6 AI Tools Transforming Accounts Receivable Management

Managing accounts receivable (AR) is faster and more accurate with AI tools. These solutions automate repetitive tasks, predict payment behaviors, and improve cash flow. Here's what you need to know:

• HighRadius: Reduces Days Sales Outstanding (DSO) by up to 20% and automates cash application.

• Tennis Finance: Focuses on forecasting and risk management with predictive analytics.

• Kolleno: Cuts overdue balances by 71% with automated workflows and payment tracking.

• Corcentric: Streamlines invoice processing and payment analytics with ERP integration.

• Versapay: Improves cash application accuracy with 90% straight-through processing.

• Chaser: Speeds up payments with AI-driven reminders and multi-channel communication.

Quick Comparison

| Tool | Key Features | Best For | Notable Results |
| --- | --- | --- | --- |
| HighRadius | Predictive analytics, real-time data | Large enterprises | Cuts DSO by 20%; 80% automation |
| Tennis Finance | Risk assessment, forecasting | SMBs, SaaS companies | Improves cash flow prediction |
| Kolleno | Automated workflows, AI copilot | Mid-market businesses | 71% drop in overdue balances |
| Corcentric | ERP integration, payment tracking | Enterprises | Faster invoice processing |
| Versapay | Cash application, machine learning | B2B companies | 90% straight-through processing |
| Chaser | AI reminders, payer ratings | SMEs | 76% reduction in late payments

AI in AR saves time, reduces costs, and improves payment cycles. Ready to learn how these tools work? Let’s dive in.

AI-Powered Integrated Receivables Automation

1. HighRadius

HighRadius is an AI-driven platform designed to automate the entire accounts receivable (AR) process. Handling $18.9 trillion in transactions annually and supporting over 1,100 global clients, it addresses some of the biggest challenges in AR management.

The platform excels at lowering Days Sales Outstanding (DSO) by up to 20% and reducing bad debts by 10%. This is made possible through AI-powered automation across key AR workflows:

| <strong>Process Area</strong> | <strong>AI Automation Capability</strong> | <strong>Impact</strong> |
| --- | --- | --- |
| Collections | Predictive Analytics & Automated Outreach | 10x increase in collection efforts |
| Remittance Matching | Intelligent Document Processing | 40% reduction in manual effort |
| Deduction Resolution | AI-powered Resolution | 30% improvement in recovery rates |
| Cash Application | Automated Reconciliation | 30% faster dispute resolution

HighRadius integrates seamlessly with over 50 ERP systems using secure SFTP and API connections. It adheres to strict compliance standards, including SOC I, SOC II, ISO27001, and GDPR. Notable results include Clorox automating 80% of cash application processes and Wesco scaling AR automation across 27 ERP systems and 30 business units.

The platform leverages AI agents for highly accurate payment predictions, customer segmentation for focused collection strategies, and intelligent AR inbox management. It also prioritizes workflows for high-value invoices, ensuring efficiency where it matters most.

With a centralized data hub, HighRadius provides real-time insights through dynamic ERP dashboards. These dashboards offer instant visibility into AR aging and performance metrics. Additionally, its intuitive buyer portal simplifies invoice viewing and payments, addressing resistance to digital payment methods. This makes it especially effective for businesses managing complex setups with multiple ERPs and high transaction volumes.

Next, we’ll dive into another tool shaping the future of AR automation.

2. Tennis Finance

Tennis Finance tackles one of the biggest challenges in accounts receivable (AR) - forecasting. In 2023, 39% of respondents identified forecasting as their top concern, and Tennis Finance uses AI to address it head-on . The platform is designed for lenders, SaaS companies, and SMBs, offering an AR automation solution that prioritizes accurate forecasting.

By leveraging predictive analytics, Tennis Finance identifies high-risk accounts and anticipates payment delays. This proactive strategy helps businesses maintain steady cash flow by addressing potential issues early.

The platform incorporates multiple AI technologies, each serving a specific purpose:

| AI Technology | Function | Business Impact |
| --- | --- | --- |
| Machine Learning | Analyzes payment patterns | Predicts future payment behaviors |
| Natural Language Processing | Automates communication | Personalizes customer interactions |
| Predictive Analytics | Assesses risk | Improves credit decision-making |
| Robotic Process Automation | Handles payment processing | Reduces manual effort

Tennis Finance also automates routine AR tasks, which is increasingly crucial in today's automation-driven environment . Its smart automation covers essential areas:

• Payment recovery: Automates tracking, reconciliation, dunning with personalized messaging, and prioritizes collections based on risk.

• Cash flow management: Provides real-time forecasting, automated payment matching, and streamlined invoice processing.

• AI chatbots: Manage routine inquiries, allowing AR teams to focus on more strategic activities.

With its blend of automation and AI, Tennis Finance delivers a solution that balances personalized service with operational efficiency. This approach offers a clear improvement over outdated, labor-intensive AR processes.

3. Kolleno

Kolleno helps businesses cut down on manual tasks and improve accounts receivable (AR) collection rates. By using AI, it simplifies AR processes and accelerates payment timelines.

Companies using Kolleno have seen a 71% drop in overdue balances within 3-6 months . This success is largely due to its automated tools that manage key AR tasks:

| Process Area | AI Feature | Result |
| --- | --- | --- |
| Collections Management | Automated Workflows | 3X increase in client responses |
| Payment Processing | Automated Matching | 90% on-time payment rate |
| Communication | AI-Copilot Optimization | 10+ hours saved weekly |
| Risk Assessment | Real-time Monitoring | Continuous portfolio risk updates

For instance, DNA Payments experienced a 34% drop in overdue balances within three months of integrating Kolleno with NetSuite. Similarly, NetSuite users reported a 110% rise in collections and a 30% reduction in median days late .

"Switching between so many tools and systems when performing financial control is very time-consuming for businesses. Kolleno brings it all in one place enabling faster processes and payments." - Özlem Özüner, Operations & Finance B2B E-Commerce at Allianz Trade

Kolleno also allows businesses to create tailored collection workflows, taking into account factors like credit risk, overdue balances, and days past due. This helps optimize credit risk management and streamline dispute resolution.

The platform integrates effortlessly with major ERPs like NetSuite, Xero, and MSD365, as well as payment processors like Stripe and GoCardless . These integrations ensure smooth data exchange and automated processes throughout the AR system.

Kolleno's AI-Copilot improves communication, speeding up payment resolutions and strengthening customer relationships. Automated payment matching further reduces time spent on manual reconciliation while keeping financial records accurate. This combination of integration and automation makes Kolleno a powerful tool for AR management.

4. Corcentric

Corcentric's AI-driven order-to-cash (OTC) software simplifies accounts receivable management through automation and seamless integration. It focuses on automating workflows and ensuring accurate customer data management.

Here’s how the platform stands out:

| Process Area | AI Capability | Business Impact |
| --- | --- | --- |
| Invoice Processing | Automated Data Entry | Cuts down on manual processing time |
| Payment Analytics | Real-time Tracking | Improves cash flow prediction |
| Customer Management | Smart Relationship Tools | Enhances service quality

Corcentric uses AI to validate data, ensuring invoices meet compliance standards and payment terms are accurate. It also consolidates payment data, offering real-time visibility into accounts receivable to support better decision-making .

The platform integrates with existing ERP systems, centralizing financial and inventory tracking while keeping data secure. Its flexible design works for businesses of all sizes . By automating workflows, predicting customer payment patterns, and tailoring payment terms to different customer profiles, Corcentric provides a customized approach to managing receivables.

The automated OTC processes also minimize payment delays. This enables Corcentric to analyze trends and address customer needs proactively, improving cash flow and operational efficiency . Up next, we’ll look at how Versapay is reshaping AR management.

5. Versapay

Versapay simplifies accounts receivable (AR) management by automating cash application and improving team collaboration. Using machine learning, it matches payments from various sources - like checks, ACH, and wire transfers - against open invoices, making reconciliation faster and easier.

Here’s how it processes remittance data from different sources:

| Data Source | AI Feature | Benefit |
| --- | --- | --- |
| Vendor Portals | Automated Data Extraction | Cuts down manual work |
| Bank Lockboxes | Real-time Processing | Speeds up cash application |
| Email Attachments | Smart Data Capture | Reduces errors |
| PDF Documents | OCR Technology | Simplifies workflows

For example, Gulf Coast Panama Jack cut its Days Sales Outstanding by 67% and saved 20 hours weekly. North Atlantic International unlocked $10 million in revenue by streamlining AR processes .

The platform’s cash application solution boasts over 90% straight-through processing, slashing AR costs by up to 50% and delivering a 138% ROI in just six months . RPC saw a 70% drop in invoices overdue by more than 90 days .

"The streamlined and accurate cash application process we have been able to achieve as a result of Versapay has drastically improved our ability to perform the critical financial functions of cash flow forecasting and budgeting, which are especially important at year-end."
– Ed Aguero, Chief Financial Officer at Cole, Scott & Kissane P.A

Versapay’s machine learning ensures high accuracy, even for partial payments or missing data. Its exception handling system automatically routes issues for resolution . Sharp Canada’s experience highlights how the platform consolidates customer data into a single source of truth, supports self-service, and enhances communication during disputes - all while providing real-time insights .

The cloud-based portal also stands out with an 82% customer adoption rate - far above the industry average of 20%. This higher adoption translates into faster collections and better cash flow for businesses of all sizes .

With proven results like these, Versapay sets a strong benchmark for AR automation, paving the way for even more advanced solutions.

6. Chaser

Chaser leverages AI to revolutionize accounts receivable management, offering smarter payment predictions and automated collection processes. By analyzing payment patterns, its AI engine optimizes reminder timing, helping users get paid an average of three days faster with AI-recommended chasing times .

The platform uses a multi-channel strategy, integrating email, SMS, and phone calls into automated workflows. Here's how it impacts payment times:

| Communication Channel | Impact on Payment Time |
| --- | --- |
| Email Automation | Payments arrive 3 days faster |
| SMS + Auto-calls | Cuts payment time by 27 days |
| AI Payer Ratings | Reduces late payments by 76% (to 4 days)

Chaser’s AI features have delivered impressive results for early adopters. For instance, TaxAssist Accountants recovered £20,000 in client debts in just 30 minutes, while Love Brands saved over 15 hours weekly on payment collection tasks .

The platform also includes an AI-powered payer ratings system, which predicts the likelihood of late payments. This allows businesses to address high-risk accounts early, helping Chaser users recover $30 billion in late payments . Industries like construction, where mobile workforces make traditional email collections less effective, have particularly benefited from this predictive system .

"Our goal is to continue pushing the boundaries of innovation in credit management, making sure businesses get paid on time, in the most efficient way possible." - Sonia Dorais, CEO of Chaser

Chaser’s API integrates with major accounting platforms, syncing data every hour for seamless operations. Key integrations include:

| Integration Type | Key Benefit |
| --- | --- |
| Microsoft Dynamics 365 | Better control over overdue invoices |
| Xero & QuickBooks | Enhanced automation for payment reminders |
| Sage Suite | Simplified receivables management |
| Stripe | Easier payment processing

Real-world examples highlight Chaser's effectiveness. Fresh Financials, for example, reported major improvements in their accounts receivable processes. According to their founder:

"Chaser has really changed the space... Chaser is the one with the features we need. And at a great price, and with a great team supporting it, why would we ever change?"

With over 10,000 users worldwide, Chaser stands out for helping businesses strengthen client relationships while accelerating payments. One user even reduced their DSO (Days Sales Outstanding) by 60% after adopting the platform .

Tool Features and Capabilities

This section provides a comparison of key features, use cases, and measurable outcomes of various AI-driven accounts receivable (AR) tools.

| Tool | Key Features | Best Suited For | Notable Results |
| --- | --- | --- | --- |
| HighRadius | AI invoice processing, predictive analytics, real-time reporting | Large enterprises | 80% reduction in processing time; cost per invoice dropped from $12 to $1.50–$2.00 |
| Tennis Finance | Payment recovery automation, cash flow optimization, compliance insights | Lenders, SaaS companies, SMBs | Focused on fintech compliance with automated AR processes |
| Kolleno | Multi-channel communication, payment tracking | Mid-market businesses | Results not specified |
| Corcentric | Automated workflows, ERP integration | Enterprise organizations | Results not specified |
| Versapay | Collaborative AR platform, payment processing | B2B companies | Results not specified |
| Chaser | AI payment predictions, automated collections | SMEs | Reduced days sales outstanding to just four days, a 76% improvement

How AI Transforms AR Processes

AI technology has reshaped traditional AR workflows, delivering measurable improvements:

| Process Area | Efficiency Gain | Industry Average Improvement |
| --- | --- | --- |
| Invoice Processing | Automated extraction and validation | 80% faster processing |
| Payment Prediction | AI-driven payment pattern analysis | 3x higher likelihood of early payments |
| Cost Reduction | Streamlined operations | 30–50% savings on AP operations |
| Cash Flow | Enhanced collection effectiveness | 27% faster cash flow

These advancements showcase how AI tools improve efficiency and reduce costs, making them invaluable in optimizing AR management.

"No matter the economic circumstances, it's clear that AI continues to have a big impact on the collections space and credit management. Although it will never replace the invaluable work of a collector, it has the potential to make them much more effective and efficient by boosting their ability to maintain their organizations' cash flow at a time when external challenges pose enormous threats."

Industry-Specific Applications

Certain tools perform exceptionally well in niche scenarios. For instance, SAS Accountants helped a medical technology client cut their days sales outstanding by 75% during the COVID-19 pandemic, even while navigating NHS payment delays .

Integration Capabilities

AI-powered AR tools often integrate seamlessly with other systems to enhance their functionality:

| Integration Type | Benefits | Common Platforms |
| --- | --- | --- |
| ERP Systems | Streamlined data flow | SAP, Oracle |
| Accounting Software | Automated reconciliation | QuickBooks, Xero |
| Payment Processors | Real-time transaction tracking | Stripe, PayPal |
| Communication Tools | Multi-channel outreach | Email, SMS, Voice

This interconnected approach highlights the ongoing trend of digital transformation in AR management.

"AI is going to have an even bigger impact on humanity than the internet or mobile. We at Billtrust are leading the way in using it to help our customers get paid faster, run more efficiently and get deeper insights into their business than ever before. I am excited about the innovations that the team is working on and how it is going to change our industry."

ROI Considerations

When evaluating these tools, it's essential to assess:

• Current inefficiencies in AR processes

• Compatibility with existing systems

• Scalability for future growth

• Compliance needs specific to your industry

The potential return on investment is clear. For example, Huttie Group recovered £15,000 in old debt that would have otherwise been written off, thanks to AI automation . This underscores how these tools can deliver measurable financial benefits when implemented effectively.

Summary and Next Steps

After reviewing six AI tools, it's clear that AI is reshaping accounts receivable (AR) processes. Challenges like forecasting issues and late payments continue to affect the industry, highlighting the demand for AI-driven AR solutions .

Assessing Readiness

Before choosing an AR automation tool, take a close look at your organization's preparedness in these areas:

| <strong>Assessment Area</strong> | <strong>Key Considerations</strong> |
| --- | --- |
| <strong>Process Efficiency</strong> | Identify bottlenecks in current manual workflows. |
| <strong>Data Quality</strong> | Review data governance practices to ensure accuracy. |
| <strong>Team Capabilities</strong> | Evaluate the technical skills of your staff. |
| <strong>Integration Needs</strong> | Check compatibility with existing systems and tools

Implementation Strategy

Once readiness is evaluated, the next step is creating a focused implementation plan to ensure solid returns:

1. Analyze and Align: Review your current AR processes, establish clear goals, and pick a solution that fits your business needs. Research from Accenture shows that 59% of tasks in business and financial operations could be automated using generative AI .

2. Training and Governance: Offer targeted training for your team and implement strict data governance protocols to maintain accuracy and security.

Expected Outcomes

Adopting AI tools for AR can lead to several measurable benefits:

• Financial Gains: Lower bad debt write-offs, which often account for around 8% of annual revenue .

• Time Savings: Free up over 15 hours per week by automating repetitive tasks .

• Improved Cash Flow: Decrease days sales outstanding by as much as 75% .

These results outline a clear path to optimizing AR operations with AI.

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