Accounts Receivable Challenges: What Your AR Specialists Aren't Telling You

Did you know that the number one reason why businesses fail is because of inadequate cash flow? In fact, according to a report done by Business Insider, 82 percent of small companies go under due to this very reason. Hiccups in these functions and the inability to circumvent some typical accounts receivable challenges can make or break an organization, which is why businesses must make streamlining their accounting processes a priority.

Keeping tabs on your accounting processes is a fail-proof way to safeguard your business’s financial health. If you’re a CFO, accounting executive, or the like, you know that tackling issues before the onset is key to a company’s success.

So today we’re honing in on the accounts receivable challenges that most organizations face. Read on to discover what accounts receivable challenges you might face in your office and how to prevail over them.

The Accounts Receivable Role

If you want to get paid, you need to have an effective accounts receivable process in place. Having a vast list of clients is great, but if they aren’t paying you, you could be hindering your business big time. When you aren’t getting paid on time, it’s often a symptom of a much larger issue that stems from within the accounts receivable process. Read on to see a few of the root issues and how to overcome them.

1. Accounts Receivable Data Accuracy

   Inaccurate data can delay payments by weeks. If your vendors aren’t paying you on time, or even at all, it’s time to reevaluate your ‘master’ data. In fact, getting this data wrong is more than a malfunction in the system. Problems, like the wrong address, incorrect payment terms, wrong tax rate, and more, can seriously delay your payments. And according to Deloitte, “companies have a bad habit of assuming the master system trumps all, but that’s only true if data accuracy is being maintained.” Here are a few ways to ensure your data accuracy is being managed.

   • Having a dedicated team

     Outsourcing can be your best friend here. The more specialized you can get, the better. If you’re struggling with maintaining accurate data, it might be time to rethink your team. Do you need to add team members? Does your current AR process require an all-hands-on-deck approach? If the answer is yes, it’s time to take the leap towards outsourcing.

   • Frequent audits

     If you’re experiencing everyday discrepancies in your data, it’s time to perform an audit. But not just a one-off audit that happens every year. We’re talking about daily or even weekly audits that provide insight into all accounts receivable recordings.

2. Time Management

   The struggle to stay afloat with tasks is real and one issue we can’t ignore in the AR process. It’s easy to get sidetracked at work and prolong assignments that should have been completed last week. Some people work well under pressure and others tend to have anxiety. Managing your timetable skillfully allows you to meet deadlines and improve your business’s bottom line.

   • Invest in the right tools and resources

     Time is something you can never get back in your day, so why waste it on projects that don’t take precedence? Utilizing time management tools such as Trello or Calendar can help you prioritize and track your tasks more efficiently.

   • Delegate

     Delegating tasks can keep everyone’s time management on track. Who is performing the initial invoice entry? Who is double checking for accuracy and following up on payments? If your team members are already spread thin, outsourcing might be the way to go.

3. Collectability and Bad Debt

   In an ideal world, your business would collect 100% of the amounts invoiced. Unfortunately, this isn’t reality. Bad debt is an inevitable part of running a business and your team needs to know when it’s time to throw in the towel. For large amounts, it might make sense to take the customer to court. However, for small expenses, it might be easier to write off the amount and move on. Before you think about writing off debt, you should follow your collection policies.

   • Define Processes

     On a regular basis, your collectability processes should be reviewed. Are customers requesting different payment methods? How often is your team following up on outstanding invoices?

These three accounts receivable challenges can lead to delays in cash inflows, strained customer relationships, and more if not handled properly. If your team doesn’t have the capacity to effectively manage accounts receivable, it might be time to pass the baton to the outsourcing experts.

Read More: Top Mistakes In The Accounting Process (& How To Fix Them)

Turn Accounts Receivable Challenges into Cash Flow Wins with Personiv

At Personiv, we help finance leaders transform their Accounts Receivable operations from reactive to revenue-driving. Our dedicated AR teams combine deep accounting expertise with AI and automation tools that streamline collections, reduce DSO (days sales outstanding), and improve visibility across the entire receivables cycle.

Here’s how we make a measurable impact:

• Faster collections: Accelerate cash inflows with proactive follow-ups and intelligent automation.

• Improved accuracy: Eliminate manual errors with structured processes and continuous audits.

• Scalable teams: Add skilled AR specialists when you need them—without the overhead.

• Stronger relationships: Enhance customer experience through consistent communication and timely resolution.

• Better forecasting: Real-time dashboards and reporting deliver the visibility CFOs need to make smarter cash decisions.

Whether you’re a growing business or an established enterprise, our accounts receivable outsourcing services are designed to fit seamlessly into your systems and scale as you do. See how Personiv can help you unlock working capital and strengthen your cash position.