When it comes to accounts receivable (AR), finance teams often juggle a lot between tasks like chasing down payments, sending reminders, logging notes, keeping tabs on disputes, and just trying to keep the cash flowing in. But if you’re still relying on spreadsheets, Outlook reminders, or patchwork ERP modules, it might be time to rethink your approach.
This is where Accounts Receivable (AR) automation tools come into play.
The right solution can take a good chunk of that manual work off your plate. But not all tools are created equal. Some promise automation and end up just digitizing what you already do. Others genuinely change the game.
So, if you’re looking for an accounts receivable automation solution, here are seven features that are worth paying close attention to.
1. AI-Based Prioritization (Not Just Static Worklists)
Most tools can create a list of who owes you money. That’s not new. But the real value lies in how those accounts are ranked.
Look for tools that use AI or predictive analytics to rank accounts based on risk, payment behavior, and potential delinquency, not just due dates. For example, if Customer A usually pays 10 days late but isn’t a real risk, and Customer B has shown signs of future non-payment, the tool should flag B first, not just whoever’s oldest.
This kind of intelligence can help collectors work smarter, not just faster.
2. Automated Customer Outreach (And Yes, With Templates)
It’s one thing to centralize all your communication. It’s another to automate it.
Solid AR platforms let you set up smart outreach, emails that go out automatically based on aging buckets, payment behavior, or even lack of engagement. To leverage some advanced technological benefits look for tools with customizable templates and the option to tweak them at scale.
Some platforms also include AI that can draft personalized follow-ups for you. It can save your team from rewriting the same “friendly reminder” for the 50th time.
3. Portal Automation for Payment Status Tracking
If your team is spending hours each week logging into AP portals (yes, the dreaded Ariba, Coupa, SAP, etc.) just to check if an invoice was approved or paid then it’s a bad use of their productive hours.
Some accounts receivable automation solutions now offer portal automation, bots that log in, scrape payment status, update your system, and even fetch remittance info. No more toggling through 12 portals with 17 different passwords.
This isn’t a flashy feature, but it’s a huge time-saver.
4. In-App Calling and Communication Tracking
Goodbye sticky notes and forgotten follow-ups.
Modern AR tools are starting to include in-app dialers and email inboxes. It means every call, email, and note is logged automatically, along with outcomes, timestamps, and next steps.
Some platforms even transcribe calls and use NLP to capture the customer’s intent. So instead of relying on what a collector remembers, you’ve got a record of what was actually said.
It’s not just for efficiency—it’s protection, visibility, and better management.
5. Integrated Dispute Management
Disputes are often where accounts receivable processes become complicated. A customer might claim they never received the purchase order, raise concerns about pricing discrepancies, or question unexpected freight charges. What begins as a standard “due in 30” invoice can quickly escalate into a 90-day delay, disrupting cash flow and increasing follow-up efforts.
You need a tool that doesn’t just track disputes but routes them to the right team (pricing, shipping, sales ops) and follows up until it’s resolved.
Bonus points if the system lets customers log disputes through a self-service portal. It makes the process smoother for both sides.
6. ERP Connectivity and Real-Time Data Sync
Automation is only as good as the data it runs on.
Any good AR tool should integrate tightly with your ERP, whether it’s SAP, Oracle, NetSuite, or something else. And not just for a daily batch update. Real-time or near real-time sync is critical, especially when collectors are on the phone with customers or making decisions about escalations.
If your system is a day behind, your team’s already working blind.
7. Actionable Dashboards (Not Just Pretty Charts)
Every platform comes with dashboards these days. But too often, they’ve have an appealing UI but not much use case for the user.
You want dashboards that help drive action, like aging reports that let you drill down to customer-level insights, or collector performance boards that highlight who’s at capacity and who has bandwidth.
Even better if the dashboard shows trends in DSO, past-due metrics by region, or disputed dollars over time. Not just data but data with context.
Final Thoughts
At the end of the day, the goal of AR automation isn’t to replace your team. It’s to make them more efficient, more strategic, and better equipped to handle scale.
The market’s flooded with options, and every vendor will claim to do it all. So look beyond the buzzwords. Ask how many customers actually use the features. Ask how easy it is to roll out. Ask what kind of ROI other finance teams have seen, and how quickly.
Because if you’re going to invest in automation, it should feel like more than just a software upgrade. It should feel like a weight lifted.
