Embracing an automated approach to accounts receivable (AR) can pay off in spades for chief financial officers (CFOs) and treasurers.
“Manual AR processes can take a lot of time,” R.J. Ancona, VP and GM, B2B product, partnerships and client management of merchant services at American Express, told PYMNTS. “They take a lot of resources, and they’re often prone to mistakes.”
“Suppliers today manage a high volume of inbound payments from various payment methods,” he added.
When finance leaders rely on legacy processes, “it can be hard to get the full picture of how money is accessible and how much is outstanding from buyers,” he said.
In today’s rapidly evolving financial landscape, CFOs and treasurers face mounting pressure to maintain visibility and control over their cash flow, making it necessary to avoid the inefficiencies, errors and delays typically associated with manual processes that can hinder financial decision-making.
To address these challenges, financial leaders are turning to automation and advanced technologies to streamline AR processes and enhance visibility.
With the complexity and volume of payments that businesses handle today, gaining a clear view of their AR is critical. Without visibility into AR processes, finance teams struggle to accurately assess their cash position, which affects their ability to make timely, strategic decisions.
Automated AR solutions help bring these elements into focus, giving CFOs and treasurers the tools they need to optimize cash flow management, minimize risk and plan for growth, Ancona said.
“Visibility into the accounts receivable process brings clarity, helping to improve cash flow and, ultimately, the bottom line,” he said.
Automation not only reduces the manual burden on finance teams but also helps ensure that data is captured and processed accurately, providing real-time visibility into outstanding payments and cash flow status. This shift enables CFOs and treasurers to make data-driven decisions based on access to real-time data. This visibility works to enable an environment where businesses are not only reacting to financial challenges but also focusing on and planning for strategic initiatives rather than getting caught up in administrative tasks.
“Finance teams, CFOs and treasurers alike use AR insights to make strategic decisions,” Ancona said, adding that continuous updates and insights allow CFOs and treasurers to understand their financial position at any given moment. “It helps them choose the best partners, reduce costs and scale with confidence when implementing new initiatives.”
Beyond operational efficiencies, enhanced visibility into AR processes has a direct impact on customer relationship management. Real-time AR systems reveal important data, such as late payments or unresolved disputes, that can strain relationships between buyers and suppliers if not managed promptly.
“Delays and disputes are common in buyer-supplier relationships,” Ancona said. “Automation provides peace of mind by offering real-time insight into working capital, enabling suppliers to build stronger relationships with their customers.”
By resolving payment disputes quickly and providing more transparency, automated AR solutions foster trust and loyalty between businesses and their customers. Finance leaders can use these tools to strengthen customer relationships, leading to better long-term partnerships and reduced friction in payment processes.
Automated AR solutions adoption is expected to accelerate as digital finance innovation evolves. CFOs and treasurers are increasingly seeking out solutions that provide visibility while integrating seamlessly into their existing financial ecosystems. The future lies in modular and centralized AR systems that allow businesses to scale their automation capabilities incrementally, Ancona said.
“We are seeing real-time data and transaction reports becoming the norm, along with more tools to track and manage AR payments more efficiently,” he said.
By adopting modular solutions, businesses can choose specific components of AR automation that address their unique challenges, ultimately centralizing their AR processes in a way that enables efficiency and control, he said.
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