Finance Software
Accounting

Category Compare: Accounts Payable vs. Accounts Receivable Software

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In this report, we define and compare accounts payable and accounts receivable software so you can decide which tool is right for your business.

People often confuse accounts payable and accounts receivable transactions because of how they are recorded in the general ledger. But the two software categories are quite distinct in their functionality and use. In this report, we highlight the similarities as well as differences between the two tools so you can determine which one better suits your business needs.

What is accounts payable software?

Accounts payable software helps businesses track how much they owe to other parties, such as suppliers and vendors. It provides features that assist in managing expenditure, tracking invoices, identifying invoice errors, and generating cash flow reports—all of which improve general fund management and reduce manual efforts.

Accounts payable solutions are designed to work with general ledger and accounting applications. They are mostly used for spend management by finance and operations teams and can be bundled with core accounting solutions.

What is accounts receivable software?

Accounts receivable software helps businesses track how much other parties, such as clients and customers, owe to them. It automates the recording of payments on outstanding invoices and assists users in managing their cash flow cycle by generating reports on pending collections and monthly statements against customer invoices.

Accounts receivable software is mostly used by professionals such as accountants, consultants, lawyers, customer service managers, and software vendors to track outgoing invoices.

What do they have in common?

Both accounts payable and accounts receivable tools help manage a company’s recurring payments and cash flow. However, they deal with two sides of the transaction—accounts payable tracks how much money the company owes on credit to other parties, while accounts receivable tracks how much money clients and other parties owe to the company.

Accounts payable software features

Accounts receivable software features

Which tool is right for you?

For most small businesses, late payments are a huge issue. If you’re often chasing payments, get an accounts receivable solution to track the money your customers or clients owe to you. On the other hand, if you’re dealing with mounting debt and unpaid invoices, an accounts payable solution will come in handy.

Once you get an idea of which software to use, head to our accounts payable and accounts receivable software category pages where you can find a sortable list of products, software reviews from verified users, and comprehensive buyers guides.

Want to narrow down your search to only the most popular and highest-rated solutions? Check out Capterra’s Shortlist reports for the top accounts payable software and accounts receivable software tools—our reports are based on an analysis of thousands of user reviews.

10 top-rated accounts payable and accounts receivable software

These 10 products, listed in alphabetical order, are among the top rated in both software categories.


Note: Reviews and ratings data in the product cards is as of Oct. 26, 2021. New reviews may have been added since the publication of this article, so the reviews data in this piece may not reflect current conditions.

The products in the category comparison images are examples to show a feature in context and are not intended as endorsements or recommendations by Capterra. They have been obtained from sources believed to be reliable at the time of publication.

Methodology

To be included in the list, the products must:

  1. Be listed under Capterra’s 2021 Shortlist report for accounts payable and accounts receivable software. Learn more about the Capterra Shortlist methodology here.
  2. Meet our software market definition for accounts payable and accounts receivable software:
    • Accounts payable: “Accounts payable software automates the process of controlling cash expenditures. These applications help improve cash management and reduce effort by tracking invoices, providing tools for capturing errors, and generating reports. Accounts Payable solutions are designed to work with General Ledger and Accounting applications.”
    • Accounts receivable: “Accounts receivable software helps users manage and automate the process of money coming into their organization from invoices.”

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Looking for Accounting software? Check out Capterra's list of the best Accounting software solutions.

About the Author

Ashish Upadhyay

Ashish Upadhyay

Writer @ Capterra, helping digital Davids beat Goliaths. I cover small business trends in CRM, accounting, real estate, insurtech, and emerging tech. B.A English, University of Delhi. Currently pursuing my master’s in English Literature. When I’m not working, I’m planning my next trek, playing video games, or working out.

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