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Heroes of AR: Why Accounts Receivable Management is Mission-Critical for CFOs

Author:
Pradyut Hande
August 12, 2025
Designed by:
Dhanush R

We are amidst a global economic slowdown, rising capital costs, and market volatility. Cash is no longer just king. It’s the kingmaker.

And; nowhere is that pressure more visible than in Accounts Receivable (AR). Once seen as a reactive, back-office function, AR is being thrust into the strategic spotlight. For today’s CFOs, it has become a critical lever for driving operational efficiency, preserving working capital, and unlocking growth. Even when everything else is slowing down.

That’s also the rationale behind kickstarting our thought leadership interview series - Heroes of AR. Through this we spotlight the unsung heroes behind AR, explore its strategic evolution, break down what it takes to thrive in today’s volatile financial climate, and outline the enhanced role of AI in AR.

In our debut episode: Pradyut Hande, Associate Director of Product Marketing at Growfin sits down with Aravind Gopalan, Co-founder and CEO of Growfin. Dive into the key mindset shifts, operational transformations, and rescripted AR management playbooks required to achieve business survival and growth below. 

The Economic Reality: Capital is Expensive, Customers are Cautious

PH: In the recent past, the World Bank has cut the average global growth rates by 2.3%, and it’s the lowest forecast since 2008, which also makes this particular decade one of the slowest in terms of growth since the 1960s. And of late, the Federal Bank has also increased interest rates. In such an economic climate, what makes AR the most critical function in terms of present-day finance? 

AG: There are so many things happening across the world: tariffs, inflation, wars. This environment has forced enterprises, especially CFOs, to care deeply about two things: The cost of capital and the cost of goods.

What used to be easily accessible like capital for growing companies, public companies, or private equity has now become significantly more expensive. Whether you're raising capital or borrowing, interest rates have made the cost of capital shoot up. That puts immense pressure on enterprises to manage their working capital and cash flow with much greater discipline.

On top of that, there’s inflation. If you're in manufacturing or even services, the cost of goods has risen sharply. So; now you’re dealing with higher input costs and more expensive capital. It’s a tricky situation and it’s not just a short-term problem. This could very well last for the next few years. This is the reality we’re operating in.

Which brings me to Accounts Receivable (AR). Every business that wants to streamline its working capital and cash flow has to pay close attention to treasury operations: both cash inflow and cash outflow. While companies are already being cautious about spending, the same discipline is now required on the inflow side. That puts a huge spotlight on AR.

Controllership and AR become absolutely critical to understand: 

  • Collections efficiency
  • AR ledger management 
  • Responsiveness to customer payment behaviors

If your company is tightening spending, you can safely assume your customers are doing the same. That makes it even more important to prioritize AR, understand where the risks lie, and act fast.

In this climate, the strategic role of the CFO is at an all-time high. Managing cash flow and working capital through the levers available, especially AR, is no longer optional. It’s essential. Balancing those levers is what’s going to define who thrives and who struggles in the years ahead.

TL;DR:
The current macroeconomic climate is not business as usual. We're seeing:

  • The slowest global growth forecasts since the 1960s
  • Unrelenting inflation and rising cost of goods
  • Tighter access to capital due to elevated interest rates
  • Ongoing trade and geopolitical disruptions

All of this has radically shifted enterprise priorities. Growth at all costs is no longer sustainable. Profitability, cash flow, and capital discipline now sit at the top of every CFO’s agenda.

And; AR is the linchpin. As you can’t manage cash flow without managing collections.

Why AR is the New Strategic Function

PH: There are AR functions that often try to solve the collections challenge by simply scaling headcount. So, in the quest to improve collection efficiency and reduce DSO, how do AR operations factor into the picture?

AG: Traditionally, AR has always functioned as a back-office operation. But; it’s now becoming far more critical. This shift gives Controllers an opportunity to earn a seat at the table and to think more strategically about these things:

Firstly, how do we drive efficiency in AR operations, especially in this climate?

That has two levels of impact to consider:

  • How much are you spending or investing to ensure collections happen faster?
  • How efficient are your current operations when it comes to managing collections, growth, and customer experience?

Secondly, AR is one of the few functions under the Office of Finance that is actually customer-facing. It’s not just about managing ledgers or finances anymore. It’s about:

  • Working with customers directly
  • Managing the customer experience
  • Balancing growth with financial discipline
  • Aligning operational execution with collection goals

That means collaborating with customer-facing teams to:

  • Define the right collection strategy per customer
  • Set the right expectations
  • Identify payer risk early
  • Still deliver a strong customer experience even when following-up on payments

So; today, AR operations play a critical role - especially in this macroeconomic climate. It all comes down to how well you're balancing collections efficiency with customer sensitivity, and how efficiently you can run that process overall.

Which is why AR teams and controllers are stepping into a much more strategic role. It’s no longer just the back office; but it's front and center.

TL;DR:

Too many companies still treat AR as a ledger maintenance team. But in today’s macroeconomic climate and volatile market scenario, AR teams are:

  • Directly influencing cash inflows
  • Interfacing with customers to shape payment behavior
  • Delivering insights that drive strategic decision-making
  • One of the few finance functions that’s customer-facing - which makes it a powerful touchpoint for protecting revenue and relationships

That’s why progressive CFOs are elevating AR operations from a transactional back office to a strategic partner - one that aligns collections efficiency with customer experience.

Stop Measuring Growth by Revenue Alone

PH: Given the current macroeconomic climate;  where liquidity is tightening, teams are getting leaner, collections are freezing up, and predictability is sketchy - What shift in mindset would you recommend for CFOs and Controllers to transform AR into a true strategic catalyst for both internal and external growth?

AG: I’ve had the opportunity to work with some incredible CFOs and speak with Controllers who are truly strategic. I’m seeing this shift become even more prominent now.

Through those conversations; I’ve realized: If you’re not collecting cash, what’s the point of driving paper revenue?

That mindset shift - viewing growth not just through the lens of bookings but through actual cash realization - is becoming critical. And; I strongly recommend that more CFOs adopt this approach going forward.
CFOs and Controllers are being pushed to look at the business end-to-end. Not just how much pipeline is generated, or how much revenue is booked. But; how much of that turns into collected cash.

Today; many businesses lack that full-funnel visibility. They can’t trace their growth story from pipeline to revenue to actual cash in the bank. And; that’s where CFOs have a huge opportunity to play a more strategic role in aligning business decisions with cash flow realities.

They need to partner closely with CROs and CEOs to plan where the company should invest next. That planning must include a deep understanding of AR performance and its impact on cash flow.

In today’s market, it’s imperative to view your business through this holistic lens. That kind of visibility drives better operational efficiency and closes the gap between customer-facing  and AR teams.

It’s about managing customer experience and collections in tandem. It’s about defining your ICP; not just by revenue potential, but; by cash flow contribution.

So my recommendation to CFOs is this:
Stop looking at the business purely through a revenue lens. Start looking at it in entirety. From pipeline to payment, because that’s where the real levers for sustainable growth lie.

TL;DR:

Revenue without collection is just paper growth.

We’re seeing a clear shift from measuring success by bookings to tracking the full journey from pipeline → revenue → collected cash. That final leg - the conversion of revenue into cash -  is often the biggest gap in finance visibility.

The best CFOs today are asking:

  • Which segments are high revenue, but low realization?
  • Where is our cash conversion cycle breaking down?
  • How do we optimize our resource allocation based on cash flow, not just ARR?

This mindset shift is redefining what "growth" really means.

AI Strategy isn’t Just Hype. It’s the Efficiency Engine of the Future

PH: AI is no longer just a buzzword. It’s been driving momentum in tech and SaaS for the last seven to eight years and is now making its way into AR. But; the complexities of AR go far beyond layering intelligence on top of automation workflows. These challenges are compounded by the unique behavioral patterns of every customer. So; how can a thoughtful AI strategy truly strengthen and elevate AR operations at a broader level?

AG: This is a favorite topic of mine. I had to bring it up. What excites me today is how fast AI is evolving and the fact that I get to apply it to help make AR teams the heroes. That’s incredibly fulfilling for me.

How can AI influence AR?

I see it in two broad ways.

Firstly, the macro lens: As a business, especially in this market, a CFO is thinking: “How do I control spending? How do I manage capital more effectively?”

But; remember: Your AR is your customer’s Accounts Payable (AP). So they’re thinking the same way. They’re deciding where you rank as a vendor in their payment priority stack.
Are you critical to them? Are you a “pay now,” “pay later,” or “hold” vendor?

It becomes absolutely essential for AR teams to evaluate each customer individually, understand their situation, how they operate, and what kind of relationship you have with them. 

AR teams need to assess: Their importance to a particular customer and their ability to tailor their collections approach based on that understanding

Now here’s the catch - you have to do this at scale.

If you’re a growing business with thousands of customers, how do you manage this complexity?
You have a few options:

  • Hire more people - but; that’s costly
  • Automate with rule-based workflows - can’t adapt to nuance and elevated context; OR
  • Harness AI to apply intelligence at scale

With how far AI has come; businesses can now understand customer risk at a granular level, across the entire AR portfolio. 

You can assess behavioral patterns over time:

  • How did a customer pay last quarter vs. now? 
  • What does that trend say about risk? 
  • How should that influence credit terms or follow-up strategy?

AI allows you to predict and manage this risk at scale. And; once you understand that, you can automate the right actions with more precision. This shifts the collections model from templatized to personalized. Now; imagine scaling that across thousands of customers. That’s where AI is a game-changer. It reads behavior, identifies risk, and helps you tailor your strategy to every customer.

Secondly, the micro lens: CFOs are starting to look at their business end-to-end. AI-powered analytics can now offer insights across the funnel:

  • Which segments are driving revenue?
  • Which ones are actually bringing in cash?
  • Where do you dial up investment and where do you pull back?

So; AI isn’t just about collections efficiency. It’s helping guide strategic business direction.

Let’s also clear up one major confusion: AI is often mistaken for agentic intelligence. AI helps with prediction, optimization, and insight. But; Agentic AI augments your team’s ability to execute. It doesn’t replace your collectors, it makes them 2x more efficient.

Let’s also clear up another myth: AI will replace AR teams. It won’t. AR teams are becoming more strategic than ever. They’re no longer just managing ledgers, they’re driving cash flow, customer relationships, and strategic business outcomes.

So behavioral signal-led AI and agentic intelligence together enable two things:

  • They help AR teams operate more efficiently and strategically
  • They elevate the function from the  back office to the boardroom

That’s why we’re investing in it. Because this is how businesses will start treating AR as a strategic growth lever, not just a collections function.

TL;DR: 

AR operations aren’t just ripe for automation. They’re perfect for intelligence.

But; AI in AR isn’t about replacing humans. It’s about:

  • Understanding customer payment behavior at scale
  • Predicting delinquencies before they happen
  • Personalizing collection strategies for every customer profile
  • Elevating risk-based decision-making across the portfolio

Imagine your AR team not just reacting to overdue invoices, but preemptively flagging high-risk accounts, adjusting terms, and triggering the right follow-ups. All powered by behavioral insights.

This is the Agentic AI model: One that augments collectors, not replaces them. It makes teams 2-3x more efficient while freeing them to handle exceptions and strengthen customer relationships.

The 2020s Demand a New Playbook

PH: We’ve established that we’re in the middle of a global economic slowdown, and things are only going to get tougher. There’s growing credit stress, multi-market shocks, and tighter cash flows. Given that, we’ve already talked about what leaders and AR functions need to be doing right now. Are there actions they can take today to optimize accounts receivable, especially since AR automation and intelligence also provide cash flow predictability in times like these?

AG: You’re absolutely right. In a market like this, cash is king. Actually, it has become the kingmaker. That makes the CFO’s role more critical than ever in how they structure the business moving forward.

One lens I’ve been watching closely is this: the days of growth at all costs are over.

Businesses are prioritizing profitability, tightening cash, and focusing on how to balance growth with working capital and spend discipline. That shift forces leaders to rethink every strategic investment they make.

The templates that worked in the past are no longer valid. Business leaders, CFOs, COOs, CROs - none of them can afford to operate the way they did in the 2010s. The 2020s are different. And we need to rewrite the playbook.

And; once you start rewriting the playbook, you have to redefine what efficiency even means.
What passed for operational efficiency in 2015, won’t cut it in 2025. You have to look at how you manage investments and how you balance risk with returns. That requires a different mindset entirely.

In the past, revenue-generating functions like the CRO or COO may have led the table. But now; the CFO needs to be an equal voice. You can’t make investment decisions without them. The CFO is no longer just a support function. It’s not about saying, “Here’s what we want to do in Europe, can you approve the budget?” It’s about asking, “How do we manage the risk of that investment? What are the projections? What’s the long-term plan?”

So; FP&A becomes a critical function in balancing risk and investment, not just for the year ahead, but for three to five-year planning.

The second part is operational efficiency. What worked five or ten years ago won’t work today.
If you don’t rethink how your business runs, your competitors will. And; businesses that don’t evolve will be left behind. That’s where technology plays a massive role. We’re in the middle of an evolutionary shift in how companies operate. 

And technology, especially AI, offers not just 10-20% improvements; but it can drive 2-3x efficiency gains. This isn’t incremental change. It’s a fundamental reset.

Business survival and growth will depend on how quickly and effectively they adopt AI. The companies that thrive in this environment will be the ones that grow while maintaining a new scale of efficiency, powered by smart technology.

Every CXO now plays a role in this transformation. Every operator is accountable for driving meaningful, measurable efficiency.

TL;DR: 

Legacy processes, siloed teams, and templatized collections strategies are fast becoming obsolete. In their place, companies need:

  • Real-time visibility from pipeline to payment
  • Strategic collaboration across finance, sales, and operations
  • AI-enabled insights that drive faster, smarter decisions

We’re witnessing a fundamental reset in how companies operate. The finance function - especially AR - can no longer afford to be reactive. It must lead the charge.

5 Strategic Takeaways

  1. In today’s macroeconomic climate, CFOs must manage both capital and costs with precision. AR plays a vital role in this by directly influencing cash inflow. Efficient collections and AR ledger management are now critical to survival
  2. Growth can no longer be measured by revenue alone. Companies need to track the entire journey, from pipeline to booked revenue to cash collected. CFOs must work closely with CROs and CEOs to allocate resources based on cash flow performance, not just topline growth
  3. AI in AR is about more than streamlining workflows. It helps identify customer payment behavior, predict collection risks, and personalize dunning strategies at scale. This empowers teams to move from template-driven to insight-driven operations
  4. What worked in 2015 won’t work in 2025. Businesses must redefine operational efficiency by aligning every department with real-time data and predictive insights. The shift is from legacy thinking to strategic agility
  5. Agentic AI augments, not replaces, AR teams. It enables collectors to operate at 2x or 3x efficiency, freeing them up to handle exceptions, build customer relationships, and contribute to long-term strategy

🔊 Watch to the full episode of “Heroes of AR” to hear more from Aravind Gopalan on transforming AR management in the present and the future.

🎧 https://www.youtube.com/watch?v=z5Fe6GsCwU0

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Pradyut Hande
Growfin
Associate Director, Product Marketing
Seasoned B2B SaaS storyteller turning jargon into revenue and feature dumps into fan clubs. Runs on energy drinks, bold ideas, and dwindling tolerance for boring marketing.