Aug 01, 2025
Distressed businesses don’t have the luxury of time – they need to improve cash flow quickly. Turnaround and restructuring professionals must free up working capital within weeks to keep businesses afloat. One of the quickest solutions? Automating accounts receivable (AR). Modern AR automation can deliver ROI and cash-flow gains in under 60 days. Here are five practical ways to rapidly improve cash flow by automating your accounts receivable process, reducing your Days Sales Outstanding (DSO), improving collections, and boosting liquidity.
Speed matters when chasing overdue invoices. Manual emails and calls mean delayed payments. Automating your collections ensures no invoice is overlooked. Platforms like Invevo automatically send timely payment reminders and follow-up escalations. This consistent, systematic approach reduces DSO significantly, allowing your team to personalise attention for high-risk or valuable accounts. Result? Faster payments and improved cash flow.
Not all customers or invoices are equal. To free up maximum cash quickly, AR automation with AI analytics prioritises collections effectively. Intelligent systems analyse your data to highlight high-value overdue balances, predict late payers, and recommend optimal strategies. Forward-thinking finance teams report an average DSO reduction of 33 days using AI-driven prioritisation. Such improvements unlock significant working capital rapidly.
Invoice disputes and billing errors delay cash flow. Resolving issues manually could take weeks, but automation compresses timelines dramatically. Integrated AR platforms centralise invoice data, communications, and payment history, making dispute resolution quicker and smoother. Customer self-service portals further enhance efficiency. Fewer disputes and faster resolutions lead to happier clients who pay promptly, unlocking cash otherwise stuck in limbo.
Accelerate cash inflows by making payment frictionless. AR automation solutions offer convenient online payments (ACH, credit card, digital wallets). Additionally, smart AR systems identify opportunities for early payment incentives, such as discounts for quick settlements. A well-targeted 1-2% discount for payment within 10 days can significantly speed up collections. Combining ease of payment with targeted incentives rapidly improves your working capital position.
What gets measured, gets managed. AR automation software provides real-time visibility into DSO, aging buckets, and productivity. Live dashboards accessible by finance and collections teams track daily cash collection goals, alerting you immediately if metrics veer off track. Real-time analytics empower you to redirect resources or adjust strategies proactively, maximising cash flow improvements within the targeted 60-day window.
Improving cash flow in 60 days is ambitious yet achievable with the right AR automation strategies. By automating routine tasks, leveraging AI insights, and simplifying customer payments, businesses see dramatic improvements quickly. The strategies outlined above focus on working smarter—not harder—in collections. Invevo's AI-driven AR automation platform provides quick wins by reducing DSO, boosting working capital, and swiftly turning around cash flow.
