Post-Summer Productivity: How to Kickstart AR Transformation with AI

Getting back into the swing of things after the slow days of summer is never easy. Aside from catching up on emails, it’s also time to look at the coming quarters and plan accordingly. This all in addition to the usual pressures of improving working capital without expanding headcount or increasing risk.

We’d like to suggest an area often overlooked in digital transformation roadmaps: accounts receivable (AR). This omission is a bit unfair, because AR is a critical lever for improving cashflow, reducing operational costs and strengthening customer relationships.

To give you a clear roadmap for embarking on your back-to-work journey, we’ve come up with a strategic to-do list, to make it as easy as possible to get started. 

1. Audit the invoice-to-cash process

Why you should audit your I2C process

When the AR team operates in a silo, disconnected systems for credit checks, invoicing, collections and dispute resolution can cause a whole array of problems such as delays, errors and missed cashflow acceleration opportunities.

What to do when auditing your I2C process

Take a deep dive into how your accounts receivable process currently operates. Map out each step in the invoice-to-cash cycle and identify where manual work, duplicated efforts or lack of visibility are slowing things down. Pay special attention to handoffs between teams and systems.

What to look for:

• Are credit decisions based on real-time data?
• Is invoicing automated and error-free?
• Are collections prioritized based on risk or value?
• How are disputes tracked and resolved?

A clear process map will help you pinpoint where technology can make the biggest impact.

2. Set cashflow improvement targets

Why setting KPIs in AR matters 

Whether it’s reducing Days Sales Outstanding (DSO), improving forecast accuracy or lowering bad debt, CFOs need to have a clear roadmap to avoid transformation goals from being consumed by mission creep. 

What to do

Use historical data to set realistic, measurable targets.

For example:

• Reduce DSO by 10–15% over six months
• Improve dispute resolution time by 30%
• Increase collection efficiency index (CEI) to 95%

These targets will guide your technology selection and help build internal momentum.

Bonus! 

Benchmark against industry peers to validate your goals and identify competitive gaps.

3. Explore AI-augmented automation capabilities

Why explore AI automation in AR

It’s certainly no surprise that AI is also finding applications in accounts receivable. From predicting payment delays to recommending collection strategies or extracting data from all types of AR documents (e.g. financial statements, remittance advices, customer claims), AI can help Finance teams become more proactive and efficient.

What to do

Evaluate platforms with embedded AI agents designed specifically for AR that include capabilities like:

• Predictive risk scoring for customers
• Smart prioritization of collection tasks
• AI-powered data extraction
• Automated dispute classification
• AI-powered cashflow forecasting

These tools are not there to replace your team. They enhance and speed up decision-making, freeing up time for more strategic work.

4. Prioritize the user experience

Why you should involve the users

The minute an application becomes too difficult to use, the dreaded spreadsheets come out again. Intuitive, role-based interfaces for solutions that support the user workflows and reduce training time will make the AR team more effective and prevent AR job dissatisfaction.

What to do

Involve the end users in the evaluation process: the Credit Analysts, Collectors and Finance Managers will be best suited to answer questions such as:

• How easily can the needed data be accessed?
• Is the interface tailored to the role?
• How quickly can new users get up to speed?

A user-friendly solution improves adoption, reduces errors and accelerates ROI.

5. Build the business case for change

Why a convincing business case matters

Even a CFO needs to justify investments by presenting clear financial and operational benefits. With a strong business case in hand, buy-in from stakeholders is likely assured and benefits the alignment of digital transformation with broader strategic goals.

What to do

Quantify the cost of inefficiency in your current AR process.

Include metrics like:

• Manual hours spent on collections
• Revenue lost to late payments or write-offs
• Cost of disputes and customer churn
• Impact of the lack of visibility on real cash inflows on your cash strategy

Then model the potential impacts of automation and AI by using vendor benchmarks, case studies or pilot results. Highlight both hard ROI (e.g., cash flow gains) and soft ROI (e.g., improved employee productivity).

6. Align with IT on the integration strategy

Why IT matters

Despite its reputation, AR transformation isn’t just a Finance initiative: it’s a cross-functional effort. The IT team plays a critical role in ensuring that new solutions integrate seamlessly with existing systems and meet security and scalability requirements.

What to do

Engage IT early when implementing new AR systems and processes. 

Discuss:

• Integration with ERP, CRM and payment platforms
• Data governance and compliance
• Cloud architecture and scalability
• API capabilities and modular deployment

A strong partnership with IT will accelerate implementation and reduce risks.

Why choose Esker for AR automation?

Esker’s AR software empowers Finance teams with real-time visibility, AI-enhanced workflows and seamless ERP integration. Esker offers a centralized, end-to-end platform that spans across credit management, collections, cash application, customer invoicing, payments, and deductions.

With Esker, organizations gain:

• AI-powered insights to forecast payments, prioritize actions and detect risk
• Global compliance and scalability with support for 130+ languages and multi-entity rollouts
• Faster onboarding and credit decisions through real-time data integration

Want to know more? Read Esker’s latest AR playbook and find out what AI can do for your team, your company and your customers on a day-to-day basis.