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The Top 5 reasons why CFOs are frustrated with Automated Accounts Receivable

Why CFOs are frustrated with Automated Accounts Receivable

Technology is advancing exponentially, but providers are failing to address serious adoption issues for the mid-market CFO.

In an era marked by rapid technological advancements, Automated Accounts Receivable (AR) solution providers boast significant promises of streamlined processes and boosted efficiency. However, for many mid-market CFOs, the reality often falls short of expectations. Today’s automated AR software still fails to address the persistent bottlenecks in AR management, impacting the ultimate goal of increased cashflow.

Based on conversations with CFOs and other relevant stakeholders at mid-market companies, we have identified 5 common frustrations associated with AR automation from SAAS providers.

1. Speed of Implementation

Implementing AR systems can be a lengthy process, taking months or even more than a year to complete. During this time, organizational dynamics evolved, rendering the original objectives outdated. CFOs expect AR solutions to swiftly deliver on their core promise of increasing cash flow without prolonged implementation periods.

2. Lack of Vendor Support and Integration

CFOs face hurdles when AR software fails to seamlessly integrate with other financial systems and departments. This lack of integration leads to manual workarounds, data discrepancies, and delays in processing information. Modern CFOs seek AR solutions that can integrate with ERP systems and client payment portals effortlessly, enabling smooth workflow automation and real-time visibility into cash flow.

3. Automating Flawed Accounts Receivable (AR) Processes

Pure automation of AR won’t solve root causes for payment delays. CFOs want these processes improved, not just automated. Traditional AR software vendors often don’t have the expertise to fix complex AR issues. Just automating these faulty processes can still lead to inefficiencies that block cash flow. To receive the full benefit from AR automation, companies must combine technology with expert process improvements.

4. Inadequate Reporting and Analytics

Limited reporting capabilities within AR software inhibit CFOs’ ability to derive meaningful insights from data. Customizable dashboards, KPI tracking, and advanced analytics tools are essential for informed decision-making and optimizing collections strategies. AR solutions must provide comprehensive reporting functionalities to meet the needs of modern finance leaders looking to eliminate barriers to receiving the maximum cash flow from their receivables.

5. Product Inflexibility

CFOs expect AR tools to adapt to their evolving business needs. However, many automated AR solutions lack flexibility, making it challenging to modify queries or accommodate changing business responsibilities and company processes. This inflexibility hampers the ability to capitalize on new opportunities and gain insights quickly.

CFOs are solving AR challenges through collaborations with AR Experts

In response to these challenges, CFOs are turning to AR experts who specialize in integrating, automating, and managing AR processes for mid-market companies. These experts collaborate closely with CFOs to optimize AR processes, streamline automation, and enhance portal integrations. Specialty AR Management Firms like TCD offer comprehensive AR outsourcing services, along with robust automation to drive significant improvements in cash flow within a short timeframe. By partnering with AR experts, CFOs can overcome adoption hurdles and harness the full potential of modern AR solutions.

As technology continues to evolve, CFOs must prioritize finding the right partners to implement and manage modern AR solutions effectively. With the support of AR experts like TCD, CFOs can navigate the complexities of AR management with confidence and achieve tangible improvements in cash flow and operational efficiency.

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