Much like neglecting a persistent toothache, procrastination can lead to more painful and costly consequences. Companies of all sizes face a parallel inflection in accounts receivable (AR) organizations when they take that same “deal-with-it-later approach” to digital innovation.
We’ve all been there.
You’re in an annual finance planning meeting, and the decision is made to slap a band-aid on the problem in lieu of more meaningful transformation. Maybe your IT team steps in to build an extra feature on top of your ERP platform that keeps your team going a bit longer. Or maybe you hire another temporary employee to cover increasing workloads. Perhaps you simply decide to “kick the can down the road” on that AR automation project.
It feels like forward movement, or at least you’ve bought some time.
But what do these decisions really cost you in the end?
The Status Quo Boomerang Effect is the concept of a recurring problem coming back to hit you twice as hard as it did the first time. In finance, CFOs see issues come spinning right back with a vengeance – whether it’s compounding payment delinquency or customer disputes reaching new all-time highs. Boomerangs typically multiply frustration, supersize waste, and amplify the strain on employee and customer relationships.
If you’re nodding, you’re not alone. This is a story we hear constantly from finance leaders at all organizations. The real danger is that these seemingly innocent decisions can have a big impact. Afterall, AR is considered one of the biggest levers controlling cash flow, financial health, and resilience during economic downturns.
Here’s how Billtrust cautions finance leaders.
Why “In-House” and “Later” are Really Costly Traps
“We’ll Just Do It In-House.”
This is the most common misnomer when companies need to digitally transform their AR practices. While internal IT teams can successfully manage ERP platform(s) housing raw financial data, they can’t always expand them with the features that AR teams need to move at today’s speeds. Home-grown solutions may help for a while, but they never quite deliver. In fact, many clients come to Billtrust after running up against the risks of an in-house approach.
These are the reasons home-grown fails.
ERPs aren’t Built for AR: It’s a Bigger Ask than you Might Realize
Tasking your IT team with building a comprehensive solution can be a significant distraction. ERP systems are great at managing broad financial workflows, but they fall short in many areas which leaves IT teams to take on more than anticipated.
55% of finance organizations can’t automate AR due to integration challenges.
- Integration is the biggest snag. To eliminate the most amount of manual work, AR automation solutions must connect mountains of siloed information, forming a highly integrated ecosystem. In solution development, this becomes the biggest hurdle of all. A study from an independent research firm found 55% of finance organizations cite integration as the most pressing issue preventing them from automating. For most, the decision to hire a system integrator or simply use out-of-the-box integration becomes the tipping point when deciding whether to build versus buy.
- ERPs weren’t designed for modern AR. When it comes to specialized AR needs like PCI DSS compliance, automated credit decisioning, and diverse payment methods ERP systems have AR gaps. Forcing your ERP to do a job it wasn’t built for isn’t always a cost-justified endeavor. Consider recent advances in AI automation and whether your IT gurus are leaders in the nuances of AI-driven cash application matching and Agentic AI for AR, much less B2B payment networks and eInvoicing standards. Another warning: If you have two or more ERPs, challenges can easily double and even triple.
- Management becomes too much. Overall cost advantages can be neutralized by the time and expense of technology management. Integrations must be managed on an ongoing basis. Features need to be updated. The in-house solution itself will need to evolve – especially when dealing with real-time data, frequent security policy updates, and changing regulations.
Get the guide to explore the 5 ways ERP systems fall short.
The Boomerang Effect: It’s not uncommon for a 6-month project to expand into 12-18 months, often with features trimmed. Project stalls and budget constraints are also common. By the time the home-built system goes live, it’s standardized on antiquated technologies and processes. In the end, the AR team is left with a clunky, partially effective tool. Ironically, financial leaders find themselves right back where they started, wondering if they should continue to build or buy a solution. See how Billtrust picks up where your ERP leaves off.
“We tried to do some things internally, but it just didn’t work out. If we home-grow a solution, it doesn’t improve unless we see where those improvements need to be made and we ask for them. Billtrust, however, is always improving their platform. Look at their roadmap. With Billtrust, everything’s always looked at and always moving further down the road. That’s a big, big plus for us.”
Brian Page, Director of Credit, 84 Lumber
Hear the 84 Lumber story
“We’ll Just Hire More AR Clerks and Look at Offshore Talent.”
Throwing more people at the problem is the second most frequent misstep in the journey toward digital AR innovation. At Billtrust, we call this the “more-hands pitfall.” Why? Hiring cheap labor can mask a whole bunch of hidden costs and business risks:
Direct Damage
- Training and onboarding slow progress while overhead costs rise
- Temps are more prone to turnover and offshore communications problems
- Savings are eaten up by rework, error correction, and vendor management
Indirect Damage
- Slow collections negatively impact working capital
- Misapplied cash from manual processes disrupt operations and forecasting
- Customers churn when it’s not easy to do business with you
The Boomerang Effect: AR performance remains stagnant while costs quietly inflate. Team efficiency is limited or even capped, and you still have a fundamental problem. Manual, error-prone processes don’t scale with business growth or allow for responsiveness in times of economic turbulence. The bottom line: you’re no further ahead.
The Cintas Story
When Cintas migrated from IBM’s AS/400 system to SAP, the AR team took a serious productivity hit. Finance leaders needed to ensure tech upgrades wouldn’t blow their budget. That’s when they paired Billtrust’s AR automation platform with their new SAP system and recognized roughly $1M in annual savings. “Our credit card team was growing rapidly. We were up to 16 people and implementing Billtrust allowed us to reduce from 16 to 2 people,” explained Kerry Banks, Cash Application Manager, Cintas. Hear the Cintas story
“We’re Going to Kick the Can Down the Road”
Many times, modernizing AR is on the list, but never quite makes it to the top of the priority list. Here’s the ugly truth: Unfortunately, finance has the reputation of being a back-office function. So, other priorities take precedence over improving invoice delivery or collections efficiency. Consequently, problems multiply while your competitors use the latest technologies to forge ahead.
Agentic AI is the next evolution of Generative AI, and it enables specialized virtual assistants to collaborate across the AR ecosystem. These technologies are evolving so quickly that procrastinators risk being left behind. Catching up will be nearly impossible because autonomous assistants aren’t on the horizon – they’re already here. Learn more here.
With AI evolving so quickly, catching up will be nearly impossible.
The Boomerang Effect: By the time AR issues cause a five-alarm fire, there could be severe damage to your financial health and competitive advantage. AR problems suddenly become a critical cash flow crunch or a barrier to growth, forcing a rushed, reactive, and usually much more expensive decision down the line that ultimately results in fewer outcomes and delayed returns.
The Solution? Build a Strong Business Case
Why do financial leaders make these decisions? Because the justification for investing in AR automation isn’t there. The true cost of the existing problem hasn’t been fully quantified. Therefore, CFOs can’t see the financial return.
Champions of AR innovation must unpack the ROI of an investment in AI automation software, calculating their cost of inaction by evaluating among other things:
- Lost productivity and efficiency
- Trends in AR performance metrics like Days Sales Outstanding (DSO) and Collections Effectiveness Index (CEI)
- Inaccuracies due to human error and manual procedures
- Unapplied cash sitting in suspended accounts
- Compliance risks and the cost of them
Those who both measure their AR performance internally and compare their metrics against industry benchmarks create a data-backed sense of urgency. Don’t miss this guide, which explains the best KPIs for evaluating AR effectiveness, accuracy, and efficiency. Download The 20 Best KPIs for AR: A Strategic Guide by Functional Area
How to Size Up Your Savings
Need help running some rough ROI numbers? After carrying out more than 6,000 AR digital transformations, Billtrust studied the results of our clients and used historical data to identify the average benefits achieved. These can serve as a rule of thumb for some “back of the napkin” math.
On average Billtrust clients achieve up to:
- 95%+ Cash App match rates
- 80% increase in productivity
- 50%+ improvement in Days Sales Outstanding (DSO)
- 50% increase in electronic invoice presentment (ePresentment or eDelivery)
- 30% reduction in payment processing costs and credit card costs
- 25% improvement in cash flow
Ask yourself: What is delaying AR automation costing your company every month in wasted hours, missed opportunities, or potential risks? What is the cost of delaying another year?
Don’t Let the Boomerang Double Your Difficulties
While manual processes and the status quo might feel safe, it’s more like a high-interest loan taken out against your working capital. You end up paying more and eroding financial agility over time. Challenging assumptions, focusing on the realities of home-grown systems, and quantifying the cost of the status quo can help anyone champion AR innovation with a compelling case. Data-backed proposals not only clarify where improvements are needed most; they empower teams to prioritize initiatives, measure ROI with sharper accuracy, and make more confident decisions.
When economic instability puts financial health at risk, modernization is the key to sustainability. Innovation leaders who define the impact of inaction and use it to challenge the status quo are often crowned the heroes of digital transformation.
Isn’t it time to stop the cycle? Transform your accounts receivable and find a real solution and partner in Billtrust. Request a free consultation.
