Redefining AR: A Playbook for Modernizing Processes and Uplifting Teams

The way accounts receivable (AR) teams work is being redefined before our eyes.

Four Forces Reshaping AR 

AR leaders aren’t just facing change – they’re being hit with a tidal wave of transformation driven by hybrid work, artificial intelligence (AI) and automation, evolving CFO demands, and shifting workplace expectations. Each of these trends is redefining how AR teams operate, what skills they need, and the value they’re expected to deliver to the business.

1. CFO pressure and market volatility are raising expectations for AR.

Finance leaders expect AR to improve cash forecasting, drive customer satisfaction, and support a broader business strategy. That means AR must become an insight engine, not just a processing function. AR teams are increasingly being measured on their ability to influence KPIs like working capital efficiency and customer retention. 

100% of finance professionals report measurable benefits from AR automation.¹

2. The push for real-time insights and operational speed is fueling AI and automation adoption. 

The shift from manual to intelligent AR processes is critical. Manual and semi-automated approaches to receivables tasks simply can’t keep pace with today’s business demands for speed, accuracy, and real-time visibility. Fifty-five percent of AR leaders cite a lack of visibility into working capital as a top concern. Departments that delay adoption risk losing ground to competitors already realizing efficiency and accuracy gains. Automation is now more accessible and scalable than ever, enabling AR to automate without massive upfront investments.

Companies with high automation have seen days sales outstanding (DSO) and days to pay (DTP) reductions of over 40%, compared to ~30% for low-automation peers.¹

3. Employee demand for flexibility is driving the rise of hybrid work.

Hybrid work helps organizations access broader talent pools and reduce real estate and infrastructure costs. But remote and dispersed teams need secure, cloud-based systems that support collaboration and visibility from anywhere. Without cloud-based tools, communication and workflow bottlenecks can slow everything down. 

92% of finance professionals say AR software automation enhances customer experience by reducing friction and tailoring communications.¹

4. Workforce shifts and a competitive job market are reshaping talent expectations. 

Flexibility, purpose, growth – these are non-negotiables for today’s workforce. If your AR function doesn’t deliver them, you’ll struggle to attract or retain top talent, particularly young workers who represent more of the workforce.

95% of companies report AR automation has freed up team capacity for higher-value work.¹

Success in AR now hinges on how well leaders respond to these forces and turn them into a strategic advantage. Those who move quickly to modernize processes, empower their teams, and embrace technology will lead the way – while others risk losing their competitive advantage.

Machine learning is driving a shift toward proactive collections. AI flags risk and prioritizes outreach before issues escalate. This means collections teams can focus their efforts on where they’ll have the biggest impact on DSO and working capital. Machine learning algorithms identify at-risk accounts and automate outreach strategies – helping teams work more efficiently, supporting scalability.

AR organizations fully adopting AI reduce DSO and DTP even more so than non-AI peers.¹

AI-powered insights are turning AR professionals into analysts. Freed from manual tasks like data entry, AR teams can focus more time on scenario planning, forecasting, and strategic decision-making. Intelligent automation enables AR staff to operate at a higher level – delivering value far beyond processing transactions.

92% of AR leaders report that automation helps mitigate financial & compliance risks.¹

Advances in natural language processing and workflow tools are making exceptions easier to handle. Machine learning identifies common patterns and routes issues intelligently. Instead of bogging staff down in resolution workflows, systems can learn and adapt in real time – accelerating dispute resolution and freeing up AR resources. Top-performing companies are three times more likely to use AI to reduce DSO and resolve disputes faster2. AI not only improves efficiency but also enhances customer satisfaction by resolving issues faster and with greater accuracy.

90% of AR leaders view AI-driven automation as critical to their operations.¹

AI’s ability to intelligently match payments and remittances is transforming cash application. Automation reduces touchpoints, improving speed, and boosting accuracy. Intelligent matching and remittance data capture also make near-touchless cash application a reality – streamlining reconciliation and improving visibility.

Full-AI adopters see significantly higher customer satisfaction (58% versus 41%), DSO and DTP benefits, and enhanced risk mitigation.¹

61% of finance leaders believe their current tech stack isn’t flexible enough to meet future AR needs. Those who embrace AI and intelligent automation gain a competitive edge more quickly.

Your Team’s Role Is Evolving – Fast

As AI automation reshapes the tools AR teams use, it’s also redefining the roles AR pros play – elevating the function from transactional to transformational across the business.

Analyzing data for cash flow insights. The increasing availability of real-time AR dashboards and predictive analytics tools is driving a shift in how AR contributes to financial liquidity. AR teams now play a central role in shaping short- and long-term cash flow planning, as finance leaders rely on them for timely, accurate insights.

Partnering across sales, financial planning, and support. The growing need for seamless customer experiences and unified financial decision-making is fueling cross-functional collaboration. AR teams are now expected to align priorities, share data, and work closely with other departments to solve customer challenges.

Enhancing customer experience. Rising expectations for digital convenience and personalized service are transforming AR’s role in customer relationships. As the final touchpoint in the customer journey, payment experiences and the AR teams behind them must deliver timely, professional communications and offer options to strengthen satisfaction and loyalty.

Enabling smarter decisions at the top. Executive reliance on data to manage risk and optimize cash flow is expanding AR’s strategic influence. AR insights now play a critical role in guiding high-level decisions, from forecasting to capital planning and building financial resilience amid macro-economic changes.

83% of finance leaders say rising customer expectations are increasing the pressure on AR operations.²

Winning the War for Talent

Building a high-performing AR function starts with building the right team. Today’s talent has new expectations. To attract and retain skilled staff who can take on more strategic responsibilities, organizations must deliver more than just a paycheck. They need to offer flexibility, purpose, and growth – the very same qualities that are reshaping how AR teams operate and the roles they’re being asked to play.

Purpose in the work they do. As more professionals seek meaningful, impact-driven roles, it’s no longer enough to assign repetitive tasks. When AR teams understand how their work directly influences cash flow and business outcomes, they feel more engaged and motivated. Giving frontline staff visibility into the bigger picture fosters a stronger sense of ownership and pride in their contributions.

An environment that resonates. When young workers represent a majority of today’s workforce, hiring and retaining AR professionals means creating a work environment that feels familiar to digital natives. Consider that many young workers have never written a check or balanced a checkbook, so manual AR processes and time-intensive workloads can not only feel foreign but also incite frustration and discontent with their work. AI automation is essential in overcoming these challenges.

Growth through challenges and learning. In an era of rapid change, employees are looking for roles that help them grow. That means providing opportunities to improve, explore new technologies, and take on strategic responsibilities.

Flexibility to work on their terms. With changing workforce demographics and the widespread acceptance of remote work technologies, today’s professionals expect the freedom to choose where and how they work. Remote and hybrid arrangements are now standard – and if your systems can’t support them, you risk losing top talent.

Organizations that deliver on these expectations won’t just build stronger teams – they’ll gain a critical advantage in performance, engagement, and long-term resilience.

Nearly 70% of finance professionals say that career growth and purpose now matter more than compensation alone.²

By committing to adaptability, learning, innovation, and automation optimization, AR leaders can build teams and processes that are not only future-ready, but future-proof.

95% of finance leaders report AR efficiency gains post-automation – giving capacity for meaningful, career-oriented tasks.¹

Elevating AR’s Role in the Business

With the right playbook in place, the next step is making sure your AR operation earns the recognition it deserves. As AR grows more strategic, it’s not enough to simply execute well – teams must clearly demonstrate their impact across the business.

That means aligning with executive goals, collaborating across departments, using data to shape decisions, and advocating for the value AR delivers every day.

Link AR to revenue and customer experience (CX) outcomes. That’s because today’s executives are laser-focused on customer lifetime value and long-term growth. When you connect AR performance to business results like faster cash flow and stronger customer relationships, leadership starts paying attention.

Partner across departments. It’s becoming the norm as more organizations break down silos in pursuit of full digital transformation. Working closely with sales, finance, and operations helps resolve issues faster, reduce disputes, and deliver a more seamless customer experience. Automation plays a key role by centralizing data, standardizing workflows, and giving all teams access to the same real-time information – making cross-functional alignment easier and more effective.

Use AR data to influence strategy. Thanks to better integration and easier-to-use analytics tools built into modern AR platforms, this is more achievable than ever. Real-time AR insights can guide smarter decisions around inventory, cash flow, and risk – just be sure to share them in ways stakeholders can act on.

Champion your team internally. There’s a growing need for AR to be seen not just as efficient, but essential. Highlighting your team’s wins builds internal credibility, boosts morale, and helps secure support for future innovation.

When AR steps into the spotlight and shows its strategic value, it helps drive the agenda.

93% of finance leaders confirm that AR software delivered an expected ROI, with 40% experiencing faster payments and 92% achieving faster cash flow.¹