Accounts Receivable Automation: Beginner’s Guide for SMBs

In this guide, we break down what accounts receivable (AR) automation really means for small and mid-sized businesses why it matters, how to get started, and when it pays off.

Why You Should Read This

Every growing business faces the same problem getting paid on time.

Manual follow-ups, outdated spreadsheets, and inconsistent reminders drain time and cash flow.

According to the QuickBooks Late Payments Report 2025,

56% of U.S. SMBs are still waiting on overdue invoices.

And the Old National Bank 2024 Study found that delayed invoices account for 11% of lost annual revenue across small businesses.

That’s why automating AR is no longer optional  it’s a competitive advantage.

What You’ll Learn Inside

This beginner-friendly guide covers everything you need to modernize your receivables process:

• What AR automation is and why it’s critical for accountants and SMBs.
• How to transition from manual invoicing to intelligent automation.
• Step-by-step setup data cleanup, integration, pilot testing, and scaling.
• Case studies from real SMBs that reduced DSO by up to 40%.
• Best practices for keeping customer relationships positive while automating.

The guide also links to trusted industry sources like

QuickBooks, Xero, Fundbox, and Billtrust.

Why It Matters

AR automation isn’t just a finance upgrade it’s a growth strategy.

Here’s what businesses see after automating:

MetricBefore AutomationAfter AutomationAverage DSO (Days Sales Outstanding)21 days13 daysTime spent on follow-ups8 hrs/week<1 hr/weekPayment visibilityFragmentedReal-timeCash flow predictabilityLowHigh

(MarketsandMarkets AR Automation Report 2024)

How Automation with Nerdpay Works

When you automate with Nerdpay:

1. Sync invoices from QuickBooks or Xero.
2. Set reminders and workflows that match your tone and client segments.
3. Track invoices and payments in one unified dashboard.
4. Automate cash application, Nerdpay reconciles payments once received.
5. Get insights instantly, DSO trends, risk reports, and customer patterns.

You stay informed, not overloaded.

FAQ

Q1: Will automation replace my AR team?

→ No. It automates repetitive tasks (reminders, matching) but humans remain critical for customer relationships, disputes, and exceptions.

Q2: Is AR automation only for large enterprises?

→ Not at all. SMBs benefit too, research shows many reduce DSO and cost-to-collect significantly once implemented.

Q3: How long does implementation take?

→ Simple pilots can go live in 4-8 weeks. More complex setups (multi-entity, currency) take longer.

Key Takeaways

• AR automation simplifies how businesses collect cash, no more manual chasing.
• It’s affordable, scalable, and integrates with your current tools.
• You’ll gain control, accuracy, and peace of mind.
• It’s the bridge between financial control and predictable growth.

You don’t need to chase payments you just need better systems.

Request a demo and see AR automation in action →

‍