The financial close process is a critical function for accounting and finance teams, yet many organizations struggle to complete it efficiently. According to Ventana Research (now ISG Research), only 50% of organizations can close their books within six business days each quarter. The delays often stem from manual accounts receivable (A/R) processes, which introduce errors, bottlenecks, and inefficiencies.

A/R automation offers a powerful solution to this challenge. By leveraging technology to streamline invoice-to-cash processes, organizations can accelerate the close, improve productivity, and enhance financial control.

The Power of A/R Automation

Traditional A/R management often relies on manual data entry, spreadsheets, and fragmented workflows, leading to errors, inefficiencies, and unnecessary delays. A/R automation, however, transforms this process by:

• Eliminating Manual Tasks – Automating data capture, invoice generation, and payment reconciliation reduces human intervention and the risk of errors.
• Enhancing Productivity – Automation allows finance teams to focus on strategic initiatives rather than administrative work.
• Improving Financial Resilience – Streamlining cash flow management ensures businesses can better handle economic fluctuations.
• Reducing Friction in Invoice-to-Cash Cycles – Faster payment processing improves customer relationships and reduces outstanding receivables.

By implementing A/R automation, finance teams can shift from merely tracking transactions to actively managing cash flow and liquidity with greater precision.

Accelerating the Close with Continuous Accounting

A key concept driving automation adoption is continuous accounting, which focuses on:

1. 1. End-to-End Process Automation – Automating financial workflows to minimize delays and ensure accurate data processing.
2. 2. Workload Distribution – Spreading accounting tasks throughout the period to prevent bottlenecks at month-end.
3. 3. Continuous Improvement – Using data insights to refine processes and eliminate inefficiencies over time.

Organizations that embrace continuous accounting through A/R automation not only close their books faster but also gain deeper insights into their financial position.

The Link Between Automation and Faster Closes

Ventana Research found that 88% of companies that have automated most of their close processes can complete them within six business days. In contrast, only 40% of companies with minimal automation achieve the same speed. Key benefits of A/R automation include:

• Streamlined Approvals and Workflows – Automation reduces approval delays and prevents last-minute bottlenecks.
• Enhanced Data Accuracy – Eliminating manual errors reduces the need for reconciliation, allowing for a smoother close.
• Improved Visibility – Finance teams can track real-time A/R status, enabling proactive decision-making.

The Strategic Value of A/R Automation

Beyond speeding up the close, A/R automation enhances overall business performance. Organizations gain:

• Stronger Customer Relationships – Proactive engagement and frictionless payment experiences improve customer satisfaction.
• Better Cash Flow Management – Faster collections and reduced days sales outstanding (DSO) free up working capital.
• Talent Retention – Automating tedious tasks allows finance professionals to focus on high-value work, improving job satisfaction.

Moving Forward

For finance leaders seeking to enhance productivity, reduce risk, and accelerate the close, A/R automation should be a top priority. By adopting the right technology, organizations can optimize cash flow, improve operational efficiency, and create a more agile finance function.

Download the full Ventana Research report here to explore key findings and expert recommendations.