#United States #Denver #BillingPlatform #AR Automation #Finance Executives

The Urgent Shift in Finance: Embracing AR Automation

In a recent survey conducted by BillingPlatform, a leading enterprise revenue lifecycle management platform, a striking 80% of finance executives identified accounts receivable (AR) automation as a critical priority for their organizations. Despite this acknowledgment, only 3% of surveyed companies have fully automated their AR processes. This discrepancy highlights both the urgency and the barriers faced in embracing automation solutions in finance.

Key Findings from the Survey

The survey, which took place in June 2025 and included insights from over 100 finance decision-makers across various industries such as manufacturing, healthcare, financial services, and IT, revealed significant trends and concerns regarding AR practices.

Growing Need for Automation

Among the respondents, 67% are assessing the potential of artificial intelligence (AI) in enhancing their AR operations. However, only 14% have integrated AI into their existing workflows. This trend indicates that while finance leaders recognize the importance of modernizing their systems, actual implementation of these technologies remains challenging.

Cash Flow Challenges

Finance executives reported that cash flow management and high Day Sales Outstanding (DSO) are among the top challenges stemming from inefficient AR operations. A notable 78% of respondents stated that poor cash flow was their most significant obstacle, leading to average DSOs ranging from 30 to 60 days. Many highlighted that improving DSO was the primary benefit of employing a customer payment portal, illustrating the direct link between automation and financial health.

Insights on AI Utilization

The survey revealed that the most common applications of AI currently under consideration include:

• - Collections Prioritization (60%): Helping organizations identify which accounts to focus on first for collections.
• - Dunning Optimization (59%): Streamlining how overdue payments are pursued.
• - Anomaly Detection (57%): Addressing errors in invoices before they become problems.

Despite these promising use cases, respondents also recognized major barriers to efficient reporting and analytics, such as reliance on manual processes (67%), insufficient predictive insights (48%), and fragmented data (40%).

Persistent Manual Effort

The reliance on manual workflows remains a significant obstacle throughout the AR lifecycle. Many companies indicated that they struggle with labor-intensive processes across invoicing (63%), collections (57%), payments (60%), and reporting (67%). This persistence of manual efforts emphasizes the critical necessity for automation to enhance operational efficiency and minimize reliance on resource-heavy procedures.

Automation Gaps in Payment Processing

Interestingly, while companies have begun to modernize their AR functions, payment processing continues to lag behind. Only 23% of businesses report that their payment processes are mostly or fully automated. Key reasons for switching providers include lower transaction costs (68%) and better integration with existing enterprise resource planning (ERP) or billing systems (52%). Furthermore, only 17% of companies currently support payments via digital wallets, underscoring a significant gap in payment innovation.

Conclusion

As Dennis Wall, CEO of BillingPlatform, aptly noted, the research exhibits the urgency for enterprises to integrate AR automation into their financial strategies. The manual challenges that finance teams face necessitate a transition towards more automated, intelligent solutions that can effectively improve operational efficiency, optimize cash flow, and foster long-term financial success. As organizations strive to modernize their AR practices, they must also overcome the barriers of budget constraints and IT backlogs to realize the benefits of automation fully.

For further insights and comprehensive statistics, the complete survey results are available in the 2025 State of AR Automation Survey report.