Effective management of accounts payable (AP) and accounts receivable (AR) is critical for maintaining a healthy cash flow in any business. Small and medium-sized enterprises (SMEs) in India, in particular, need efficient solutions to streamline these processes to avoid payment delays, maintain good vendor relationships, and ensure timely collections. According to recent surveys, late payments cost Indian SMEs nearly ₹10,000 crores annually, highlighting the importance of efficient AP and AR systems.

With businesses in India increasingly digitizing their financial processes, many have turned to accounting software in India that offers comprehensive accounts payable and receivable functionalities. Here are the Top 10 Accounts Payable and Receivable Solutions that can help businesses better manage their cash flow and maintain strong financial health.

1. QuickBooks

QuickBooks offers a comprehensive solution for managing both accounts payable and receivable, with built-in tools that integrate seamlessly into the platform's overall accounting features.

• Key Features:

  • Automated invoicing and payment reminders for AR.

  • Manage bills and payments to suppliers efficiently through AP features.

  • Syncs with bank accounts for real-time updates.

• Best For: SMEs looking for a full-suite accounting software in India that includes AP and AR management.

• Statistics: QuickBooks is used by over 7 million businesses globally, making it one of the most trusted software platforms for small businesses.

2. Zoho Books

Zoho Books is a popular cloud-based solution that helps businesses manage accounts payable and receivable with ease. Its robust features for AP and AR make it an ideal choice for growing businesses.

• Key Features:

  • Automate vendor payments and manage outstanding bills in the AP system.

  • Set up recurring invoices, automate reminders, and track payments for AR.

  • GST-compliant invoicing and bill payments specific to Indian business needs.

• Best For: SMEs in India looking for a scalable accounting software in India with integrated AP and AR solutions.

• Statistics: Zoho Books saw a 35% growth in user adoption among Indian SMEs in 2023 due to its ease of use and customization for local tax laws.

3. TallyPrime

TallyPrime is a well-known accounting software in India, offering extensive features for managing both accounts payable and receivable, along with comprehensive GST support.

• Key Features:

  • Real-time monitoring of vendor payables and customer receivables.

  • Integrated payment reminders and collection tools.

  • GST-compliant invoices and bills with automated reconciliation.

• Best For: Indian businesses needing localized AP and AR management.

• Statistics: TallyPrime is trusted by over 2 million businesses in India for its accounting and cash flow management solutions.

4. FreshBooks

FreshBooks is a cloud-based accounting solution, particularly useful for service-based businesses and freelancers who need simplified AP and AR functionalities.

• Key Features:

  • Create and send professional invoices, track receivables, and manage overdue payments.

  • Manage bills and expenses for accounts payable, ensuring on-time payments.

  • Automated payment reminders to avoid late collections.

• Best For: Freelancers and small businesses in India looking for a simple but effective AR and AP tool.

• Statistics: FreshBooks is used by over 30 million businesses worldwide for managing accounts payable and receivable.

5. Xero

Xero offers a cloud-based accounting solution with strong AP and AR management capabilities, helping businesses track both payables and receivables seamlessly.

• Key Features:

  • Track and manage bills, purchase orders, and vendor payments.

  • Invoice clients and monitor receivables with automated follow-ups for outstanding payments.

  • Multi-currency support, perfect for businesses dealing with international clients.

• Best For: SMEs looking for an all-in-one accounting software in India that supports both AP and AR in local and foreign currencies.

• Statistics: Xero serves more than 3.5 million businesses worldwide, making it a strong choice for managing AP and AR effectively.

6. HisabKitab.co

HisabKitab.co is a locally developed accounting software in India that caters to the unique needs of Indian SMEs by providing simplified AP and AR management tools.

• Key Features:

  • Track bills and vendor payments, ensuring timely payables management.

  • Manage customer invoices, monitor receivables, and automate reminders for overdue payments.

  • GST-compliant invoicing and integration with Indian banking systems.

• Best For: Indian SMEs looking for easy-to-use accounts payable and receivable management software.

• Statistics: HisabKitab.co has seen a 20% increase in user adoption in 2023, with users praising its India-specific features.

7. Wave

Wave is a free accounting software that offers essential AP and AR functionalities for small businesses and startups, making it ideal for companies with limited budgets.

• Key Features:

  • Create and track invoices, manage customer payments, and set up recurring billing for AR.

  • Organize and monitor vendor payments and expenses for AP.

  • Built-in payment processing with easy reconciliation.

• Best For: Startups and small businesses looking for a free AP and AR solution.

• Statistics: Wave has over 2 million active users, particularly among startups and small businesses globally.

8. Vyapar

Vyapar is a business management software designed specifically for Indian SMEs, offering integrated solutions for managing accounts payable and receivable.

• Key Features:

  • Manage vendor bills and payments with real-time tracking of AP.

  • Create GST-compliant invoices, manage customer receivables, and track overdue payments.

  • Integrated with banking systems for streamlined transactions.

• Best For: Indian SMEs in the retail and manufacturing sectors needing localized AP and AR management.

• Statistics: Vyapar has more than 5 million downloads and is widely used by Indian businesses for billing and invoicing.

9. Sage 50cloud

Sage 50cloud offers a hybrid solution that combines desktop and cloud features, providing advanced tools for managing accounts payable and receivable.

• Key Features:

  • Manage and track payments to vendors, suppliers, and contractors in AP.

  • Automated invoicing, payment reminders, and tracking of receivables for AR.

  • Real-time reporting on cash flow and outstanding payables and receivables.

• Best For: Growing businesses looking for robust AP and AR management along with comprehensive accounting features.

• Statistics: Sage 50cloud is used by over 400,000 small businesses globally for managing AP and AR.

10. Bill.com

Bill.com is an advanced solution that automates accounts payable and receivable processes, helping businesses manage payments and collections efficiently.

• Key Features:

  • Automate bill payments and vendor management with AP automation.

  • Streamline invoicing and collections with AR features, including automated follow-ups.

  • Integration with popular accounting platforms like QuickBooks, Xero, and Sage.

• Best For: Businesses looking to automate their AP and AR processes.

• Statistics: Bill.com processes over $100 billion in payments annually, with a growing user base in India.

Conclusion

Managing accounts payable and receivable is crucial for maintaining a healthy cash flow, particularly for SMEs that often face challenges with late payments and outstanding receivables. The right software solution can simplify these processes, ensuring businesses pay their vendors on time and collect payments promptly. With a variety of accounting software in India offering integrated AP and AR features, businesses can now manage their financials more effectively, improve cash flow, and foster better relationships with clients and suppliers.