The role of accounts receivable (AR) is undergoing a dramatic shift. Once seen as a transactional, back-office function, AR is becoming a strategic, insight-driven powerhouse. So, what’s driving this transformation? And how should your AR team evolve to prepare for the future?
In our recent webinar “Building Modern Teams,” speaker Mark Brousseau, President of consulting services firm Brousseau and Associates, shared a clear roadmap. This recap distills his insights for building a future-ready AR team — one that doesn’t just focus on technology, but the mindset changes and leadership pivots necessary for meaningful transformation.
Four Forces Reshaping Accounts Receivable
First, it’s important to understand the landscape. The world of AR is at a critical tipping point, where four forces are reshaping the role of AR professionals and how AR teams operate:
1. CFO Pressure and Market Volatility
Gone are the days when AR was seen as a simple cost center. Today, finance leaders of mid- and large-size enterprises expect AR to be a strategic enabler that provides real-time insights for decision-making, improves cash forecasting accuracy, and elevates customer satisfaction. This requires a more data-driven and collaborative approach.
2. The Rise of AI and Automation
Manual tasks are a drag on efficiency. AI automation is now a practical tool for transforming AR operations from invoicing and B2B payments to touchless cash application and faster collections. This technology frees up AR teams from repetitive work to focus on higher-value analytical and strategic tasks.
“AI and automation shifts our AR teams from being data entry clerks to data analysts. It also helps drive their careers forward.”
Mark Brousseau, President, Brousseau and Associates
3. The Realities of Hybrid Work
The move toward hybrid and remote work is here to stay, but it presents challenges like communication gaps and limited visibility. To succeed, modern AR teams need secure, cloud-based technologies that enable real-time collaboration for dispersed teams.
4. Shifting Workforce Expectations
Today’s employees expect flexibility, purpose, and career development. To attract and retain top talent, AR leaders must provide modern, intuitive tools and shift the focus of AR roles from transactional data entry to strategic data analysis and customer relationship building.
Your Modernization Blueprint: A 3-Pillar Strategy
These forces are not just challenges; they’re drivers of transformation and change. While understanding them is essential, the real value lies in leveraging them to gain a competitive edge. This marks the starting point of your blueprint for building a future-ready AR team. The strategy is anchored on three fundamental pillars: People, Processes, and Technology.
“Accounts receivable must be a first mover in the organization, not a follower.”
Mark Brousseau, President, Brousseau and Associates
1. Empower Your People: From Processors to Analysts
The single most significant shift for AR professionals is the move away from manual, repetitive tasks toward analytical and strategic work. As automation handles data entry and reconciliation, your team’s value comes from their ability to interpret data, model scenarios, handle complex challenges, and build stronger relationships with buyers.
Your Action Plan:
- Upskill AR Staff for the Future: Invest in training that boosts tech fluency, data analysis, and customer experience skills.
- Develop an Outcome Mindset: Encourage your team to think beyond process execution and focus on how their work impacts business performance metrics like Days Sales Outstanding (DSO) and working capital.
- Address Fears Head-On: Be transparent about how automation will change roles. Frame it as an opportunity to take on more engaging, higher-impact work, and provide the necessary training to build confidence.
83% of finance leaders say rising customer expectations are increasing the pressure on AR operations.
2. Redesign Your Processes: From Manual to Agile
Static, manual workflows are brittle and inefficient.
A future-ready AR department needs agile processes that can adapt quickly to changing business conditions. The goal is to reduce manual touchpoints wherever possible, freeing up your team to manage exceptions and strategic initiatives.
Your Action Plan:
- Automate the Entire Cycle: Don’t just automate invoicing or cash application activities in isolation. Look for solutions that connect the entire AR cycle for maximum efficiency and ROI.
- Ensure Data Quality: Clean data is the foundation of successful automation. Standardize data entry, automate checks, and integrate systems to create a single source of truth.
- Continuously Refine: Treat process optimization as an ongoing journey, not a one-time project. Use agile methods to regularly review workflows and identify new opportunities for improvement.
Explore the tangible value of AR automation software and see the ROI and savings clients commonly achieve after an investment. Don’t miss this exclusive report from IDC.
3. Leverage Technology: From Automation to Intelligence
Technology is the engine of the modern AR team. But the focus today is on intelligent automation, using AI and machine learning to provide predictive insights that drive proactive responses and preventative strategies.
Your Action Plan:
- Build the Business Case: To secure investment, quantify the value of AI intelligence. Show how it will reduce DSO, improve accuracy, free up team capacity, and enhance the customer experience.
- Measure What Matters: Set clear KPIs before you implement new technology. Track metrics like your touchless cash application rate and the number of exceptions to demonstrate ROI.
- Integrate Your Systems: Choose AR automation software that integrates smoothly with your existing ERP and other financial systems to break down data silos and provide a holistic view of your receivables.
“Don’t take a piecemeal approach to automation. Partner with a technology provider that can offer an end-to-end solution.“
Mark Brousseau, President, Brousseau and Associates
The Future Belongs to the Bold
The future of work in finance starts now. By understanding the forces at play and focusing on these three pillars you can transform your AR function and position your team for long-term success.
Ready to dive deeper? Explore our comprehensive playbook for uplifting teams with new technology. Download your free eBook on modernizing AR processes.
