“We put our current system in because of Y2K.”

We recently spoke to Accounts Receivable (AR) professionals across the industry to discover the state of play today for this vital business function. And this quote from someone we spoke to really got me thinking.

In today’s volatile business landscape, most CFOs are laser-focused on protecting revenue, managing liquidity and reducing operational risk. But there’s one vital function that remains dangerously overlooked: Accounts Receivable (AR).

AR teams sit at the heart of a company’s cash flow. They’re responsible for ensuring invoices go out accurately, payments come in on time, and revenue forecasts reflect reality. But in many businesses, they’re working with outdated tools, manual processes and systems that haven’t changed in decades.

And all of this presents a huge problem – not just for efficiency, but for cybersecurity.

AR teams handle sensitive data every day. And the systems they use are packed with bank details, payment records, invoice histories, and customer information. Yet they’re rarely front of mind when it comes to digital transformation strategies or investment. This combination of high data value and low priority could make your AR function an attractive target for cybercriminals.

As our whitepaper “Vital Yet Neglected” due to be released later this month, makes clear, legacy finance systems and manual processes are fast becoming a business risk. When platforms aren’t properly maintained and processes not effectively updated, vulnerabilities creep in. And when those platforms house your receivables data, the implications can be severe.

 

Outdated systems, outdated thinking

Despite the risks, many finance leaders still see AR as a “run in the background” function – something that just happens, until it doesn’t. And when it fails, it fails visibly: unpaid invoices, rising bad debt, delayed cash flow, and missed targets.

But the bigger issue is that AR systems are too often left out of digital transformation plans. Some industry research tells us that 35% of businesses haven’t automated AR at all, and nearly a quarter still rely on spreadsheets; other studies put these numbers as much higher!

That’s not just inefficient – it’s a significant vulnerability. A static system built to manage billing five years ago can’t protect your business from the cyber threats of today, and the longer organisations delay modernisation, the greater the exposure.

 

Modern AR is a strategic imperative

It doesn’t have to be this way. With the right investment, AR can transform from a risk into a competitive advantage.

Modern receivables platforms use AI and machine learning to flag payment anomalies, detect fraud, and forecast collection dates. They integrate seamlessly with existing systems, automate repetitive tasks, and provide real-time dashboards that give finance leaders a clear view of risk and performance.

Moving to a cloud-based system amplifies these benefits. Unlike traditional deployed software, cloud platforms are easier to maintain and upgrade – especially when it comes to applying security patches. They’re also more intuitive for teams to use, which is essential at a time of high staff turnover and shrinking training budgets.

Most importantly, they help secure and control data – using tokenisation and encryption to protect it from both external threats and internal misuse.

 

The cost of standing still

What holds most companies back? Inertia. The sense that if it isn’t broken, it doesn’t need fixing. But legacy systems come with manual intervention and hidden costs: rising bad debt, missed KPIs, slower cash collection, and increased cyber exposure.

Worse, when these systems finally fail – or fall victim to an attack – the consequences aren’t just financial. They’re reputational and operational too.

 

Time to elevate AR

It’s time to ask the hard question: are you investing in AR for the future – or just hoping for the best?

The risks are real. But so are the rewards.

  • Faster, more accurate collections
  • Stronger customer relationships
  • Clearer insight into risk
  • Tighter data protection and compliance
  • And a finance function that’s fit for the modern world

If your AR systems and processes haven’t been reviewed in the past two years – let alone since the 1990s – now’s the time. Not just to defend against cyber threats – but to unlock the insight and efficiency your team needs to thrive.

Ready to modernise your receivables and reduce risk? Get a head start and register for the fireside chat that will feature me, the University of Lancashire and EDF, elf, the University of Lancashire and EDF where we’ll discuss the findings of “Vital Yet Neglected”.