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Manual AR Practices Drain Millions From Mid-Market Firms
- The accounts receivable function is crucial for managing cash flow and customer experience in companies.
- Despite the availability of automation tools, many firms struggle to fully automate their AR operations.
- Middle-market firms lose millions due to delayed payments, emphasizing the impact of inefficient AR processes.
- Manual AR practices can lead to reactive collections, late invoice submissions, and revenue loss.
- Transitioning to predictive AR involves automating processes like invoice generation, payment tracking, and dispute resolution.
- Implementing automation can reduce days sales outstanding by 15% to 25%, potentially unlocking significant working capital.
- AI plays a crucial role in analyzing payment patterns, identifying risks, and enhancing cash forecasting in AR.
- Virtual cards and embedded payment solutions are transforming AR, offering faster payments and improved customer experience.
- By 2027, AI and machine learning are expected to augment over half of all AR processes in mid-to-large enterprises.
- Predictive AR is becoming a competitive advantage by informing pricing, sales strategies, and capital allocation.
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