Selecting the right accounts receivable software can transform how UK businesses manage their cash flow and customer relationships. With 87% of businesses experiencing late payments and the average UK SME owed £21,000 in outstanding invoices, having effective AR management tools has become essential for business survival and growth.

This guide examines the leading accounts receivable software options available to UK businesses in 2025, helping you understand which solution best fits your specific needs and budget.

What is Accounts Receivable Software?

Accounts receivable software automates and streamlines the process of managing money owed to your business by customers. These platforms handle everything from invoice creation and delivery to payment tracking and collection activities. Modern AR software goes beyond simple invoice management, offering features like automated payment reminders, customer communication tools, and detailed analytics.

For UK businesses, specialised AR software addresses unique challenges including VAT management, Making Tax Digital compliance, and integration with UK-specific payment methods like BACS and Direct Debit. The best solutions combine these local requirements with powerful automation capabilities that save time and improve cash flow.

Key Features UK Businesses Should Look For

When evaluating accounts receivable software for your UK business, certain features prove particularly valuable in addressing local market needs and improving collection efficiency.

Automation capabilities form the foundation of effective AR software. Look for platforms that automate routine tasks like sending payment reminders, matching payments to invoices, and updating customer records. This automation should extend to more complex scenarios, such as managing payment plans, handling partial payments, and dealing with disputed invoices.

UK-specific functionality is crucial for compliance and efficiency. The software should handle VAT calculations automatically, support Making Tax Digital requirements, and integrate seamlessly with UK banking systems. Support for Direct Debit through providers like GoCardless can significantly improve collection rates for recurring payments.

Integration capabilities ensure your AR software works seamlessly with existing systems. Look for platforms that connect with popular UK accounting software like Xero, QuickBooks, and Sage. Integration eliminates duplicate data entry and ensures consistency across your financial systems.

Reporting and analytics provide insights into your receivables performance. The best platforms offer real-time dashboards showing key metrics like Days Sales Outstanding (DSO), aging analysis, and customer payment patterns. These insights help you make informed decisions about credit policies and collection strategies.

Leading AR Software Solutions for UK Businesses

Équisettle

Équisettle distinguishes itself as a comprehensive accounts receivable and collections platform that combines traditional AR management with advanced case management capabilities. This unique approach makes it particularly effective for businesses dealing with complex collection scenarios or managing ongoing B2B relationships.

The platform's case management system allows businesses to handle each customer relationship holistically rather than treating individual invoices in isolation. This approach proves especially valuable when dealing with payment disputes, negotiating payment plans, or managing high-value accounts that require special attention.

ÉquiSettle's workflow automation goes beyond simple payment reminders. The platform allows you to create sophisticated, multi-step workflows that adapt based on customer behaviour, payment history, and account characteristics. Integration with QuickBooks, Xero, and GoCardless ensures smooth data flow across your financial systems.

A unique feature of ÉquiSettle is its supply chain risk monitoring capability, which provides early warning signs of potential payment issues by tracking changes in your customers' business environment. This proactive approach helps prevent bad debt before it occurs.

Chaser

Chaser has established itself as a popular choice among UK SMEs, with over 10,000 users worldwide relying on its automated payment chasing capabilities. The platform focuses on maintaining positive customer relationships while improving collection rates through personalised, automated communications.

The software's strength lies in its simplicity and effectiveness. Users can customise payment reminder sequences, set up thank you messages for payments received, and track all customer communications in one place. Chaser's approach emphasises politeness and professionalism, helping businesses collect payments without damaging customer relationships.

Integration with major accounting platforms is seamless, and the platform offers transparent, tiered pricing that makes budgeting straightforward. However, Chaser's focus on communication automation means it lacks some of the advanced workflow and case management features that larger businesses or those with complex collection needs might require.

Fluidly

Fluidly takes a broader approach to financial management, combining accounts receivable features with intelligent cash flow forecasting. The platform uses machine learning to predict payment behaviour and provide actionable insights about your financial future.

The software's predictive capabilities help businesses anticipate cash flow gaps before they become critical. Visual dashboards make it easy to understand your current position and future projections, while automated credit control features handle routine collection tasks.

Fluidly works particularly well for businesses that want to combine AR management with broader financial planning and forecasting. However, businesses looking purely for collections functionality might find the additional features unnecessary.

Credit Hound

Credit Hound offers comprehensive credit management functionality with deep features for managing credit risk and collections processes. The platform provides sophisticated tools for credit checking, limit setting, and dispute management.

The software excels in environments where credit management is complex and requires detailed control. Integration with major ERP systems makes it suitable for larger organisations with established credit control teams. However, smaller businesses might find the platform's extensive features overwhelming and its traditional interface less intuitive than newer solutions.

Satago

Satago focuses on simplicity, offering straightforward AR management with automated payment chasing and credit checking capabilities. The platform handles the basics well, making it accessible for smaller businesses without dedicated credit control resources.

While Satago provides good value for basic AR needs, it lacks the advanced features and customisation options that growing businesses might require as their needs become more complex.

How to Choose the Right AR Software

Selecting the right accounts receivable software requires careful consideration of your business's specific needs, size, and growth plans. Start by assessing your current AR challenges and identifying which features would provide the most value.

Consider your business complexity. If you deal with straightforward payment collection from many customers, a simple automation tool like Chaser might suffice. However, if you manage complex B2B relationships, negotiate payment plans regularly, or need to track collection activities across teams, a more comprehensive solution like ÉquiSettle would better serve your needs.

Integration requirements play a crucial role in your decision. Ensure your chosen platform works seamlessly with your existing accounting software and payment processors. The cost of switching or maintaining multiple systems often outweighs initial savings from choosing a cheaper solution.

Scalability matters for growing businesses. Choose software that can grow with your needs rather than requiring a platform change as your business expands. Consider not just your current requirements but where your business will be in two to three years.

Implementation Best Practices

Successfully implementing AR software requires proper planning and execution. Begin by documenting your current processes and identifying areas for improvement. This preparation helps ensure you configure the new system to address your specific challenges.

Data migration deserves special attention. Work with your chosen provider to ensure customer data, invoice history, and payment records transfer accurately. Most providers offer migration support, but understanding the process helps avoid disruptions.

Training ensures your team maximises the value of your new AR software. Involve all stakeholders from the beginning, including sales teams who might need visibility into customer payment history. Proper training reduces resistance to change and accelerates adoption.

Start with a pilot group before rolling out to all customers. This approach allows you to refine your processes and identify any issues before they affect your entire customer base. Monitor results closely and adjust your configuration based on what you learn.

Making Your Decision

The UK accounts receivable software market offers solutions for businesses of all sizes and complexity levels. While each platform has its strengths, your choice should align with your specific business needs and growth ambitions.

For businesses requiring comprehensive AR management with advanced case handling and risk monitoring capabilities, ÉquiSettle offers the most complete solution. Its unique combination of traditional AR features with sophisticated case management and workflow automation provides capabilities beyond basic invoice chasing.

Companies seeking straightforward payment automation will find value in Chaser's proven approach, while those wanting to combine AR management with cash flow forecasting should consider Fluidly.

Whatever your choice, implementing dedicated AR software represents an investment in your business's financial health and growth potential. The right solution will not only improve your cash flow but also strengthen customer relationships and provide insights that drive better business decisions.

Ready to transform your accounts receivable management? Book a demo with ÉquiSettle to discover how our comprehensive platform can address your specific AR challenges and help your business thrive.

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