Accounts receivable is at a crossroads.
Our latest research reveals that while most organizations have begun their automation journey, very few have fully transformed their AR function. The result? Teams are stuck in a hybrid state of part manual, part automated, which leaves efficiency, cash flow, and customer experience improvements on the table.
Most Companies Are Only Halfway Automated
When asked about the percentage of AR processes currently automated, the majority of respondents reported operating in the 0–50% automation range.
- 57.48% of respondents fall between 0–50% automated
- The largest segment sits between 26–50% automated
- The second largest falls between 51–75% automated
- Only 7.31% report being 75–100% automated
This data confirms what many AR teams already feel every day: manual processes are still a major burden.
Posting payments.
Reconciling transactions.
Sending reminders.
Managing disputes and exceptions.
Without end-to-end automation, these tasks consume significant time and resources. AR remains operationally heavy instead of strategically focused.
“This data suggests that there is still a long runway of potential ROI for companies who transform and automate their AR function. It appears most organizations are operating in a hybrid manual/automated state that likely is creating data accuracy risks, slowing down collections, and increasing resource hours,” said Ryan McBee, Director, iSolutions.
True end-to-end automation is still rare. And that means opportunity is everywhere.
2026 AR Priorities: Efficiency and Cash Flow Take Center Stage
When respondents were asked to identify their top AR priorities for 2026, two themes dominated:
#1 Lower Processing Costs
#2 Reduce Overdue Accounts
Nearly 60% of respondents selected these as top priorities.
This tells us something important: AR leaders are under pressure to deliver measurable financial impact, not just execute transactions.
Other Key Priorities Include:
- Increase automation (43.4%)
- Improve customer experience (41.89%)
- Improve reporting and visibility
- Better reconciliation workflows
- Improve payment flexibility (ACH, credit card, recurring)
Notably, customer experience is no longer an afterthought. Historically viewed as a back-office function, AR is now recognized as a direct contributor to the overall customer journey.
When paying an invoice is simple and frictionless, everything improves:
- Faster payments
- Lower DSO
- Fewer disputes
- Less manual follow-up
Yet one gap stands out.
Self-Service Is Emerging — But Still Under-Adopted
Only 27.9% of respondents listed implementing a customer portal as a top priority.
That’s surprising. Late payments and manual requests are ongoing challenges. A self-service portal directly addresses both—giving customers visibility into invoices, payment history, and real-time balances while enabling immediate online payments.
The correlation between self-service and improved DSO, reduced workload, and higher satisfaction is clear. But many organizations haven’t fully connected those dots—yet.
“No matter the size of a company or the number of invoices they process, the data shows they are under pressure to deliver more with less. When nearly 60% of companies say lowering costs and reducing overdue accounts are their top priorities, that tells me the game has changed. It’s no longer about getting invoices out the door, it’s about tightening the entire revenue cycle. 2026 is the year AR stops being a back-office burden and becomes a real driver of cash flow and customer satisfaction, said McBee.
Technology Investments for 2026: Visibility and Payments Lead the Way
Every respondent indicated they are considering investing in AR technology in 2026.
The top areas of focus:
- Better AR reporting
- Customer portal
- Integrated credit card & ACH
- Automated payments
- Recurring billing automation
- AI-driven collections tools
Better reporting slightly edged out other options, signaling that leaders want improved cash visibility and forecasting accuracy.
But payments infrastructure is the real headline.
- 42.29% are prioritizing integrated credit card & ACH
- 40.14% are prioritizing automated payments
These numbers reflect a common pain point: manual payment posting is time-consuming and prone to error. Integrated payments eliminate duplicate entry, reduce reconciliation issues, and accelerate cash application.
Automation at the payment level often becomes the catalyst for broader AR transformation.
The Big Picture: A Massive ROI Opportunity
The data paints a clear picture:
- Automation levels remain low.
- Cost pressure is high.
- Overdue accounts are a top concern.
- Customer experience is becoming strategic.
- Technology investment is increasing.
Most organizations are operating in a hybrid manual state that limits efficiency and introduces risk. But that also means the runway for ROI is significant.
2026 is shaping up to be the year AR evolves—from reactive processing to proactive cash flow management. The organizations that fully integrate automation, payments, reporting, and self-service won’t just reduce workload. They’ll accelerate cash, improve customer relationships, and turn AR into a competitive advantage.
This is only a portion of the findings included in our recent report – download the full State of Accounts Receivable in 2026 report here.
