B2B Accounts Receivable (AR) is undergoing a quiet revolution, vertical by vertical.
Another former back-office drudge, AR is now starring as a strategic lever for cash flow, customer satisfaction, and organizational resilience. That and more is captured in the new report, “Vital Yet Neglected: Why It’s Time to Rethink Accounts Receivable,” containing AR insights from the UK that apply globally.
An expert panel recently dissected the report. That exchange of AR vertical viewpoints brought together Nicholas Brierley, Head of Financial Operations at the University of Lancashire; Simon Durrant, Product Owner of Payments and Collections (UK) at utilities provider EDF; and Richard Ransom, Solution Consulting Leader at Bottomline, with moderation by Pete Marcus of marketing firm Delphi.
Talk began with the fact that invoice volumes keep rising, but many organizations continue relying on outdated systems, creating a gap between operational demands and technological capabilities. It’s one of several ironies about the AR function that emerged.
Brierley noted that underinvestment in AR can lead to skills gaps and missed opportunities, as AR teams are called upon more to act as an ‘early warning system’ for financial health. In the utilities sector, Durrant observed that the recent ‘perfect storm’ has driven a rise in customer debt, forcing companies to ditch a ‘good enough’ approach and instead demand a step change in both technology and process.
Then there’s the untapped potential of AR data. Ransom invoked the wisdom of “you can’t manage what you can’t see,” stating that unlocking receivables data is key to better forecasting and customer insight. The consensus is that AR is not just about collecting payments. It’s also about relationships, managing risk, and strategic value.
Panelists also agreed that the future of AR lies in vertical specialization, where solutions are tailored to the unique needs of sectors (like education, utilities, councils, insurance, charities, subscription-based organizations, etc.).
For business payments professionals, this means rethinking AR as a dynamic, customer-facing function that requires both technological investment and a human touch.
AR as Vertical Business Enabler
Despite a general acknowledgement that AR is playing a more critical role than ever, the function remains underappreciated in many companies. Brierley pointed out that AR’s role in cash and income generation is “absolutely critical to the business,” but that this importance is often overlooked (until something goes wrong).
He added that investment in both technology and people is essential, as “upskilling your staff is critical to the modern-day AR team.”
Durrant echoed the sentiment, noting that in the utilities sector, the conjunction of the pandemic, the energy crisis, and current cost-of-living pressures has exposed the limitations of legacy systems. “For many years, a lot of companies could get away with a good enough approach when it comes to AR. Now… that approach has changed,” he said.
Taken together, these factors erode the perception of AR as just a cost center. As verticals modernizing this function realize, it’s not just about efficiency, but also resilience and trust.
Education and Utilities: Vertical Specialization in Action
In the education sector, Brierley described how AR is integral to engaging a diverse range of stakeholders, from students to sponsors to commercial partners.
“For us, that frontline engagement… is absolutely critical,” he said, accenting the need to free up staff for high-value, face-to-face interactions by automating routine tasks.
For utilities, Durrant hammered the point of data-driven, customer-centric AR processes. “Data is key and needs to be at the heart of any proactive approach,” he said, stressing the value of personalized customer journeys and ongoing investment in staff training.
Within verticalized payments journeys, the human touch remains vital, even as automation and AI become more prevalent.
Warning against the dangers of clinging to manual processes, Ransom argued that technology should be used to prioritize where human intervention is most needed, allowing staff to focus on complex, value-adding tasks.
Brierley and Durrant both agreed, saying that automation can handle routine inquiries, but that skilled staff are necessary for managing sensitive or complex customer situations. “It’s about investing where that’s needed, because there are always going to be those points where that human touch or that helping hand is really critical,” Brierley said.
Data, KPIs, and the Future of AR
There is growing agreement that AR teams must become more data-driven and strategic. Durrant described how EDF uses new platforms and analytics to track the effectiveness of different customer experiences and to gather feedback for continuous improvement.
“We still have our high-level KPIs as a business… but where we’ve tried to actually show the value of what we’re doing differently is really pin down KPIs [and measuring] those things we’re doing differently,” he said.
Ransom predicted significant changes in payments over the next five years, urging organizations to stay informed and adaptable. “Keep changing what you need to change. Don’t wait for payments to change,” he said, highlighting the need for long-term planning and awareness of industry trends.
It’s a core takeaway from “Vital Yet Neglected: Why It’s Time to Rethink Accounts Receivable.” The report illustrates how verticalized, technology-enabled AR solutions, grounded in data and delivered with a human touch, are now indispensable for driving value, resilience, and customer satisfaction in a dynamic environment.