Key Takeways
- Automate the full order-to-cash lifecycle: Go beyond e-invoicing to digitize credit checks, invoicing, payments, cash application, disputes and reporting in one A/R automation platform.
- Turn overdue invoices into predictable cash: Combine A/R automation with funded net terms to stabilize cash flow, transfer credit risk and reduce dependence on credit lines.
- Connect your financial ecosystem: Integrate A/R automation with your ERP, payment rails, tax/e-invoicing engines and BI tools to eliminate silos and get a single source of truth for receivables.
- Pick the operating model that fits: Decide whether to build in-house, buy SaaS or outsource with a funded, managed model based on your internal capacity, risk appetite and channel complexity.
- Make paying effortless for buyers: Offer self-service portals, flexible payment options, structured dunning and co-branded experiences that improve collections while strengthening customer relationships.
- Future-proof for compliance and scale: Use ViDA-ready, globally compliant A/R automation with real-time dashboards so you can support new markets, tighter regulations and rapid growth.
Accounts receivable (A/R) is a critical finance function, but when managed manually, it can be time-consuming, error-prone and resource-intensive. Today’s finance leaders are turning to accounts receivable automation to streamline processes, eliminate inefficiencies and improve overall financial performance.
The urgency is clear: 43% of U.S. B2B credit sales are overdue, and 5% ultimately become bad debt. This highlight the risks of relying on outdated, manual workflows that slow down collections and obscure visibility into receivables.
By replacing outdated, manual workflows with intelligent automation tools, businesses can accelerate payment cycles, reduce human errors and gain clearer visibility into the receivables pipeline. The benefits extend beyond operational efficiency, they help create a foundation for stronger customer relationships, better financial decision-making and long-term scalability. Let’s look at how A/R automation works and explore seven keyways it can transform your receivables management.
TreviPay helps businesses automate A/R and improve the
order-to-cash process.
What Is Accounts Receivable Automation?
Accounts receivable automation uses technology to digitize and manage the end-to-end A/R process from invoice generation and delivery to collections and reconciliation. Instead of relying on spreadsheets, manual reminders and error-prone reconciliations, businesses adopt software that automates routine tasks and provides real-time insights.
Modern A/R automation tools can:
- Automatically generate and send invoices after transactions
- Schedule payment reminders and dunning messages
- Match incoming payments with open invoices
- Reconcile accounts and update records in real time
- Provide dashboards and reports to monitor A/R performance
These systems often integrate with enterprise resource planning (ERP) or accounting software, so businesses can enhance efficiency without disrupting existing infrastructure. Finance teams that adopt A/R automation and embrace digital transformation will spend less time on administrative tasks and more time on strategic analysis and customer engagement.
Instead of relying on spreadsheets, manual reminders and error-prone reconciliations or A/R outsourcing, explore the evolution of modern A/R processes.
What Enterprise A/R Automation Really Covers
Enterprise Accounts Receivable automation is more than digitizing invoices; it’s about streamlining the entire order-to-cash lifecycle to improve efficiency, reduce risk and accelerate cash flow. A modern enterprise A/R automation solution typically includes:
- Invoicing: Automatically generate and deliver invoices based on ERP data, with support for global formats and compliance.
- Reminders & Dunning: Schedule and escalate payment reminders to reduce days sales outstanding (DSO) and improve collections.
- Customer Portals: Provide self-service access for customers to view invoices, make payments and resolve disputes.
- Payments: Accept and reconcile payments across multiple channels—ACH, credit card, wire.
- Cash Application: Match incoming payments to open invoices using AI and rules-based logic, reducing manual effort.
- Dispute Management: Track and resolve billing issues with workflow tools that connect AR, sales and customer service.
- Reporting & Analytics: Gain real-time visibility into A/R aging, collection performance and cash forecasting.
Integration Snapshot
Modern Accounts Receivable Automation seamlessly connects to your existing financial ecosystem to create a unified, intelligent order-to-cash process. By integrating with critical enterprise systems and data sources, businesses can eliminate silos, enhance visibility and ensure accuracy across every stage of receivables management.
Key Integrations
| Category | Purpose | Examples |
|---|---|---|
| ERP / DMS Systems | Synchronize customer, invoice and transaction data in real time to ensure accuracy across financial systems. | SAP, Oracle NetSuite, Microsoft Dynamics, Workday, Sage |
| Payments & Lockbox | Streamline payment collections and reconciliation through direct connections to banking networks and payment gateways | ACH, Wire, Credit Card, Lockbox Feeds, Virtual Card Processing |
| Tax & E-Invoicing | Ensure global compliance by integrating with tax engines and electronic invoicing networks. | Avalara, Sovos, Vertex, PEPPOL |
| Single Sign-On (SSO) | Simplify access and enhance security through centralized identity management. | Okta, Azure AD, Ping Identity |
| Warehouse / BI Tools | Push A/R data into analytics environments for advanced reporting, forecasting and decision-making. | Snowflake, Tableau, Power BI, Google BigQuery |
Through these integrations, A/R automation extends far beyond invoice management, it becomes a connected intelligence layer that links payments, finance and customer experience into one cohesive ecosystem.
Build vs. Buy vs. Outsource: Choose Your Operating Model
Finance leaders increasingly cite cost containment and cash-flow optimization as top priorities, even as workloads continue to rise and budgets tighten. These pressures are fueling renewed interest in automation that help teams do more with less.
The right A/R operating model depends on your resources, risk appetite and need for predictability. The table below outlines key considerations:
| Option | Who does the work? | Who holds the credit? | Cash predictability | Best when… |
|---|---|---|---|---|
| Build (in-house) | Your team | You | Medium | You have large A/R ops & engineering bandwidth |
| Buy (SaaS A/R) | Your team + software | You | Medium | You’ll keep risk and only need automation |
| Outsource + Funded (TreviPay model) | Provider (managed A/R) | Provider | High | You want predictable cash, risk transfer and coverage for complex channels |
7 Business Benefits of Accounts Receivable Automation
Here are key accounts receivable automation benefits that help businesses unlock financial and operational value:
1. Faster Payments and Improved Cash Flow
One of the most immediate benefits of A/R automation is faster invoicing and collections. Automated systems send invoices promptly after goods or services are delivered and can schedule reminder emails or notifications in advance of due dates. This accelerates the payment cycle, reduces days sales outstanding (DSO) and ensures cash comes in more consistently, especially when supported by B2B payment automation that integrates invoicing and collections into a seamless process.
With a steady inflow of cash, businesses can invest more confidently in growth initiatives, meet their own payment obligations on time and reduce reliance on credit lines or external financing.
98%
Reduction in Days Sales Outstanding
2. Reduced Errors and Greater Accuracy
Manual processes often lead to data entry mistakes, missed follow-ups and invoice discrepancies—all of which delay payment and frustrate customers. A/R automation tools ensure consistency by validating data before sending invoices, applying payments correctly and maintaining accurate records.
Fewer errors mean fewer disputes and less time spent on back-and-forth resolution. The result is a smoother payment experience for customers and a more productive finance team focused on strategic priorities.
TreviPay’s managed A/R platform helped a global automotive OEM eliminate over 20% in billing errors and reduce administrative overhead, freeing finance teams to focus on strategy rather than manual reconciliation.
3. Enhanced Customer Experience
Your customers expect accurate billing and flexible payment options—and A/R automation helps you deliver both. Personalized invoicing, self-service payment portals, digital reminders and transparent communication all contribute to a seamless customer experience.
By removing friction from the payment process, businesses build trust and strengthen relationships with buyers. That’s particularly important in B2B environments where customer retention and recurring revenue are key drivers of success.
“The payment solution provided by TreviPay opened up new opportunities for us in the B2B space. By giving buyers more control over their cash flow and streamlining the accounting process, we can provide them with the best possible level of service.”
— Angus Cormie, Director of EMEA E-commerce, Lenovo
4. Better Visibility and Control Over Receivables
Automated A/R platforms offer real-time dashboards and reporting that give finance teams full visibility into invoice status, outstanding balances, and payment trends. Late-payment frictions are widespread, about 40–43% of B2B invoices run overdue in North America, so proactive reminders and self-serve portals materially improve outcomes. These insights allow for more accurate forecasting and smarter decisions about credit limits, collections strategy and working capital management.
You can track essential metrics like:
- DSO (days sales outstanding)
- Aging reports by customer or region
- Payment behavior by customer segment
- Trends in overdue invoices
Armed with this information, finance leaders can manage risk more effectively and adjust strategies based on performance.
5. Increased Efficiency and Lower Costs
Manual A/R operations require time and staffing to manage invoicing, payment tracking and reconciliations. In Europe, finance teams spend an average of 10.15 hours per week, nearly 73 days per year, chasing late payments, often diverting attention from strategic priorities. A/R automation removes much of the manual burden, freeing up finance teams to focus on higher-value work like analysis, reporting and customer engagement.
Automation reduces the need for paper-based invoicing, mailing costs and manual collection calls. Over time, the cost savings add up and businesses benefit from a leaner, more scalable finance operation that supports long-term growth.
“The hidden costs go well beyond headcount. Manual A/R ties up working capital, extends DSO and creates information lags that complicate forecasting. Worse, the administrative burden can ripple into executive decision-making. How many board meetings spend time on receivables concerns instead of growth opportunities? Each delay in converting receivables into cash limits agility and weakens resilience.” — Joel Campbell, Chief Financial Officer, TreviPay
6. Streamlined Collections and Fewer Disputes
Chasing down late payments is never ideal. A/R automation makes the collections process smoother by:
- Sending automated pre-due and post-due reminders
- Escalating follow-ups based on invoice age or customer risk
- Providing a clear audit trail for all communication
This approach reduces awkward, manual outreach and ensures consistency across customer accounts. Disputes can be resolved faster, and cash can be recovered with less friction—often without involving sales or customer service teams.
”Enhanced customer experience comes from removing pain points like credit applications and collections disputes.”
7. Predictable Cash with Funded Net Terms
Cashflow stability is critical for enterprises operating in industries where payment delays are common. In some markets where more than 40 percent of B2B invoices are overdue, even well-run finance teams face liquidity gaps that can stall growth and strain working capital.
A funded net-terms model helps overcome these challenges by introducing scheduled settlement and credit-risk transfer. Rather than waiting 30, 60 or 90 days for buyers to pay, sellers receive funds on a predictable timeline while the provider assumes credit exposure and manages collections. This approach transforms A/R from a variable cash inflow into a planned, forecastable revenue stream, enabling more accurate budgeting, steadier liquidity and stronger resilience during market volatility.
Unlike traditional factoring or receivables-financing programs, which can be transactional and often visible to buyers, TreviPay’s embedded, managed model operates behind the scene. It offers a seamless buyer experience, co-branded invoicing and unified credit management. Sellers benefit from risk mitigation, faster cash conversion and extended coverage across complex channels such as OEM-dealer-fleet ecosystems, all without sacrificing control of their customer relationships.
In short: funded programs turn uncertain receivables into predictable cash while unlocking working capital flexibility foran advantage that scales with transaction volume and channel complexity.
TreviPay helps the cycle industry to manage Seasonal Cash Flow with Trade Credit
Why It Matters Now: The Strategic Role of A/R Automation
As businesses continue to digitize and scale, manual A/R processes are becoming more difficult to manage—and more costly to maintain. Rising customer expectations, more complex sales cycles and the demand for flexible payment options have made automation essential.
At the same time, EU e-Invoicing mandates are rapidly expanding, including the upcoming cross-border B2B requirement under the VAT in the Digital Age (ViDA) initiative. Compliance-ready A/R systems are becoming table stakes for multinationals, ensuring invoices meet evolving tax and reporting standards while maintaining operational continuity across markets.
Accounts receivable automation doesn’t just improve back-office efficiency. It supports broader business objectives, including:
- Strengthening customer loyalty through smooth billing experiences
- Supporting digital transformation and ERP modernization efforts
- Improving financial agility and decision-making
Companies that adopt A/R automation now are setting themselves up for better scalability, faster international expansion and a more resilient financial backbone.
For multinational companies, ViDA isn’t just another regulatory update—it’s a shift that will reshape invoicing, tax reporting and compliance over the next five years.
— Ben Machen, Global Tax Director, TreviPay
TreviPay’s Approach to Accounts Receivable Automation
TreviPay simplifies and scales the A/R process for B2B sellers by offering a fully managed, dedicated accounts receivable automation solution that covers credit decisioning, invoicing, payment processing and collections—all with co-branded buyer experiences.
Rather than building and maintaining complex A/R operations in-house, TreviPay allows companies to outsource A/R functions without sacrificing control or customer satisfaction.
TreviPay’s A/R automation platform includes:
- Embedded trade credit programs with dynamic terms
- Automated invoice delivery and presentment
- Integrated payment processing and cash application
- Dispute management and collections workflows
- Real-time reporting for finance and sales leaders
Whether you’re selling to small businesses, mid-market accounts or large enterprise customers, TreviPay helps you deliver flexible B2B payment options while minimizing risk and maximizing cash flow.
Want to see how TreviPay can transform your A/R process?
FAQs
Is this factoring?
No. TreviPay is not a factoring solution. Unlike factoring, where invoices are sold at a discount to a third party, TreviPay enables you to extend net terms directly to your buyers while getting paid immediately. You maintain the customer relationship and pricing control and TreviPay handles credit decisioning, invoicing, collections and payment processing behind the scenes.
How is this different from a pure SaaS A/R tool?
Pure SaaS A/R tools provide automation software only. They help manage invoices but do not fund transactions or assume credit risk and your A/R team still needs to chase late payments. TreviPay combines A/R. automation software, financing and managed services into one platform. We automate the entire order-to-cash process, fund your invoices and own the receivables risk, so you reduce DSO, boost cash flow and focus on growth instead of collections.
Using TreviPay, what, if anything, will change for my customers?
Your customers get a seamless B2B purchasing experience. They continue buying from you directly but gain access to instant credit terms, consolidated invoicing and flexible payment options. TreviPay operates in the background to power those transactions, so your buyers enjoy convenience while you get paid right away.
What is my role as a TreviPay client in the implementation process?
Your team is essential to a successful implementation. You’ll designate key stakeholders, define features and supply branding elements like logos and domains. You’ll also manage integration with TreviPay’s APIs, support customer onboarding and provide account data. Finally, your team helps shape the go-to-market strategy and supports marketing activities such as launch communications and promotional efforts.
The Bottom Line
Accounts receivable automation is more than an operational upgrade—it’s a strategic enabler for finance transformation. The benefits are clear: improved cash flow, fewer errors, lower costs, better customer experiences and greater visibility into financial performance.
For businesses looking to modernize finance, support growth and meet rising customer expectations, A/R automation offers a smart and scalable path forward.
To see how accounts receivable automation can work within your existing systems, or how TreviPay can help accelerate your digital transformation, talk to our sales team.
