5 Workflow Inefficiencies That Accounts Receivable Automation Can Eliminate

Despite growing investment in digital transformation, many AR teams still find themselves stuck with time-consuming, repetitive processes. It’s not that these teams aren’t capable; it’s the way the work is structured. Too often, workflows rely on manual effort, patchwork systems, and outdated assumptions about how finance should function.

This kind of operational inefficiency takes a hit on productivity. It slows collections, inflates overhead costs, and keeps teams reacting to problems instead of getting ahead of them.

Thankfully, accounts receivable automation can help AR teams navigate these challenges easily.  In this blog, we will take a closer look at how automation eliminates 5 common workflow inefficiencies.

1. Repetitive Data Entry

In many companies, AR teams are still manually entering invoice data, updating ERP fields, or logging notes across multiple platforms. It’s slow, error-prone, and frankly unnecessary in 2025.

When payment data comes in, automation tools can extract it from bank files or remittance emails, match it to open invoices, and post it in the system automatically. No rekeying required. The same goes for updating contact info, logging calls, or tracking disputes—most of it can be captured and recorded without manual input.

This shift doesn’t just save time. It reduces mistakes, improves audit trails, and frees up analysts for more strategic tasks.

2. The Constant Search for Remittance Information

A payment arrives, but there’s no remittance attached—or it’s in an email attachment, or spread across three files, or worse, missing entirely. So someone from AR has to stop what they’re doing to figure out what the payment was for. That’s easily 10–15 minutes gone per transaction. Multiply that by hundreds of payments a month, and the cost becomes obvious.

Automation systems can now scan emails, lockbox images, even portal downloads, and automatically identify remittance details. Then they apply the payment to the correct invoice in real time. That’s not just helpful—it’s transformative.

3. Scattered Communication and Documentation

Customer communication is often scattered across Outlook, Teams, spreadsheets, personal notes, and outdated systems. When different team members touch the same account, context gets lost. Promises made to the customer aren’t always followed up. Disputes resurface because resolution notes weren’t logged properly.

With accounts receivable automation, all account-level activity, like emails, call notes, invoice attachments, and dispute documentation, can be stored in a shared workspace. It’s not just about organization; it creates accountability and ensures continuity, especially across larger teams.

4. One-Size-Fits-All Collection Tactics

Most AR teams follow a standard collections cycle—send a reminder after 30 days, escalate at 60, and so on. But this approach doesn’t consider which accounts are actually at risk. Some customers always pay a few days late but are consistent. Others might show early signs of default, but no one notices until it’s too late.

Automation platforms with built-in analytics can flag unusual payment behavior or prioritize accounts based on risk. That allows collectors to focus on high-impact accounts instead of treating all overdue invoices the same way. It’s a smarter allocation of effort, and it typically leads to faster collections.

5. Dispute Handling

Disputes are inevitable—pricing mismatches, damaged goods, incorrect terms. The real issue isn’t that disputes happen; it’s how long they take to resolve. In manual workflows, analysts often spend more time tracking down documents than actually resolving the issue.

Automation helps by keeping all relevant documents like PODs, contracts, and email threads in one location. It can also route disputes to the right internal team automatically, with all necessary details attached. That reduces back-and-forth, shortens cycle times, and gets revenue off hold faster.

Final Thoughts

There’s a tendency to think of automation as something massive—something that requires overhauling your tech stack or upending your team. But that’s not usually the case. Often, the biggest gains come from fixing smaller pain points that add up over time.

Eliminating just one or two of the inefficiencies above can lead to measurable gains in working capital, team capacity, and customer satisfaction. For finance leaders trying to scale without simply adding more headcount, that kind of operational efficiency is hard to ignore.

If your team still spends hours each week chasing down remittances, rekeying data, or resolving disputes manually, it might be time to re-evaluate how your workflows are built. Even small steps toward automation can unlock compounding value across your entire receivables operation.