Kolleno Payments
Most businesses start with an ERP system to manage core business processes—finance, inventory management, supply chain management, even HR. But when it comes to accounts receivable, many teams quickly realize that ERP add-ons can only go so far. They record transactions but don’t help you manage cash flow or customer relationships in real time.
That’s where dedicated accounts receivable software comes in. It adds automation, visibility, and workflow control that standard ERP accounting functionality can’t match.
In this article, we’ll break down the differences between ERP and AR software, explain how each fits into your financial management stack, and show when your business might need one—or both.
What Is Accounts Receivable Software?
Modern accounts receivable software goes beyond simple tracking. Software like Kolleno automates every step of the collection process, reducing manual work while giving your finance teams total control over cash flow. The result? Businesses get invoices paid faster and maintain stronger customer relationships.
Here’s what that looks like in practice.
1. Automated invoice management and reminders
Accounts receivable software automatically sends invoices, schedules follow ups, and issues automated reminders based on customer payment behaviour.
Finance teams no longer have to chase outstanding invoices manually—the system ensures timely payments and a consistent customer experience.
2. Intelligent cash application and reconciliation
With built-in cash application features, tools like Kolleno match payments to corresponding invoices instantly, even when remittance details are incomplete.
This automation reduces errors and saves hours of reconciliation time. What’s more, it gives finance leaders a real-time view of their cash position.
3. Unified communications and customer portal
Accounts receivables software solutions include secure customer portals where clients can view customer invoices, make payments, and resolve queries quickly.
Every interaction—from reminders to receipts—is logged automatically, helping teams maintain visibility and preserve positive customer relationships.
4. Real-time dashboards and analytics
Finance teams can access real time insights on cash flow, overdue balances, and collector activity through customisable dashboards.
This clarity allows teams to make informed decisions, prioritize high-value accounts, and fine-tune AR processes to meet business goals.
5. Seamless integration with ERP and accounting systems
Integrate your accounts receivable software with the rest of your tech stack. For example, Kolleno connects effortlessly with existing ERP systems, accounting software, and customer relationship management (CRM) systems. This ensures data flows across multiple departments without silos, creating a single source of truth for all financial data and business operations.
6. Scalable automation for growing businesses
Whether you’re a small business or a larger enterprise, Kolleno adapts to your business needs.
Its flexible architecture means you can scale accounts receivable automation as invoice volumes grow—without extra headcount or complex IT support.
What Do ERP Add-Ons Offer (and Where Do They Fall Short)?
ERP software—short for enterprise resource planning—is designed to help organizations manage their core business processes from a single system. It connects departments like finance, inventory management, supply chain management, and human resources, giving leadership visibility across the entire business.
Within that ecosystem, most ERP systems include basic accounting functionality such as general ledger, accounts payable, and accounts receivable modules. These tools are excellent for recording financial transactions, maintaining balance sheets, and consolidating financial reporting — but they’re not built for the realities of day-to-day collections.
Let’s look at what ERP add-ons can (and can’t) do.
1. Strength: Centralized financial data
ERP systems excel at connecting financial data across multiple departments. They create a single database that supports financial management, expense tracking, and regulatory compliance.
For companies with complex operations, this unified structure helps ensure every transaction—from procurement to payroll—is properly accounted for.
But while ERP systems offer great operational visibility, they’re not optimized for front-line accounts receivable tasks like reminders, automated reconciliation, and cash application.
2. Strength: Integration across business functions
Because ERP platforms span the supply chain, finance, and operations, they streamline information flow between teams.
For example, when a product ships, the system can automatically update inventory management, financial systems, and customer data. This improves accuracy and reduces duplication, especially for businesses with large volumes of orders or projects.
However, while this integration supports the entire business, it rarely extends to proactive AR automation—meaning finance teams still have to rely on manual data entry or external spreadsheets for collection tracking.
3. Limitation: Reactive rather than proactive
ERP add-ons tend to focus on record-keeping—not cash recovery. They log financial transactions, but they don’t send follow ups, analyse customer payment behaviours, or automate dispute resolution.
For busy AR teams, this means delayed cash flow, slower payments, and less control over how money moves through the business.
In contrast, a dedicated platform like Kolleno uses automation and real-time alerts to help teams act before problems occur, maintaining healthy cash flow and reducing days sales outstanding (DSO).
4. Limitation: Limited visibility into real-time AR data
ERP systems are great at producing periodic financial reports, but they often lack real time data on collections.
Without insight into who has paid, who’s overdue, and what’s in dispute, finance leaders are left reacting after the fact. That’s why many teams plug in accounts receivable software alongside their ERP—to access up-to-date information, automate workflow automation, and improve cash flow forecasting.
5. Limitation: Complexity and scalability
ERP implementations can take months and require deep IT involvement. Even simple updates or process changes can demand significant configuration.
As your invoice volumes grow, that rigidity can slow down your team’s ability to adapt. Dedicated AR tools like Kolleno, on the other hand, are built for flexibility—delivering quick setup, seamless integration with your ERP accounting software, and scalable automation without disrupting other business operations.
Accounts Receivable Software vs ERP Add-Ons: Key Differences
Still unsure as to the main differences between accounts receivable software and ERP add-ons? Here are the 5 main ones to consider.
1. Focus and purpose
ERP software (short for enterprise resource planning) is designed to connect your entire business. It manages everything from inventory management and human resources to procurement and financial management.
Its accounts receivable module records financial transactions, but it’s not built to manage cash recovery or customer follow ups.
By contrast, dedicated accounts receivable software—like Kolleno—focuses on one goal: getting you paid. It automates core financial tasks such as invoicing, reminders, and cash application, ensuring your finance teams can manage the money customers owe in real time.
2. Level of automation
ERP add-ons support basic accounting functionality, but many processes remain manual. Teams still enter data, send follow ups, and reconcile bank statements by hand. This slows down cash flow and increases the risk of errors.
Modern accounts receivable automation tools replace this manual work with smart workflows. Kolleno, for instance, automatically schedules follow ups, sends automated reminders, and matches payments to corresponding invoices.
The result: invoices get paid faster, collectors spend less time chasing, and cash flow management becomes proactive rather than reactive.
3. Visibility and reporting
ERP systems provide a central record for financial data, but their reporting is often periodic—good for balance sheets and compliance, less useful for day-to-day decisions.
AR software, on the other hand, delivers real time data and customisable dashboards that show overdue invoices, upcoming payments, and total cash position.
With Kolleno, finance leaders can instantly see who’s behind, who’s paid, and where to prioritize their AR team’s effort—supporting better financial health and faster decision-making.
4. Customer experience
Traditional ERP systems weren’t designed with customers in mind. They manage data, not relationships. They typically don’t include a customer portal or self-service tools, meaning clients have to email or call to get invoice copies or make payments.
Kolleno bridges that gap. Its built-in customer portal allows customers to pay securely, view invoices, and resolve issues independently. This improves the overall customer experience and reduces friction in the collection process—helping maintain healthy, long-term customer relationships.
5. Flexibility and scalability
Implementing or upgrading an ERP platform can take months—and any new automation usually requires IT support. For businesses with growing volumes of invoices, that rigidity can create real bottlenecks.
By contrast, accounts receivable software is built for agility. Kolleno integrates seamlessly with existing ERP accounting software, letting you keep your single source of truth while enhancing AR performance.
It scales easily as your business needs evolve, helping both small businesses and larger enterprises streamline operations without major system overhauls.
6. Impact on business performance
ERP systems keep your financial systems running. But accounts receivable software actively drives business performance—improving cash collection, reducing manual data entry, and freeing finance teams to focus on strategy.
For most companies, that translates to stronger cash flow, better operational efficiency, and more confident financial management.
Final Thoughts
For growing businesses, relying on ERP add-ons alone is no longer enough. They record transactions and generate reports—but they don’t help teams manage cash flow, speed up payments, or improve customer relationships in real time.
To keep pace with modern demands, companies need dedicated accounts receivable software that automates the details, eliminates manual work, and gives finance teams complete visibility over their cash position.
That’s where Kolleno stands out.
It brings together accounts receivable automation, intelligent cash application, and customer-friendly workflows into one intuitive platform. If your ERP software tells you what happened, Kolleno helps you shape what happens next. Book a demo with Kolleno today to see how smarter AR automation can transform your collections, strengthen your cash flow, and give your finance team the control it deserves.
