Bill.com is a solution for automating your accounts payable and receivables that integrates with cloud-based accounting software like QuickBooks. While Bill.com has some unique features, its competitors like Sourcery can offer a more dynamic and customizable solution that is tailored to your specific needs.
Here you’ll find information about these innovations for your accounting tools, including which one might be best for you.
Bill.com Features
Bill.com offers a wide range of features that help businesses effectively manage their accounts payable and receivable workflows. Here are some of the key features of Bill.com:
Accounts Payable Automation
Bill.com automates the accounts payable process by capturing invoices, digitizing them, and submitting them for approval. The process of automating accounts payable begins with capturing invoices by scanning or emailing them to a designated email address, then digitizing them and extracting the relevant information.
Bill.com has an “Inbox” that allows suppliers to electronically submit their invoices to a unique email address created by Bill.com.
Bill.com Inbox (Source: Bill.com)
When a supplier submits invoices to their Bill.com Inbox, the software automatically extracts the relevant data, including the invoice number, date, amount due, and payment due date. This information is used to create a digital record of the invoice that can be easily accessed and managed within the Bill.com platform.
Once an invoice is in the system, you can review and approve it for payment, set up payment schedules, and even send payments directly through the Bill.com platform. By automating this process, you can save time, reduce errors, and improve the efficiency of your accounts payable workflows.
Accounts Receivable Automation
Bill.com makes it easy to create invoices, with templates available or the ability to upload your own.
Sample invoice template on Bill.com (Source: Bill.com)
Once created, invoices can be sent electronically via email, and businesses can check their status in real time through Bill.com. Once an invoice is sent, Bill.com automates payment processing, allowing customers to make electronic payments via ACH or credit card, and providing businesses with real-time payment tracking.
Bill.com also lets you schedule recurring invoices that are automatically sent to customers on a regular basis. Additionally, customers with unpaid invoices can be sent automatic reminders, reducing the need for manual follow-up.
Document Management
With Bill.com, you can store and manage invoices, receipts, invoices, and other financial documents in one centralized location, making them easy to find and retrieve when needed. Bill.com’s document management feature supports electronic document storage and eliminates the need for paper documents, reducing manual work and improving efficiency.
Businesses can upload documents directly to Bill.com or save them by scanning and sending electronic invoices to a designated email address. Once uploaded or saved, documents are digitized, making them easy to find and retrieve using Bill.com’s advanced search capabilities.
Customizable Approval Workflows
Bill.com’s approval workflows can be customized to fit each business’ approval process, including multiple approval levels and specific rules for different document types. Specific users are assigned to approve invoices or receipts based on their role within the organization. For example, an invoice can be automatically sent to a manager for approval before being sent to the finance department for final approval. This allows businesses to maintain tight control over their approval process, ensuring that invoices and receipts are only paid after they have been approved by the appropriate parties.
Custom rules can also be set up within Bill.com approval workflows. These rules can be based on criteria such as invoice amount, vendor, or department, and can determine which users are responsible for approving specific invoices or receipts. For example, invoices exceeding a certain amount can be automatically sent to a senior manager for approval.
Creating an Invoice Approval Workflow in Bill.com (Source: Bill.com)
Approval workflows in Bill.com allow businesses to track the approval process in real time and receive notifications when invoices are approved. This gives businesses real-time visibility into their financial operations and helps ensure that invoices are paid on time.
Automatic Bill Codification
One of the best features of Bill.com is that it learns from past transactions, allowing the system to automatically assign the correct general ledger (GL) codes based on a company’s historical data. When invoices are entered into Bill.com, the system analyzes past transactions to identify patterns and establish rules for automatically coding invoices. For example, if a company consistently assigns a specific CL code to invoices from a particular supplier, the system will learn this pattern and automatically apply the same code to future invoices from that supplier.
The system also takes into account any changes made by the user to the CL codes during the approval process. If the user changes the GL code assigned by the system, it learns from that change and applies it to future invoices with similar criteria.
Automatic invoice coding saves time by eliminating the need for manual classification. It also reduces the risk of errors by ensuring that invoices are consistently classified and assigned the correct GL codes. Finally, it provides businesses with real-time visibility into their financial transactions, making it easier to track expenses and analyze spending patterns.
Reporting & Analytics
With Bill.com, you can create custom reports based on specific criteria, such as vendor, expense category, or project. Reports can be generated in a variety of formats, including PDF, CSV, and Excel, and can be easily exported to accounting software or shared with stakeholders.
In addition to generating reports, Bill.com provides businesses with a dashboard that displays key financial metrics, such as cash flow, outstanding invoices, and accounts payable. The dashboard also offers visual representations of data, such as graphs, making it easier for businesses to identify trends and patterns in their financial data.
What to Look for in AP/AR Solutions
An automated accounting solution can help you streamline your administrative processes. It’s a way to collect payments faster and manage accounts more efficiently. However, there are a wide variety of solutions to choose from. Some, like Bill.com, focus almost exclusively on digital invoicing, automated payments, and account reconciliation.
Others, like Sourcery, are comprehensive solutions that include vendor management as well as efficient invoicing and automated reconciliation. Specifically designed for the restaurant industry and small startups, Sourcery has specialized order and inventory management capabilities that Bill.com doesn’t offer.
When looking for the right platform, you may need to decide whether you need just an invoicing tool or a comprehensive account management solution.
Bill.com Overview and Features
As the name suggests, Bill.com’s main function is to facilitate domestic and international payments. It covers all aspects of accounts payable, including electronic invoicing and various payment options.
With Bill.com, you can receive digital invoices from suppliers and get quick approval. You can also create and send invoices to your customers and receive payments via ACH, ePayment, PayPal, or credit card. The platform easily syncs with leading accounting software, such as Oracle, Xero, QuickBooks, and Sage.
Bill.com Reviews and Pricing
Bill.com generally has positive reviews. Users appreciate the automated features and ease of payment approval. Some Capterra users noted that the preview window could be improved. Others noted sync issues and limitations in the rules. PC Mag noted that it doesn’t work as a double-entry system and therefore can seem lacking in features. However, the magazine emphasized that Bill.com does not claim to include all the features of other solutions.
Some users on G2crowd have reported frequent errors when syncing with accounting software. A recent reviewer complained about poor customer service, as they had an unresolved account issue and did not receive a response from Bill.com’s chat support service, and were instead offered the option to call the company. Overall, Bill.com has a good reputation, but some users have expressed dissatisfaction with the additional cost of additional features, such as automatic invoice entry.
Pricing plans range from $29 to $59 per user per month, with the latter being the most popular. The platform also charges $19 for a “verifying” user. Additional transaction fees include $0.49 for electronic payments, $0.49 for auto-entering per invoice, $0.99 for PayPal payments, and $9.99 to $19.99 for quick payments.
Sourcery Overview and Features
While Bill.com focuses on payments, Sourcery offers a wide range of benefits for restaurants and small businesses. These include automated invoicing, online payments, internal ACH transfers, and domestic and international check processing. It integrates with Xero, QuickBooks, Sage, and other major software.
Sourcery offers powerful vendor management capabilities that enable online ordering. The software is designed for food businesses that often need to amend invoices or issue credit notes due to spoiled food upon delivery. With Sourcery, these changes are simple and seamless. The platform facilitates rapid communication with suppliers, eliminating time wasted on outdated, manual ordering processes.
Furthermore, the automatic digitization of invoices creates valuable data. Restaurants gain significant insight into their costs. The platform has a price alert feature that allows owners to better track their spending on perishables. With this functionality, Sourcery can help customers make important business decisions and keep their accounts up to date.
Sourcery has a strong customer support team. Each Sourcery customer has a dedicated account manager who will help with any issues. The support team provides personalized attention to each user so that customers can fully utilize the product’s features.
How to Choose the Best Option
To choose the solution that best suits your needs, it will be helpful to review the main advantages and disadvantages of each platform.
Bill.com
- Pros: Bill.com is exceptionally good at automating invoicing and making payments easy. Approval processes are straightforward. The platform offers a wide range of international payment options.
- Cons: The subscription is for a single user, and there are additional transaction fees. Some users have complained that Bill.com’s integration with their accounting software isn’t as seamless as they would like. Others have complained about the lack of customer support.
Sourcery
- Pros: Sourcery is designed specifically for restaurant owners. It offers powerful inventory and price analysis so owners can monitor costs. It provides invoice digitization, similar to Bill.com, and also includes payment options. Its direct ordering feature makes it easy to interact with suppliers. Customer service and price predictability round out this platform’s strengths.
- Cons: Since it doesn’t specifically focus on accounts payable management, it can take a while to get to grips with all of its features.
Perhaps the best way to determine the right platform for your business is to try them out. Contact Sourcery today and request a free demo to see if the product can help improve your business’s efficiency and success.
