The True Cost of Manual AR Collections and the Advantages of Automation

Motasim Zawawi

Nov 18, 2023



Accounts receivable (AR) collections are a critical aspect of a company's cash flow management, particularly in the B2B sphere. Yet, many businesses continue to grapple with the inefficiencies of manual processes. These outdated methods consume valuable time, delay the cash conversion cycle, and introduce errors that can echo throughout the financial operations of a business.

The Hidden Costs of Manual AR Collections:

Manual collections are fraught with inefficiencies. Staff spend hours on tasks that could be automated, leading to lost employee productivity, higher overall costs, and the potential for human error. Furthermore, manual processes lack the agility to quickly respond to customer inquiries or disputes, potentially damaging customer relationships and brand reputation.

The Bigger Financial Burden:

Beyond the obvious labor expenses, manual collections impact cash flow. Delayed payments due to inefficient processes can result in a shortage of working capital, and the opportunity cost of not investing that cash back into the business can be substantial. In more dire cases, some companies find themselves in need for short-term financing due to inability to make payroll or other obligations.

Embracing Automation with Levers:

Levers’ AR automation solution addresses these pain points by:

  • Reducing DSO and Unlocking Cash Reserves: Our system speeds up the collection process, which in turn reduces DSO, allowing businesses to free up and utilize cash reserves that were previously tied up.

  • Consistency and Reliability: Automated "set and forget" reminders ensure that follow-ups are consistent and reliable, requiring minimal manual intervention.

  • Eliminating Labor Intensive Work: Automation frees up your finance team to focus on more strategic tasks, rather than repetitive collection efforts.

  • Enhancing Accuracy: Automated systems minimize the risk of human error, ensuring invoices are correct and payments are tracked accurately.

  • Improving Customer Satisfaction: Quick and efficient query handling improves overall customer service, encouraging prompt payment.

Data-Driven Insights:

Our system doesn’t just automate; it provides valuable insights. With Levers, businesses gain access to real-time data analytics, allowing for more informed decision-making and proactive management of accounts receivable.

The Result: Optimized Cash Flow and Savings:

By adopting AR automation, companies see a significant reduction in DSO. Streamlining collections results in a direct and positive impact on cash flow and operational efficiency, ultimately leading to cost savings and improved profitability.

Are you ready to cut the hidden costs of manual AR collections? Levers is your solution to transitioning into a seamless, automated AR process. Schedule a demo today and take the first step towards optimizing your financial operations for better cash flow management.