# Breaking down the barriers of AR automation to help businesses save money 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-23
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: How AR Automation Can Save UK Businesses During Recession
Meta Description: Save money, time, and improve efficiency with AR automation. Break down barriers to embrace technological advances and eliminate bottlenecks in your accounts
URL: https://financedigest.com/breaking-down-the-barriers-of-ar-automation-to-help-businesses-save-moneyhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/automation-1736814556043-compressed.jpeg)

# ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/bojana-miletic-450x448-1736814556022-compressed.jpg)

_By_ **_Bojana Miletic,_** _Solutions Specialist at BlueSnap_

With the UK economy now in a recession, businesses’ ability to save money, time and improve efficiency never felt more crucial. Inefficient accounts receivable (AR) processes add stress to the priority, as it causes invoices to become overdue, payments come in late and businesses see negative cash flow. These are all side [effects that feel worse during a recession](https://www.financedigest.com/consumer-durables-sector-still-feeling-the-effects-of-recession.html "Consumer durables sector still feeling the effects of recession") and can be avoided. However, research shows that [three-in-five](https://home.barclays/news/press-releases/2022/01/three-in-five-uk-businesses-are-owed-money-from-late-payments--f/#:~:text=and%20Functionality%20%26%20Profile.-,Three%20in%20five%20UK%20businesses%20are%20owed%20money%20from%20late,stress%20and%20cash%20flow%20problems) businesses are waiting on money that’s tied up in overdue invoices with businesses find themselves getting paid up to eight days past due dates.

AR automation helps [businesses streamline the quote-to-cash process](https://www.financedigest.com/5-reasons-why-modernising-is-the-most-important-ongoing-process-for-any-business.html "5 Reasons Why Modernising Is The Most Important Ongoing Process For Any Business") and has proven to eliminate the bottlenecks of ineffective AR process. A new research report titled [“The Current State of AR Automation](https://bit.ly/3bK6mSz)”, highlights the opportunity as 200 executives were surveyed to explore the results of AR automation adoption. The report looks at the [growth that businesses](https://www.financedigest.com/which-kpis-should-a-budding-business-focus-on-for-sustained-growth.html "Which KPIs should a budding business focus on for sustained growth?") could achieve if they opt for an automated AR solution, but there are certain barriers that must be broken down for them to do so.

Businesses may have concerns about switching to an automated service but in order to [save money](https://www.financedigest.com/saving-money-hacks.html "Saving money hacks") and improve efficiency, embracing technological advances and shifting away from legacy processes is key.

## **The automation opportunity**

[Nearly half](https://www.financedigest.com/nearly-half-of-parents-still-give-pocket-money-to-their-adult-children.html "Nearly half of parents still give pocket money to their adult children") of the survey respondents (49%) admitted that they are still using legacy AR processes. Automation means removing some of the human side of a business’ operation, but arduous AR activities and manual [payment orchestration is an added expense for many companies](https://www.financedigest.com/why-are-companies-implementing-crypto-payments.html "Why are companies implementing crypto payments?"). Time is money, and AR automation, built for optimisation, is helping many businesses streamline their AR operations, ultimately [benefiting a business’](https://www.financedigest.com/5-ways-cfo-and-cio-collaboration-can-benefit-the-business.html "5 Ways CFO and CIO collaboration can benefit the business") bottom line.

This new [report found that 49.5% of businesses’](https://www.financedigest.com/how-increased-environmental-and-ethical-reporting-impact-businesses-and-their-cfos.html "How increased environmental and ethical reporting impact businesses and their CFO’s") current AR processing was either completely manual or mostly manual. Fragmented automation can be almost as damaging as none at all, as companies are [missing out on vital streamlining opportunities](https://www.financedigest.com/challenger-banks-missing-golden-opportunity-to-steal-business-from-competitors-by-repeating-same-old-mistakes.html "Challenger Banks Missing Golden Opportunity To Steal Business From Competitors By Repeating Same Old Mistakes") and the chance to meet their payments deadlines, invoicing targets and keep the end customer satisfied.

To maximise the benefit of automation, [companies need](https://www.financedigest.com/italys-windfall-tax-on-energy-companies-needs-to-be-rewritten-pm.html "Italy’s windfall tax on energy companies needs to be rewritten – PM") to step away from legacy processes, retire manual payment orchestration and embrace full automation. Our survey results found that 89% of businesses that have automated AR [processes are getting paid within their agreed payment](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") terms or faster, making cash flow management easier and minimising financial losses due to slow, laborious processing.

## **Breaking down barriers**

All [businesses have their own unique approach to the AR processes](https://www.financedigest.com/reckon-introduces-link-to-bank-data-to-help-small-businesses-streamline-the-reconciliation-process.html "Reckon introduces link to bank data to help small businesses streamline the reconciliation process ") and making a full switch to automation may be met with scepticism or even fear. When asked, 71% of executives confirmed that a lack of understanding over what technology is available topped the reasons for not [implementing more automation](https://www.financedigest.com/benefits-of-implementing-automated-testing.html "Benefits of Implementing Automated Testing"). Other [common reasons](https://www.financedigest.com/common-reasons-for-mot-test-failure.html "Common Reasons for MOT Test Failure") include concerns about negative impacts on customers (59%), resistance to change (58%) and worries about automation taking the human element out of the business (47%).

Typical AR management is manual and time-consuming. While this may seem inefficient to new employees and [technological innovators](https://www.financedigest.com/cloud-professional-services-market-to-be-driven-by-technological-innovation-tmr.html "Cloud Professional Services Market to be Driven by Technological Innovation | TMR"), for many people, it is all that they know. Changing to processes that minimise the human factor can be daunting, therefore, it is important for stakeholders and decision-makers to demonstrate clearly why AR [automation is the best option as we advance](https://www.financedigest.com/mercedez-benz-to-deploy-advanced-automated-driving-system-in-nevada.html "Mercedez-Benz to deploy advanced automated driving system in Nevada"). We often hear from our customers that fully automating AR processes has [seen an increase in efficiency and job](https://www.financedigest.com/icrc-to-cut-some-1500-jobs-as-humanitarian-budgets-seen-sliding.html "ICRC to cut some 1,500 jobs as humanitarian budgets seen sliding") productivity, as time isn’t being taken up by invoice chasing. AR teams [need to know](https://www.financedigest.com/g20-summit-what-you-need-to-know-now.html "G20 Summit: What you need to know now") their value and understand how automation will make their jobs easier, not become their replacement.

**How [businesses benefit](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") from end-to-end AR automation**

Organisations that have implemented automation [technology are seeing substantial benefits](https://www.financedigest.com/five-industries-benefiting-from-multi-carrier-sim-technology.html "Five Industries Benefiting from Multi-Carrier SIM Technology"). [Automating AR improves merchant services in several ways](https://www.financedigest.com/10-ways-automation-has-changed-the-role-of-the-cfo.html "10 ways automation has changed the role of the CFO"). The most common benefits include [improved productivity of the AR team](https://www.financedigest.com/improving-your-it-team-in-four-simple-steps.html "Improving your IT team in four simple steps") (67%), increased customer satisfaction (67%) and also improved customer retention (56%). As already discussed, the most compelling benefit of AR automation is to speed up the payments process, with 89% of respondents with mostly automated AR processing, [seeing payment terms](https://www.financedigest.com/israel-sees-no-new-iran-nuclear-deal-before-u-s-november-mid-terms.html "Israel sees no new Iran nuclear deal before U.S. November mid-terms") met or paid early. More efficient cash flow can only serve to positively impact the [business and provide everyone involved with an improved](https://www.financedigest.com/5-ways-to-improve-your-business-finances.html "5 Ways to Improve Your Business Finances") level of service.

An [accounts receivable automation](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation") system removes the risk of human error, typing mistakes and lost documentation. Automation offers efficiency and speed, which in turn leads to [reduced costs](https://www.financedigest.com/home-start-lincolnshire-implements-flexible-unified-communications-service-to-reduce-costs.html "HOME-START LINCOLNSHIRE IMPLEMENTS FLEXIBLE UNIFIED COMMUNICATIONS SERVICE TO REDUCE COSTS") in payment orchestration and processing. It also allows you to redirect your people, allowing them to dedicate more [time to complex problems and enhance customer service and experience focus](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES").

AR automation [solutions exist to ensure](https://www.financedigest.com/vias-cloud-based-solutions-ensure-painless-office-move-for-insurance-body.html "VIA’S CLOUD-BASED SOLUTIONS ENSURE PAINLESS OFFICE MOVE FOR INSURANCE BODY") that late payments aren’t a concern in any fiscal climate. If businesses take that first step to evolve beyond the traditional, the [cost saving](https://www.financedigest.com/top-5-ways-businesses-can-save-on-energy-costs-in-q4.html "Top 5 Ways Businesses Can Save on Energy Costs in Q4") benefits of optimised payments can be achieved alongside a multitude of benefits for the wider AR team. It’s [time for businesses](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model") to leave their legacy process behind and embrace the new.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---