Outsourced Accounts Receivable Automation: A Step-By-Step Guide To Efficient Collection Processes


Modern businesses increasingly rely on order to cash software to maximize efficiency in their accounts receivable operations. Outsourced accounts receivable automation can be used to streamline the collection process, eliminating the need for manual labour and allowing companies to focus their attention and resources elsewhere. In this guide, we?ll walk through the steps required to utilise this revolutionary new technology in your businesses day-to-day operations.

An Overview of Accounts Receivable Automation

Accounts receivable automation (or ARA) services involve transferring an organisation?s clients, invoices, and payments from their manual systems to cloud-based network. This facilitates faster and more efficient collection of payments and records. With automated accounts receivable services, paper invoices can be converted into electronic invoices, with payment processing remaining efficient as even aged invoices can be produced quickly and easily. Additionally, suppliers can be paid automatically, eliminating the need for tedious manual data-entry tasks.

Accounts receivable automation services may also provide additional features, allowing businesses to customize their systems to meet their particular needs. Examples of such services include document storage, account reconciliation, auditing, and electronic payments. The automation process simplifies the collection of outstanding payments, resulting in lower error rate and improved financial performance.

Using Accounts Receivable Automation

When implementing accounts receivable automation, businesses are advised to start by assessing their current accounts receivable system and deciding how they want to make use of the new automated services. Outlining the desired features, costs and timelines will help ensure that the process runs smoothly.

Organisations should then choose provider that can offer the services they require. Research the provider?s pricing model, features, and customer support, and ask them to explain how the process works. In addition, businesses should consider whether they need any additional services, such as document storage and electronic payments.

Once the provider has been chosen and the project plan has been outlined, businesses can begin the process of transferring their accounts receivable data to be automated by the provider, typically with the help of an implementation specialist. This process typically involves converting existing account records into an electronic format, processing payments, and automating collections and document processing systems.

Finally, businesses should select piece of software to help monitor cash flows. This can be useful tool for tracking outstanding invoices, payments, and customer balances. Most providers will have their own software that integrates with their accounts receivable automation services, or businesses can purchase software package from third-party provider.


Accounts receivable automation gives businesses the power to simplify and streamline their collection processes, reduce manual labour and human error, and quickly handle aged invoices. By following the steps highlighted above, businesses will be well-placed to begin reaping the rewards of the efficiency and accuracy that accounts receivable automation services can bring.