AR automation is transforming how businesses handle credit notes, deductions, and disputes. These three areas are often messy, time-consuming, and full of manual errors. But with the right automation in place, what once took days can now be resolved in hours or less.
Let’s look at where the common problems arise and how automation can help clean things up.
Common Problems with Accounts Receivable and How AR Automation Helps
Credit notes don’t need to slow you down
Credit notes are essential for adjusting overcharges, returns, or pricing errors. But manual processes can delay issuance and affect your customer relationships.
AR automation helps by automatically generating credit notes based on predefined rules or triggered events. For example, if a product return is logged in the system, a credit note can be created and sent without manual input. This speeds up resolution, maintains customer trust, and keeps your ledger up to date.
Automation also helps reduce errors. Because credit note data pulls directly from your system records, it removes the risk of keying in the wrong amounts or referencing the wrong invoice.
Deductions shouldn’t go unnoticed
Unexplained or unauthorised deductions can quietly impact your bottom line. They’re often buried in remittance advice or short payments, and manual teams may not have time to investigate every case.
AR automation flags deductions the moment they’re received. Systems can match short payments against open invoices and alert teams if the reason isn’t clear. This lets you catch problems early, not weeks later during reconciliation.
Automation can also be used to categorise and prioritise deductions so high-value or high-risk ones get reviewed first. This improves visibility and speeds up resolution.
Disputes can be handled with less friction
Disputes are part of doing business, but they don’t have to disrupt your cash flow. When done manually, it’s hard to track who’s handling what, which documents are missing, or how long the issue has been open.
AR automation gives your team a shared view of the dispute resolution process. You can track timelines, attach supporting documents, and assign responsibility without the mess of emails and spreadsheets.
Plus, automated workflows help ensure no dispute sits unresolved. You can set reminders, escalations, or automatic updates to keep everything moving.
Make accounts receivable cleaner and faster
When credit notes, deductions, and disputes are left to manual processes, the result is always the same: delays, errors, and cash that takes longer to collect.
AR automation helps remove the friction. It gives your team more control, more speed, and more time to focus on what matters.
So, if these issues are eating into your time or your margins, it might be time to clean up your accounts receivable with automation. Contact us to find out more.