Digital co-worker in AR
AI and ML, Digital Workers / February, 22 2023

Transforming your AR process with a digital co-worker

The finance and accounting department is the heart of any business, and where it sits in terms of digital transformation manifests where the organization sits. A modern-day CFO is considered a strategic changemaker who brings about innovation and automation through technological solutions rather than a bookkeeper. Processes such as Accounts Receivable are critical to the business and complex, highly labour-intensive, and detail-oriented functions. Simple automation too, struggles to create an impact, as there are a lot of unstructured data, complexity, and scalability issues. With the average accounts receivables days ranging from 10 to 300+ days, we wonder how we can enhance the process. In this blog, we will find out how AI-powered digital co-workers can transform the AR (Accounts Receivable) process and make an organization more productive with better customer and employee satisfaction.

What is Accounts Receivable?

A critical part of any company’s assets is Accounts Receivable. It supports generating cash inflow in the accounting books of the enterprise. It also determines the enterprise’s future cash flow as easing the transaction process for the customers, providing credit facilities, and establishing a robust relationship with the customer add value to the business. Furthermore, proficient AR management attracts better deals, as well as, good investors since a good collection efficiency record is a requisite for investors who are looking to invest. 

Moreover, after the pandemic, whether a company is small or big, we can understand that the organization’s cash flow gets the foremost emphasis. Thus, every business is looking for the most effective and efficient ways to manage their accounts receivable so that the receivables in the balance sheet are quickly transformed into cash.

Why is Accounts Receivable important?

Management of accounts receivable has the capability to make or break a business. Mismanagement in AR can cause disastrous cash flow scarcity. According to research by U.S. Bank, about 82% of businesses close shop suddenly due to defects in their cash flow system. Thus, every business needs to manage its accounting carefully and avoid mishaps.

Manual vs. Automation processing

Though the exact workflow may vary, the basic AR process includes the following steps:

  1. Billing – Sending invoices to customers.
  2. Payment collection- Customers pay the outstanding invoices. 
  3. Reconciliation- Matching payments to invoices and updating the records.

According to Paystream Advisors, for businesses that use manual processes for AR processing, 15% of their time goes to prioritizing work, another 15% to assembling data to collect, and only 20% of the time on customer communication regarding collections. Again, the businesses which use ineffective tools for managing the accounts receivable processes also spend a lot of time on manual efforts. Each step of the AR process, viz invoicing, payment collection, and reconciliation, involves many tedious, time-consuming, and error-prone steps. Automation can relieve many mundane tasks and augment the AR process. 

What is AR processing after leveraging RPA tools?

Robotic process automation (RPA) has been around for some time, and it helps execute high-volume, repeatable, and rule-based tasks. It can automate AR processes such as invoicing and cash reconciliation smoothly. However, with the present high volumes of AR processing in most industries, mere RPA and OCR (optical character recognition) will not suffice. Moreover, there is a need for more workforce in every industry. In addition to that, customer expectations are grand. Customers hardly have the patience for slow processing or errors. Even after leveraging RPA solutions, the enterprise may need additional software and solutions. For instance, when it comes to prioritization and flexibility, an RPA tool cannot identify from a pool of invoices. Or when there are varied sources and multiple formats, RPA will need additional help to overcome them and automate the workflow. Thus, the time has come for enterprises to integrate Artificial Intelligence in simple rule-based automation processes. 

Transformation beyond RPA- augmenting AR with a digital co-worker

What is the next best solution? Organizations need a comprehensive and cognitive solution to augment the employees. This is when Machine learning, Intelligent Character Recognition (ICR), Analytics, Artificial Intelligence, Natural Language Processing, and RPA all come together as a complete solution in the form of a digital co-worker. Just like another organization employee, a digital worker is a software solution who is intelligent and can not only automate the tasks but can carry out complete end-to-end tasks efficiently. With human-in-the-loop, the digital co-worker escalates any issues to the human employee and learns while doing. So that the next time the same issue comes, it can handle it on its own. The seamless blend of all the AI (Artificial Intelligence) tools, analytics, and automation can skyrocket the AR processes.

Transformational touch points

A digital co-worker can transform the AR process in several ways:

  • Available 24/7 with no burnout- A digital employee works even when human employees take a break, all the while automating the tasks and managing the complete processes. 
  • Connection – Since a digital co-worker is easy to set up and forms a seamless connection between the processes and human employees, it delivers the best outcomes. It boosts not only the customer and employee experiences but also all the business stakeholders.
  • Transforms the journey– Leveraging digital workers, you can re-engineer the user, customer, and employee journeys.

Tara, the Accounts Receivable Specialist

Let us consider the digital co-worker Tara- an accounts receivable specialist. Unlike any other automation processes, Tara can manage the entire AR process, from credit management to invoicing and reconciliation. Some of her responsibilities are:

  • Receiving and authenticating all the bank wires
  • Maintaining the auditing databases and spreadsheets and updating information whenever required.
  • Corresponding with customers and clients to request payment and arrange payment plans
  • Collecting payments from the customers and records in the system accurately
  • Analyse and produce reports documenting overall profits and losses
  • Updating clients’ accounts based on payments/contact information
  • She can instantly connect to the financial systems of record.
  • Collect and normalize forecast inputs across all the systems.

What are the key advantages of having Tara in AR processes? 

  • Complete automation of all the receivables
  • 3 times increase in collections productivity
  • 24/7 customer service
  • 50% decrease in operational cost of collection
  • 40% reduction in DSO

What is unique about having a digital co-worker?

  • Scaling is easy– you can scale up or down easily, as per your requirements.
  • Maintenance– For any automation processes, it is an ongoing process that incurs regular maintenance costs. For digital co-workers, there is none, as it is included in the subscription itself.
  • No platform licensing costs– Any software solution will have its platform licensing costs. A digital co-worker does not require any license costs.
  • Easy integration – Supporting restful API, digital co-worker gets easily integrated.
  • No add-ons required – Any other software tool may require custom development and continuous improvements in its processes.
  • Active learning – A digital co-worker keeps enhancing the processes by bringing about continuous improvement via active learning.

Digital Clerx

Saxon’s Digital Clerx is revolutionary and can bring about positive transformational changes for enterprises. Tara is one such Digital Clerx who handles the Accounts Receivables process. Apart from Tara, there are various other personas such as Emma- Accounts Payable Specialist, Insurance underwriter, expense management specialist, customer service specialist, and many more. You can also have a digital co-worker tailored for your specific roles. Moreover, you can schedule a free trial and see how it delivers value from day one itself.

Get in Touch


Stay up-to-date with our latest news, updates, and promotions by subscribing to our newsletter.

Copyright © 2008-2023 Saxon. All rights reserved | Privacy Policy

Address: 1320 Greenway Drive Suite # 660, Irving, TX 75038

We Help Enterprises Achieve Their Transformation Goals

Request a callback

Saxon AI

Address:  1320 Greenway Drive Suite # 660, Irving, TX 75038 United States.
Phone: +1 972 550 9346

Sija Kuttan

Sija Kuttan

Vice President - Sales

Sija.V. K is a distinguished sales leader with a remarkable journey that spans over 15 years across diverse industries. Her expertise is a fusion of capital expenditure (CAPEX) machinery sales and the intricacies of cybersecurity.

Currently serving as the Vice President of Sales at Saxon AI, Sija adeptly navigates market dynamics, client acquisition, and channel management. Her distinguished track record of nurturing strong relationships, leading diverse teams, and driving growth underscores her as an adaptable and seasoned sales professional.

Gopi Kandukuri

Gopi Kandukuri

Chief Executive Officer

Gopi is the President and CEO of Saxon Inc since its inception and is responsible for the overall leadership, strategy, and management of the Company. As a true visionary, Gopi is quick to spot the next-generation technology trends and navigate the organization to build centers of excellence.

As a digital leader responsible for driving company growth and ROI, he believes in a business strategy built upon continuous innovation, investment in core capabilities, and a unique partner ecosystem. Gopi has served as founding member and 2018 President of ITServe, a non-profit organization of all mid-sized IT Services organization in US.

Vineesha Karri

Vineesha Karri

Associate Director - Marketing

Meet Vineesha Karri, the driving force behind our marketing endeavors. With over 12+ years of experience and a robust background in the B2B landscape across the US, EMEA, and APAC regions, she is pivotal in setting up high-performance marketing teams that drive business growth through a transformation based on new-age marketing practice.

Beyond her extensive experience driving business success across Digital, Data, AI, and Automation technologies, Vineesha’s diverse skill set shines as she collaborates with varied stakeholders across hierarchies, cultivating a harmonious and results-driven workspace.

Sridevi Edupuganti

Sridevi Edupuganti

Vice President – Cloud Solutions

Sridevi Edupuganti is an innovative leader known for strategically enhancing business opportunities through technology planning, orchestrating roadmaps, and guiding technology architecture choices. With a rich career spanning over two decades as a Senior Business and Technology Executive, she has driven teams to empower customers for digital transformation.

Her leadership fosters democratized digital experiences across enterprises. She has successfully expanded service portfolios globally, including major roles at Microsoft, NTT Data, Tech Mahindra. Proficient in diverse database technologies and Cloud platforms (AWS, Azure), she excels in operational excellence. Beyond her professional achievements, Sridevi also serves as a Health & Wellness coach, impacting IT professionals positively through engaging sessions.

Joel Jolly

Joel Jolly

Vice President – Technology

Joel has over 18 years of diverse global experience and multiple leadership assignments across Big 4 consulting, IT services and product engineering. He has distinguished himself by providing strategic vision and leadership for solving common industry problems on cutting-edge technologies.

As a leader surfacing and operationalizing next-generation ideas, he was responsible for exploring new technology directions, articulating a long-term technical vision, developing effective engineering processes, partnering with key stakeholders to build a strong internal and external brand and recruiting, mentoring, and growing great talent.

Haricharan Mylaraiah

Haricharan Mylaraiah

Senior Vice President - Strategy, Offerings & Sales Enablement

Hari is a Digital Marketer and Digital transformation specialist. He is adept at cultivating strong executive and customer relationships, utilizing data across all interactions (customers, employees, services, products) to lead cross-functionally as a strategic thought partner to install discipline, process, and methodology into a scalable company-wide customer-centric model.

He has 18+ years experience in Customer Acquisition, Product Strategy, Sales & Pre-Sales Management, Customer Success, Operations Management He is a Mechanical Engineering Graduate with MBA in International Business and Information Technology.