Manual data entry is one of the biggest bottlenecks in the order-to-cash (O2C) process, slowing down everything from invoice processing to cash collection. To overcome this, finance teams are turning to accounts receivable (AR) automation tools that replace tedious, manual tasks with intelligent workflows. These tools use automated data capture and centralized visibility to streamline every step of the process, empowering AR clerks and collectors to work faster, reduce errors, and keep revenue moving. Below are the key features and capabilities that help minimize manual data entry for greater efficiency in AR operations.
- AR automation software that integrates directly with your ERP, eliminating duplicate entry and ensuring data exchange happens seamlessly between invoicing, payments, cash application, collections, credit management, and financial reporting.
- AI and machine learning that read payment and invoice data automatically, streamline exception handling, and continuously improve match rates and accuracy over time.
- A holistic AR platform that automates every step of the O2C process – connecting invoicing, payments, cash application, and collections in one unified system.
Let’s walk through the situation today and the best AR automation tools for reducing manual data entry.
Why should I try to reduce manual data entry in accounts receivable?
Hand-operated procedures are the root cause of financial inefficacies that lead to a direct threat to working capital. A busy day at work is often viewed as a productive one, but this isn’t always the case in the finance department. Clerks and collections specialists can spend hours copying and pasting, toggling tabs, and bouncing between systems and still somehow be stagnant. The problem isn’t effort – it’s the type of work being done. Labor-intensive processes keep teams busy but not productive.
For instance, collectors can waste 8 minutes or more on every email. According to PYMNTS’ research, 81% of businesses need to contact customers between one and four times to secure payment for a single overdue invoice. That’s a major productivity drain for those handling each touchpoint manually.
How Payment Errors Put Business Growth on Hold
Manual work: The impact on financial stability
The impact of manual work becomes apparent when you look at AR challenges: One quarter of CFOs say their AR teams are months behind on invoice processing. Other research shows more than 50% of companies struggle with managing payments due to manual processes. Recent trends also show bad debt is rising, with some doubling their write-offs year-over-year.
+50% of AR teams struggle to manage payments due to manual processes
This is where automation steps in as a solution.
Key Benefits of AR software
Productivity gains from AR automation tools
When AR automation software addresses the entire O2C, financial operations accelerate significantly. According to research from Vanson Bourne:
- 95% of organizations report higher efficiency
- 92% experience faster cash flow
- Nearly half have reduced key metrics like Days Sales Outstanding (DSO) and Days to Pay (DTP)
- Roughly 40% have reduced payment processing fees and improved compliance, governance, and invoicing speed
- 92% agree automation helps mitigate financial risk and enhance customer satisfaction
- 93% confirm they’ve achieved their expected ROI
This helps explain why forward-thinking finance leaders are investing in advanced technology to reduce manual inefficiencies and trade data entry work for real-time visibility and control over cash flow.
How does ERP integration reduce manual data entry, including for multi-ERP environments?
More than half of finance teams say ERP integration is one of the biggest barriers to full AR automation. When systems can’t talk to each other, AR teams have to fill in the blanks: keying data into multiple platforms, double-checking reports, and reconciling discrepancies by hand. It’s tedious, error-prone work that only gets harder in multi-ERP environments. Whether it’s the result of acquisitions or different departments running on their own homegrown systems, every ERP comes with its own quirks, data formats, and rules. That means more manual work to handle unstructured data, less visibility, and slower reporting – all affecting cash flow.
When your AR automation system connects directly with your ERP, that all changes. Accurate, real-time data for customer records, invoices, and payment terms flows straight from your ERP into a unified platform for centralized management across every stage in the O2C process. Invoices are created and delivered instantly, payments are captured and applied, exceptions are flagged, and updates flow right back into your ERP as clean, structured data. No re-keying. No file transfers. No endless reconciliations. Your team gets one continuous data stream that keeps operations smoothly in sync.
Organizations like Cintas are seeing the difference
By integrating Billtrust with their ERP, they experienced productivity gains equivalent to 14 full-time employees while saving over $1M every year.
How can AI and machine learning reduce manual data entry errors in AR?
Whereas automation eliminates manual steps, AI eliminates uncertainty. Organizations that fully adopt AI are nearly 20% more satisfied with their AR automation tools and achieve larger DSO and DTP reductions than those that haven’t.
Here’s how:
AI-automated data capture reads, extracts, and classifies remittance information – even if complex or incomplete – using machine learning (ML) and optical character recognition (OCR). Instead of re-keying or cleaning data, teams receive structured, accurate information ready for payment posting and cash application. Learn more about fixing cash application problems.
A digital lockbox complements AI by handling the up-front work, capturing and consolidating payment and remittance data from every payment channel (ACH, check, or virtual card) and preparing it for analysis. See how Billtrust’s Digital Lockbox works.
Confidence-based, ML-driven cash application analyzes each payment and assigns a confidence score indicating how accurate the system is in matching the remittance against the right invoice. You set the confidence threshold – in other words, you control the volume of payments that get auto-applied versus what gets reviewed by a human. The best feature? The system continuously learns from every transaction, improving accuracy over time.
AI monitors payment behavior and detects anomalies by tracking how, when, and how much customers pay. AR team members don’t have to worry about keeping up with changing trends. The system flags irregularities like missed remittances or unexpected deductions before they impact reporting or forecasting, helping finance teams act proactively instead of reactively.
AI anticipates risk before it becomes reality. By analyzing historical data and behavioral patterns, it identifies which customers are likely to pay late or which payments may be delayed. Rather than generating analytics reports, teams can prioritize outreach, focus on high-risk accounts, and protect cash flow before issues surface. See how agentic AI is reinventing enterprise decision-making.
Together, these capabilities give finance leaders something manual processes can’t: continuous intelligence. Every transaction, every behavior, and every exception becomes fuel for smarter, faster, and more accurate decision-making.
How do I choose the right AR automation tool if I want to reduce manual data entry?
Not all AR automation tools are created equal. Some handle only one piece of the puzzle – like cash application or invoice generation – while others offer end-to-end coverage. The right choice depends on where manual work is hitting your team hardest and what you need the technology to accomplish.
Key considerations
- Start with integration capability. If your AR tool can’t connect seamlessly with your ERP, banking systems, and your clients accounts payable portals you’ll still be doing manual work, just in different places. Look for platforms with pre-built connectors for your systems, especially if you’re operating in a multi-ERP environment.
- Prioritize AI that learns, not just automates. Basic automation follows rules. AI-powered automation gets smarter over time. Look for tools that use machine learning to improve match rates, predict payment behavior, and handle exceptions with increasing accuracy. Don’t be afraid to ask: “How does your system improve after six months of use?”
- Evaluate scalability for your company size. A solution built for enterprise operations might be overkill for a mid-market business – and vice versa. Consider your transaction volume, number of customers, and growth trajectory. Can the platform handle your needs today and scale with your growth tomorrow?
- Look for a unified platform, not point solutions. Stitching together separate tools for invoicing, payments, cash application, and collections creates new integration headaches. A holistic AR platform connects these processes in one system, eliminating the gaps where manual work typically lives.
- Measure real-world impact, not just features. Case studies and ROI data matter more than feature checklists. Look for proof that the provider has helped similar organizations reduce DSO, improve cash flow, and improve a variety of key performance metrics for AR teams.
At the end of the day, choose a platform that reduces manual data entry today while positioning your team for continued improvement through AI intelligence – not one that simply shifts the manual burden somewhere else.
How does an AR automation platform reduce manual data entry and improve outcomes across the order-to-cash process?
Disconnected systems force people to fill the gaps. A holistic AR automation platform closes those gaps entirely through centralized data orchestration. Everything from invoicing and payments to cash application and collections is brought into one continuous, intelligent workflow.
The moment an invoice is created, payment tracking begins automatically. When payments clear, they’re applied instantly and reflected in your ERP. Collections dashboards update in real-time, providing a complete and accurate view of cash flow without waiting for manual reports or reconciliations. Finance teams work from a single source of truth across the entire AR lifecycle – removing repetitive tasks, reducing risk, and accelerating every transaction.
Here’s how automation works at every O2C step:
- eInvoicing automation creates invoices directly from ERP data, formatted to each customer’s requirements and sent via preferred delivery methods – including submitting invoices to clients’ accounts payable (AP) portals.
- Payment automation expands the types of payments accepted, creating customized payment policies, reducing the cost of payment processing, as well as capturing all the right information across ACH, card, and virtual card channels.
- Cash application automation uses AI, ML, and OCR to read remittance data and match payments to invoices in seconds – even partial information or complex ones where data is received in two separate emails, for instance.
- Collections automation prioritizes overdue accounts, enables personalized outreach at scale, and tracks payment commitments automatically.
- Compliance automation maintains tax, PCI DSS, and global e-invoicing compliance without manual oversight.
These capabilities are all in one solution to replace repetitive, manual work with connected intelligence. AR teams spend less time pushing paper and more time strategizing, supporting customers, and driving financial performance.
Why Billtrust Leads the Way
There’s no shortage of AR automation tools on the market, but few deliver the scale, AI intelligence, and real-world impact that Billtrust does. Our experts have guided thousands of finance digital transformations, helping AR teams reduce manual data entry while delivering measurable ROI. Our clients’ productivity gains are off the charts with a 384% ROI. You can explore it and more in this study of Billtrust’s client results performed by analyst firm IDC.
- Direct ERP integration eliminates manual work, duplication, and reconciliation. Billtrust has support for 40+connectors to ERPs, banks, and financial institutions and 260+ direct AP portal integrations.
- AI and ML continuously learn from your data to improve accuracy, speed, and match rates over time. Billtrust’s advanced AI models include generative AI, agentic AI, and an AI engine built on the industry’s largest data network.
- Built-in intelligence analyzes, predicts, and accelerates every stage of cash flow. Billtrust harnesses groundbreaking AI capabilities help AR teams work 10x faster.
- A truly unified AR platform automates and optimizes every AR activity from end-to-end. It’s one source of truth for all your AR data and one platform where all AR employees have visibility into what their co-workers are doing.
Do less and get paid faster. Schedule a demo to see how Billtrust’s AR automation reduces manual work and improves cash flow.
