Accounts receivable (AR) represents the payments a company expects from clients and appears as incoming cash on the balance sheet. Slow or manual AR processes create operational bottlenecks, delaying collections and increasing credit risk. Payment delays disrupt cash flow, force reliance on external financing, and wear down teams. Even a single day's invoice delay raises small-business borrowing by 1.1% — about $278.7 billion across markets — while 7–8 days increases borrowing 6.8%. Implementing AI in payment processes can accelerate collections, improve visibility and control, and modernize AR workflows. ClickUp offers an Accounts Receivable Action Plan Template to monitor receivables and address recurring issues.
This is not ideal when trying to close the books, hit targets, or stay afloat. Beyond the financial strain, payment delays increase credit risk, disrupt cash flow, and wear down already-stretched teams. However, implementing AI in your payment process can help speed things up and give you more control and visibility in your financial operations. In this blog post, we'll break down the tangible benefits of using AI in accounts receivable (AR) management and the best tools to modernize your AR processes.
The ClickUp Accounts Receivable Action Plan Template is a valuable tool for monitoring your company's progress in managing receivables. It allows you to quickly identify and address any recurring issues that may be causing payment delays, ensuring your cash flow remains healthy and predictable. What Is Accounts Receivable (AR) and Why It's a Bottleneck Accounts receivable refers to the timely payments a company expects from clients for goods or services delivered. It represents incoming cash as a current asset on the balance sheet.
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