. 2. Anytime Collect- by e2b teknologies 440.352.4700 | 1980-1990’s ERP gains traction & popularity among manufacturers, distributors, service-driven organizations, and others 1990- 2000’s - Salesforce automation (SFA) software morphs into CRM -Mainframe migration to PC -Migration from MS DOS and UNIX to MS Windows -Cloud Computing emerges Today Just like the movement to ERP in the 90’s companies are adopting A/R management software to fill the gaps & integrate strategic business areas into one place. Evolution of Business Technology
  3. 3. Anytime Collect- by e2b teknologies 440.352.4700 | A/R Software Today • Maturing and evolving market with more applications to choose from • Small business systems - a growing market • MANY new cloud-based systems, most with limited functionality • Subscription ranging from $20 to $200 per month • Mid-Sized systems- highly fragmented market • Few systems launched in the last 5 years or so designed for growing companies • Most established vendors offer on-premise and hosted deployment models • Large Enterprises- limited market • Few options available on the market today
  4. 4. Anytime Collect- by e2b teknologies 440.352.4700 | What Can You Do With A/R Collections Software? Extend the A/R module in ERP/accounting systems with advanced features that allow you to: • Automate broken promise tracking • Report on critical A/R information • Centralize information from your ERP system • Enable customer self-service and online bill pay • Manage and collaborate on important documents • Manage & automate communications related to invoices • Set up alerts and notifications • Much more. Our Buyer’s Guide & RFP template lists over 320 features available in some of today’s popular A/R software applications. Available here: guide-white-paper/
  5. 5. Anytime Collect- by e2b teknologies 440.352.4700 | A/R Software Value Proposition
  6. 6. Anytime Collect- by e2b teknologies 440.352.4700 | Get paid faster • Companies using CCM software get paid about 20% faster than companies who use manual or disconnected systems. • On average companies get paid in 61 days despite 28 day credit terms. • A 20% improvement means you get paid 12 days (almost 2 weeks) faster! (Paystream Advisors)
  7. 7. Anytime Collect- by e2b teknologies 440.352.4700 | Reduce Bad Debt Write-Offs • Companies write-off 4% of accounts receivable annually to bad debt. • Companies implementing CCM typically reduce bad debt by 15-25% Example savings: $10 million company is writing off $400,000 annually. A 20% reduction provides a savings of $80,000 annually. How much would you need to sell to make up for that loss? (Paystream Advisors)
  8. 8. Anytime Collect- by e2b teknologies 440.352.4700 | Increase efficiency Spend 3X as much time and energy communicating with customers about payment - not on administrative tasks.
  9. 9. Anytime Collect- by e2b teknologies 440.352.4700 | Rapid Return on Investment Recent research from industry Analysts Paystream Advisor shows that companies who use A/R management software to automate collections are realizing ROI in as little as 2 months.
  10. 10. Anytime Collect- by e2b teknologies 440.352.4700 | Additional Benefits • Increase working capital • Increase efficiency • Improve communication • Improve customer service • Reduce Admin costs • Shorten the sales to payment cycle • Minimize credit risk • Gain valuable insight • Centralize information • Reduce legal costs • Peace of mind • Get paid faster • Improve cash forecasting • Resolve disputes faster • Reduce financing costs • Maximize unused credit lines • Reduce bad debt write-offs • Improve borrowing position • New employee training • Reduce dependency on collection agencies • Reduce legal costs • Simplify audits & compliance • Improve cash position
  11. 11. Anytime Collect- by e2b teknologies 440.352.4700 | Software Selection Criteria • Using the right tool for the job • The right sized solution • Specialty & industry specific applications • Collection Agency Software • Additional Software Considerations • Vendor Longevity & Experience
  12. 12. Anytime Collect- by e2b teknologies 440.352.4700 | Manual Systems, Spreadsheets, & Processes • Not every business needs to invest in A/R software • Manual processes may be suitable for companies with less than 100 active customers or less than 100 invoices to manage monthly. • As you increase your customer base or invoice volume, this strategy becomes significantly more difficult. • Remember: With A/R automation, companies can spend 3X as much time and energy talking with customers, not working on spreadsheets! The right tool for the job
  13. 13. Anytime Collect- by e2b teknologies 440.352.4700 | “In the past, ERP solutions have been woefully inadequate in terms of credit and collections functionality” -Paystream Advisors ERP / Accounting Systems The right tool for the job • Limited capabilities • Lack workflow automation • Require manual data entry • Lack reporting capabilities • Do not support quote-to-cash process • Ineffective & inefficient Activity Average time with ERP Average time with accounts receivable software Research account information 5-10 minutes 2 minutes Actual phone call with customer 10-15 minutes 10 minutes Post-call activities 10-15 minutes 4 minutes Total time spent 25-40 minutes 15 minutes Customer Value Group Time spent on single activity manual vs. automated
  14. 14. Anytime Collect- by e2b teknologies 440.352.4700 | Customer Relationship Management (CRM) CRM Marketing Sales Support Customer Service Both CRM & A/R Software: • Allow users to manage accounts & contacts • Allow for Communicate • Have built-in reporting and intelligence capabilities However, CRM is designed for sales – not for accounting! CRM cannot answer critical collector questions such as: • When did I last remind the customer of an outstanding invoice? When should I send another reminder? • When should I make the first call? second? • What is the procedure for a dispute? • When was the last time we conducted a credit review on this customer? • What is the process • for escalation when larger invoices continue to age? The right tool for the job
  15. 15. Anytime Collect- by e2b teknologies 440.352.4700 | Home Grown & Custom Applications CCM software companies do one thing – they develop CCM software! 10 years ago you may not have been able to find a solution flexible enough for your business, but things have changed. You have specific needs, but you have more important things to do than develop and maintain software, such as: • manufacturing products • servicing customers • distributing goods The right tool for the job
  16. 16. Anytime Collect- by e2b teknologies 440.352.4700 | • Highly specialized software designed specifically to help companies manage accounts receivable, credit, and collections. • Integrated to ERP/accounting software to centralize customer accounts, invoices, and payments. • Proven to help companies get paid faster, reduce bad debt, and more. • 10 – 20% reductions in daily sales outstanding (DSO) • 25% reductions in past due receivables • 15 - 25% reductions in bad debt reserves • ROI in as little as 2 months. The right tool for the job Paystream Advisors Report
  17. 17. Anytime Collect- by e2b teknologies 440.352.4700 | • No formula for calculating the size you need. • Most A/R software systems integrate with specific ERP solutions which are segmented by company size & complexity. • In our experience: • Businesses typically have one full time employee managing every $10 million to $20 million in annual credit sales. • This can vary widely by industry. The right sized solution
  18. 18. Anytime Collect- by e2b teknologies 440.352.4700 | Small Business A/R Software • Most small businesses don’t need CCM software until they are managing about 100 customers or 100 invoices monthly. • Typically support a single user. • Most of the entry-level CCM products are offered as hosted solutions available for subscription pricing for under $100 per month. • Many small businesses use their QuickBooks system for A/R management • Basic features allowing for reminders to be sent to customers and for notes to be made for collection calls. • Other light CCM products are available on the Intuit marketplace including Anytime Collect for QuickBooks. Anytime Collect provides a dashboard, cash forecast, customizable email templates, configurable workflow, prioritized call list, and other features not available in other products at this price point. The right sized solution
  19. 19. Anytime Collect- by e2b teknologies 440.352.4700 | Mid-Market A/R Software • Companies with between $10 million to $500 million in credit sales with average of 5-10 full time credit users. • Sage, Microsoft, and similar ERP vendors have options available including solutions developed exclusively for their ERP system. • General products are also available on the open market in hosted or on premise deployment models. • Prices typically range from $100 to $300 monthly for subscriptions or generally around $1,000 to $3,000 per user for a perpetual license purchase. • Most midmarket companies will require at least 2 users. • Our average midmarket customer has 3-5 full credit users + several inquiry users who can receive alerts and inquire on information in the software. The right sized solution
  20. 20. Anytime Collect- by e2b teknologies 440.352.4700 | Enterprise A/R Software • Integrate with SAP, Oracle, or other large ERP systems. • A/R modules can be overly complicated for smaller divisions • Long implementation timeline • Many use midmarket software like Anytime Collect in subsidiaries • Enterprise CCM is typically available either hosted or on premise • Prices from $5,000 to $15,000 per credit user. • At Anytime Collect, our Enterprise customers range from smaller divisions of global enterprises with few users to Global companies with hundreds of users. • Implementations typically require a few weeks to a month for system configuration, setup, and user training. The right sized solution
  21. 21. Anytime Collect- by e2b teknologies 440.352.4700 | Specialty & Industry Applications • Construction companies- lien management • Transportation and logistics companies - disputes related to freight invoices & access to information not typically included in out of the box CCM software. • Professional service firms, manufacturers, distributors, and others- supporting documents related to invoices (timesheets, proof of delivery, bills of lading, etc.) • Medical & healthcare –compliance with HIPA, collections from multiple sources for co-pays and/or multiple insurance providers. • Specialized applications generally do a great job with the industry-specific requirements but often lack the robust features included in most general applications.
  22. 22. Anytime Collect- by e2b teknologies 440.352.4700 | Agency Collection Software Business Collection Software Collection Agency Applications • Software applications designed for Collection Agencies is different than those designed for businesses. • Difficult to tell the difference between collection agency software and CCM business applications at first glance. • Subtle differences, drastic impact.
  23. 23. Anytime Collect- by e2b teknologies 440.352.4700 | Choose Your Vendor Wisely Vendor Longevity & Experience • Understand the background of each CCM vendor • Markets they serve • Product features • Other considerations • Many companies (especially newer cloud CCM vendors) did not exist just a few years ago • It is also important to understand how each vendor integrates their business applications with your ERP or accounting software. • select a vendor with a solid background and reputation in the industry with a strong integration strategy to ensure your success • Few CCM vendors have a strong background in ERP business software
  24. 24. Anytime Collect- by e2b teknologies 440.352.4700 | • General Features • Technology • Hosted vs. Premise • User Types • Accounts • Financial Transactions • Automation & Workflow • Collection Activities • Business Intelligence & Reporting • Business Credit Risk Management • Electronic Invoice Presentment & Payment (EIPP) • Document Management • Cash Forecasting • Global Features • Professional Services • Project Management • References & Resources • Pricing & ROI Additional Software & Vendor Considerations
  25. 25. Anytime Collect- by e2b teknologies 440.352.4700 | Make a more educated choice with these resources: • 2015 A/R Software Buyer’s Guide • Current A/R market overview • List of popular solutions to consider • Vendor & software evaluation best practices • Request for Proposal Template • Over 320 features in popular A/R solutions to streamline the evaluation and selection process. • ROI calculator • Enter your company data to get a potential ROI on software investment Available here: paper/
  26. 26. Anytime Collect- by e2b teknologies 440.352.4700 | • Recorded Product Demonstrations • White Papers • Customer Case Studies • Educational Webinars • Other Resources Download the Resource Guide here: Additional Resources Available
  27. 27. Anytime Collect- by e2b teknologies 440.352.4700 | Download these white papers here:
  28. 28. Anytime Collect- by e2b teknologies 440.352.4700 | Questions? James Mallory 440.352.4700