Money tied up in accounts receivable is a major pain point for many businesses — and you're probably dealing with it too. AR teams spend hours chasing payments, matching transactions, and managing invoices manually, while cash flow gets tighter and tighter. But there's good news: AR process automation is changing the game for companies that want to get paid faster.

The numbers tell an interesting story. The market for AR automation has grown to $3.5B in 2023, and it's just getting started. But here's what's really surprising: while 37% of large companies have automated at least half their AR processes, only 5% of mid-market businesses have fully automated systems. That means a lot of companies are still doing things the hard way.

We'll show you how AR automation can transform your financial operations, from cutting down manual tasks to getting payments faster. And if you're worried about implementation or costs — don't be. Modern solutions are different from what you might expect, and they're getting better and more accessible. Let's look at how this technology can help your business save both time and money, starting today.

What Is AR Process Automation?

Let's start with the basics: AR automation uses digital tech to make your accounts receivable run better. It's pretty simple — instead of your team spending hours on invoices and chasing payments, software handles it for you. And we're talking about everything from creating invoices to matching payments and keeping track of who owes what.

Key Parts of AR Automation

When you're looking at AR automation, there are a few main pieces that work together to make your life easier:

• Invoice systems that turn sales contracts into accurate bills (and you don't have to double-check them)
• Smart payment matching that figures out which customer paid what
• Automated reminders that follow up on late payments to improve collection periods (so you don't have to write those awkward emails)
• Real-time dashboards that show you exactly how your AR is doing

How It Works with Your Current Systems

Here's something that's really good to know — AR automation doesn't mean throwing out all your current software. It works right alongside your ERP and CRM systems, which is probably a relief if you've invested time and money in those tools.

When everything's connected, your data stays consistent across all your systems. You can see your whole financial picture in one place, and you don't have to keep entering the same information over and over. That's a huge time-saver for your team.

The Role of AI and RPA in AR Automation

AI and RPA are making AR processes work in ways that just weren't possible before. If you're running a business and dealing with financial operations, these technologies can make a big difference in how your team works.

What AI Brings to the Table

AI is doing some pretty impressive things in AR:

It processes huge amounts of data fast — way faster than any human could. This means you get real-time info about your finances without the wait.

The smart part? AI can actually predict when customers might pay late, so you can be proactive about collections. And if customers have questions about their invoices, AI chatbots can help them right away, which means your team doesn't have to stop what they're doing to answer basic questions.

How RPA Makes Things Easier

RPA is different from AI but just as helpful. It's great at handling those repetitive tasks that eat up so much of your team's time.

It takes care of entering data, creating invoices, and matching payments automatically. Your team can focus on more important work instead of copying and pasting all day.

And here's what's really great — RPA connects with the systems you already use, so you don't need to change everything about how you work. Plus, since machines don't get tired or distracted, you get fewer errors in your billing and collections.

Benefits of AR Process Automation

Let's talk about what automation can really do for your AR team. The numbers are pretty impressive — 85% of finance teams say they're getting work done faster with automation. And it makes sense when you think about it. Here’s what you get:

1. Improved Efficiency and Time Savings

You probably know how it goes — your team spends hours entering data, creating invoices, and tracking payments. It's a bit tedious, and there's always more to do. But here's where automation changes things: all those routine tasks just happen automatically.

Think about what your team could do with that extra time. Instead of copying data between systems, they can work on bigger projects that actually grow your business. And the best part? The system works 24/7, so invoices go out right after a sale, and you don't have to wait for someone to process them manually.

The automation helps in a few key ways:

• Turns sales contracts into invoices automatically
• Sends payment reminders without anyone having to write emails
• Keeps track of who's paid and who hasn't
• Shows you exactly how your cash flow looks right now

2. Fewer Mistakes, Better Results

Here's something that might sound familiar — a small typo leads to an invoice being wrong, and then you have to spend time fixing it and dealing with an unhappy customer. Well, 63% of CFOs say automation helped them cut down on these kinds of mistakes.

When everything's automated, you get:

• Consistent, accurate data across all your systems
• Invoices that match your sales contracts exactly
• Better relationships with customers (because they're not getting incorrect bills)

And you know what happens when customers get accurate invoices on time? They tend to pay faster. It's good for them because they don't have to deal with confusion, and it's great for you because you get paid sooner.

The whole thing just works better — your team isn't stressed about keeping up with paperwork, your customers are happier, and your business has more predictable cash flow forecasting. That's probably why so many companies are moving in this direction.

3. Better Cash Flow with Smart Collection Strategies

Let's talk about something that really matters — getting paid faster. The numbers tell a pretty amazing story here. Companies that automate more than half their AR processes see some great results. We're talking about 32% faster collections on average.

And here's something really interesting — businesses using automation get paid in about 40 days, while others wait around 47 days. That's a whole week of difference in your cash flow.

What Makes This Work So Well?

When you can see your cash flow in real time, you're in a much better position to make good decisions. It's like having a dashboard that shows you exactly where your money is at any moment. And the automated system keeps track of everything:

• When invoices go out
• Which customers have paid
• Who might need a little reminder
• How much money is coming in next week

It also speeds up the payment process. This is where it gets really good. The system sends out reminders automatically, but in a way that actually works:

• Invoices go out right after the work is done
• Payment reminders show up exactly when they should
• Follow-ups happen without your team having to think about it

4. Making Your Customer Relationships Even Better

You might worry that automated reminders could feel a bit cold or robotic. But actually, they can make your customer relationships even stronger. The whole process becomes more predictable and professional — your customers get their invoices when they expect them, receive friendly reminders that help them stay on track, and don't have to deal with any surprises.

The system is intelligent with handling communications too. It sends messages that feel personal and friendly, keeps track of each customer's payment history, and adjusts the timing based on what works best. And your team can focus on actually helping customers instead of chasing payments all day. It's good for everyone — you get paid faster, and your customers get a better experience.

5. Getting More Financial Insights with Better Tools

When you're running a business, having good financial data at your fingertips makes all the difference. AR automation puts everything in one place, so you can see exactly what's happening with your money. And the results can be pretty amazing — one company managed to cut their AR costs by 50% just by using AI and automation for their everyday tasks.

Making Better Decisions with Real-Time Data

It's tough when you have to wait days or weeks to know how your cash flow looks. But with centralized tools, you can see everything as it happens. Your team gets a clear view of who's paid, who hasn't, and what payments are coming up next.

Here's what makes these tools so valuable:

• Real-time updates on cash flow and payments
• Quick alerts if something needs attention
• Easy-to-read reports that actually make sense
• Custom views for different team members
• Automatic tracking of key financial metrics
• Simple ways to spot payment trends

6. The Money Side of Things

Let's talk about the bottom line. Businesses using AR automation can see up to 390% ROI (and we previously covered AR automation ROI in details). You're spending less on paper, postage, and manual work, and your team can focus on more important tasks.

This all adds up to better financial health. You'll probably notice the difference within a year — maybe even sooner. Your team spends less time chasing paperwork and more time on work that actually grows your business. And since you're collecting payments faster, you'll have more cash on hand when you need it.

What to Consider Before Getting Started with AR Automation?

Let's be honest — switching to AR automation isn't always simple. There are some things you'll want to think about before jumping in, and that's totally normal for any big change in how your business handles money.

Looking at the Costs

The money side of things can feel a bit tricky at first. You're looking at:

• Software costs and licenses
• Getting everything set up and working
• Training your team on the new system
• Making sure it works with your current tools
• Keeping your data safe and secure

But here's the good thing — this initial investment tends to pay off pretty quickly. Your team spends less time on paperwork, you get paid faster, and you make fewer expensive mistakes. It's just important to look at both sides of the equation when you're making your decision.

Making Everything Work Together

Getting new software to play nice with your current systems can be a bit of a challenge. You might have some older systems that don't connect easily, or custom processes that need special attention. That's why it's so important to work with a provider who can adjust their solution to fit how your business actually works, rather than forcing you to change everything about how you operate.

Keeping Your Data Safe

When you're dealing with money and customer information, security is a big deal. Some companies worry about putting financial data in the cloud, and that makes sense. But modern AR systems usually have really good security built in — you just need to make sure your provider has the right certifications and follows all the rules for your industry.

Getting Your Team On Board

Sometimes the hardest part isn't the technology — it's helping your team feel good about the change. They might worry about what automation means for their jobs, or they might just really like how things work now. That's why good training and support are essential.

Your team needs to see how the new system will make their jobs better, not just different. When people can focus on more interesting work instead of copying data between systems all day, they usually end up more satisfied with the change.

The key is to plan things out carefully and work with a provider who gets your business. When you do that, these challenges become a lot more manageable, and you can focus on the good parts of having a more automated AR process.

Final Thoughts: Is AR Automation Right for Your Business?

We've covered a lot about AR automation, from the basics to the benefits and challenges. And here's what it really comes down to: if your AR team is spending hours on manual tasks, there's probably a better way.

The numbers tell an interesting story. Companies using automation are getting paid a week faster on average, seeing fewer errors in their invoicing, and freeing up their teams for more valuable work. But maybe the most telling part is that 85% of finance teams say automation has made their work more efficient.

Fazeshift's approach is a bit different from traditional AR solutions. Instead of replacing your entire system, it works with what you already have — whether that's Salesforce, NetSuite, or other tools your team uses every day. The AI handles the tedious stuff like matching payments and tracking invoices, while your team focuses on what really matters.

If you're running a mid-market or enterprise business with a 5-25 person AR team, and you're tired of manual processes slowing everything down, it might be worth seeing how automation could help.

Ready to See How It Works?

Book a demo with Fazeshift's team to see how AR automation could work for your business.