Study Finds Accounts Receivable Automation Accelerates Cash Flow for Business Services Companies

Anyone in business or professional services will tell you: service excellence doesn’t always mean collections excellence. In fact, with nearly 50% of all B2B invoices in the U.S. currently overdue, it can be argued that late payments have become the new normal.

CFOs find themselves navigating a slippery slope of delays, disputes, and bad debt all while trying to keep operations running smoothly and invest in growth.

If receivables don’t move quickly, neither does the business. This is no small feat given the economic backdrop defining the transition into 2026:

• The economy is shakier: 60% of CFOs believe a recession is likely over the next year, according to the benchmark study on 2025’s economic impact.
• Bad debt is piling up: 61% of businesses carry revolving credit card balances, and 63% use cards for operating expenses versus emergencies. Furthermore, younger generations are forcing a digital payment revolution with most relying on Buy-Now-Pay-Later (BNPL) offers. That can mean higher chances of delinquency and defaults for service providers, particularly as economic times get tougher.
• Buyers are pushing back: The largest U.S. companies are trying to push out their payment timelines – a standard practice for optimizing working capital that can make it more difficult for services providers to improve their cash flow.

In a market where even strong companies are feeling the strain, tighter financial management isn’t just smart – it’s the essential strategy for 2026. That’s why more organizations are turning to accounts receivable (AR) software automation in business services to break the cycle. According to a comprehensive survey by independent research firm Vanson Bourne, 74% of companies in business and professional services report that AR automation software accelerates cash flow. Nearly 90% see clear value in their AR software, and about 70% say it has delivered on ROI expectations.

Let’s dive into where AR automation is making the biggest impact in this sector, and where there’s still untapped potential.

3 Areas Where Accounts Receivable Software In Business Services is Delivering the Most Value

The study uncovered three key areas where AR automation is helping companies sharpen performance and strengthen financial health.

1. Governance and Compliance: Smarter, Safer Receivables

About 40% of service providers report that AR software helps them stay ahead of regulatory demands by standardizing and enforcing governance policies throughout the receivables process. With compliance demands rising and more businesses facing surprise audits, this is a critical advantage.

Did you know that the U.S. Government just made digital transactions the new standard? Get an update on global financial regulations here.

2. Invoice Processing: 14-day Reduction in DSO

About 34% of service providers point to faster invoice processing as one of the biggest gains from AR automation. When invoices go out faster (and with fewer errors), payments come in quicker – by an average of 14 days, the survey found. Payment velocity is a key tactic CFOs are using to offset the negative impacts of today’s economic headwinds. Here’s a guide to building financial stability in turbulent times.

Service providers reduce Days Sales Outstanding (DSO) by 14 days with AR automation tools.

3. Payment Policies: Reducing Costs, Enhancing Control

Optimizing payment processing fees and policies is another major value driver, cited by 40% of service providers. Automation doesn’t just help companies collect faster. It helps them collect smarter by:

• Incentivizing early payments and discouraging late payments
• Lowering credit card processing costs
• Minimizing leakage and ensuring that cash application and collections activities are more efficient

How Professional Services Companies Are Transforming AR

Companies don’t get ahead by doing the same thing they’ve always done. If you’re not modernizing, you’re not optimizing. Today’s CFOs are expected to bring a variety of strategies that drive innovation and growth – think fresh new technologies as well as proactive, offensive, and defensive moves. The survey highlights two key areas of focus:

Automation: From Strategy to Process

AI automation, including new Agentic AI virtual assistants, unlock the speed to move capital faster by eliminating manual work. Just over half of organizations in business and professional services say AR automation significantly accelerates payments – indicating progress, yet still plenty of ground to cover.

+50% say AR automation significantly accelerates payments

Those who are already winning with automation should build on that momentum by tapping into data across systems, departments, and external resources to start gaining actionable insights. Predictive analytics that tap into your buyers’ behaviors can flag recurring late payers, highlight payment patterns, and surface early signs of revenue leakage. These insights become even more powerful when paired with machine learning and optical character recognition (OCR), which help match and reconcile unstructured data at scale. This is crucial for any advanced automation strategy and for staying ahead of any macroeconomic trends playing out in your customer portfolio.

Buyer behavior analytics highlight payment patterns and surface early signs of revenue leakage, so you can stay ahead of macroeconomic trends playing out in your customer portfolio.

Digital Invoicing: Gaining Traction, but Not Yet Cruising

Your easiest cash flow hack: Going paperless by switching to electronic invoices and digital payments. Most customers prefer it, and it’s proven to speed up payments with less (if any) errors and at a lower operational cost. Around 58% of companies in the business and professional services sector have moved from print to digital invoicing, but there is still room to grow. If your organization is not yet pushing for full ePresentment and ePayments, you’re part of a steadily shrinking minority.

Your easiest cash flow hack: Going paperless by switching to electronic invoices and digital payments.

AI Drives AR Automation from Efficiency to Autonomy

With nearly 80% of companies crediting AI as the thing to catapult cash flow, it’s clear that technology is one of the smartest investments finance leaders can make. Research shows CFOs are still prioritizing AI investments – despite new budget cuts and economic concerns with some dedicating 10% of their funds to AR automation.

But with so many types of AI (each with varying degrees of impact on AR) it’s critical to understand where the best value lies. The biggest gains are happening with more advanced AI capabilities – specifically, Agentic AI.

Agentic AI is the next evolution of Generative AI (GenAI) that introduces virtual assistants – or “agents” – that can learn, adapt, and act completely on their own.

• It leverages behavioral data to recommend the optimal timing and tone for collections outreach.
• It scans email inboxes to organize messages and draft responses, responding to customers and resolving disputes much faster.
• An embedded intelligence layer learns which clients respond better to certain communication channels and tailors outreach accordingly.

Analysts expect major investment over the next few years, making this a critical focus for forward-thinking finance leaders. If you want to better understand how Agentic AI works and what it means for finance, read our latest guide.