Accounts Receivable Management Software Buyers Guide

Anytime Collect- by e2b teknologies 440.352.4700 | www.anytimecollect.com
AccountsReceivable,Credit,and
CollectionsSoftwareEvaluation
2015A/RSoftwareMarketOverview
andApplicationEvaluationTips
JamesMallory
March31,2015

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

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

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: blog.anytimecollect.com/accounts-receivable-software-buyers-
guide-white-paper/

A/R Software Value Proposition

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)

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)

Increase efficiency
Spend 3X as much time and
energy communicating with
customers about payment -
not on administrative tasks.

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.

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

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

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

“In the past, ERP solutions have been
woefully inadequate in terms of credit and
collections functionality”
-Paystream Advisors
ERP / Accounting Systems
• 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

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?

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

• 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.
Paystream Advisors Report

• 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

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.

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.

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.

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.

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.

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

• 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

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: blog.anytimecollect.com/accounts-receivable-software-buyers-guide-white-
paper/

• Recorded Product Demonstrations
• White Papers
• Customer Case Studies
• Educational Webinars
• Other Resources
Download the Resource Guide here: anytimecollect.com/Pages/Resources.aspx
Additional Resources Available

Download these white papers here: anytimecollect.com/Pages/Resources.aspx

Questions?
James Mallory
jmallory@e2btek.com
440.352.4700
www.anytimecollect.com

Accounts Receivable Management Software Buyers Guide

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