Finance leaders must stay ahead by optimizing their accounts receivable (AR) processes. One critical metric in this space is Days Sales Outstanding (DSO), which measures the average number of days it takes for receivables to convert into cash. A higher DSO not only ties up precious working capital but also signals potential inefficiencies in collections. Fortunately, modern AR automation platforms offer a technological edge to streamline collections and reduce DSO. In this comprehensive review, we'll explore the top AR automation software solutions that are transforming cash collections in 2025. We'll review their key features for accelerating cash collections, dive into pricing models, and provide actionable insights to help CFOs and finance leaders choose the right platform for their needs.

The Importance of AR Automation in Reducing DSO

Understanding DSO as a Critical KPI

Days Sales Outstanding (DSO) directly impacts an organization's cash flow. A lower DSO means your company converts credit sales into cash faster, enhancing liquidity and providing a buffer against unexpected expenses. AR automation solutions help achieve this by: 

• Automating repetitive tasks like invoicing and payment reminders
• Providing real-time visibility into outstanding receivables
• Identifying at-risk accounts early to prompt proactive follow-ups

The Role of Technology in Financial Operations

The evolution of technology in finance has paved the way for automation that minimizes manual errors and augments strategic decision-making. Modern AR automation platforms integrate with accounting systems, ERP solutions, and CRM software to provide a holistic view of financial operations. This integration allows for accurate, timely insights into cash flow trends and actionable intelligence for collection efforts.

Top AR Automation Software Solutions in 2025

1. Tesorio

Overview: 
Tesorio leads the field with its AI-driven Connected Financial Operations platform. Specializing in cash flow optimization and AR automation, Tesorio uses machine learning algorithms to predict payment behaviors and reduce DSO dramatically.

Key Features: 

• AI-Powered Collections – Predict and prioritize at-risk accounts to reduce DSO.
• Real-Time Dashboards – Monitor AR performance with dynamic visualizations.
• Seamless Integrations – Connects with popular ERP, CRM, and banking systems for unified insights.
• Automated Payment Reminders – Schedule automated reminders to streamline collections.

Pricing Model: 

Tesorio offers customized pricing based on the scale and complexity of a client's AR operations. With a subscription-based model, pricing is tailored to align with the client's volume of transactions and the desired level of automation.

Pros: 

• Highly scalable for mid-size to large enterprises.
• Robust integration capabilities.
• AI-driven analytics provide deep insights.

Cons: 

• May be a larger investment for small businesses with limited AR volumes.

2. YayPay

Overview: 

YayPay focuses on automating the entire AR process—from invoice generation to collections. Its user-friendly interface and comprehensive functionality empower finance teams to reduce DSO efficiently.

Key Features: 

• Automated Invoice Delivery – Generate and send invoices automatically.
• Payment Tracking – Monitor payment statuses in real time.
• Customizable Dashboards – View key AR metrics and trends at a glance.
• Customer Communication Tools – Integrated features that facilitate efficient follow-up.

Pricing Model: 

YayPay’s pricing is tiered depending on the features and volume requirements. Their competitive pricing model is especially attractive to mid-sized businesses focused on rapid implementation and ROI.

Pros: 

• Intuitive user interface that minimizes training time.
• Strong support and customer service.
• Scalable as your company grows.

Cons: 

• Some advanced analytics features may require higher-tier plans.

3. HighRadius

Overview: 

HighRadius offers an end-to-end receivables management solution that leverages AI and machine learning to automate AR processes. Known for its comprehensive suite of tools, HighRadius is designed to optimize working capital and accelerate cash collections.

Key Features: 

• Intelligent Automation – Streamline invoicing, payment reminders, and collections through AI.
• Integrated Cash Application – Reconcile payments quickly and accurately.
• Advanced Analytics – Dive deep into receivables trends with powerful analytics tools.
• Mobile Accessibility – Access AR data on the go through a dedicated mobile app.

Pricing Model: 

HighRadius provides bespoke pricing solutions based on the unique needs of every client. Their model considers transaction volumes, integration requirements, and the level of AI capabilities needed.

Pros: 

• Comprehensive, end-to-end AR solution.
• High degree of automation reduces manual intervention.
• Strong performance in large enterprise environments.

Cons: 

• Implementation may be complex for smaller organizations.
• Higher investment required compared to entry-level solutions.

4. Invoiced

Overview: 

Invoiced specializes in simplifying the invoicing and collections process with automation designed to reduce DSO. Its streamlined approach is particularly effective for SaaS companies, professional services, and small-to-medium enterprises.

Key Features: 

• Automated Invoicing – Schedule and deliver invoices automatically to reduce delays.
• Integrated Payment Portals – Offer customers easy payment options directly within invoices.
• Recurring Billing Management – Manage subscription-based or contract billing.
• Self-Service Portals – Allow customers to track and manage their accounts online.

Pricing Model: 

Invoiced offers flexible pricing plans including pay-as-you-go options and subscription models. This variety makes it an attractive option for businesses looking for scalable solutions without a steep upfront investment.

Pros: 

• Extremely user-friendly with a clean interface.
• Fast to deploy and easy to integrate with existing systems.
• Flexible pricing options suitable for growing businesses.

Cons: 

• May have limited advanced analytics for very large or complex AR operations.

5. Billtrust

Overview: 

Billtrust combines digital invoicing with automated workflow tools to reduce DSO and streamline collections. With a focus on reducing manual tasks, Billtrust aims to improve operational efficiency for businesses of all sizes.

Key Features: 

• Streamlined Invoice Management – Automate the invoicing process from start to finish.
• Data-Driven Insights – Utilize advanced reporting to closely monitor AR performance.
• Payment Processing Integration – Seamless integration with payment processors to facilitate quicker collections.
• Customer Portal – Empower customers with a self-service portal that simplifies payment processes.

Pricing Model: 

Billtrust typically offers a subscription-based pricing model with customizable packages based on transaction volume and desired automation features. They target a range of companies from mid-sized businesses to large enterprises.

Pros: 

• Enhances customer experience with digital payment options.
• Robust reporting and analytics capabilities. • Flexible integration with various financial platforms.

Cons: 

• Implementation complexity may vary based on the company's existing systems.
• The pricing structure may be on the higher side for smaller companies.

Key AR Software Features for Faster Collections

1. Automation of Invoicing and Payment Reminders Automated invoicing eliminates manual creation and sending of invoices, which prevents delays that extend DSO. Consistent, automatically scheduled reminders ensure prompt follow-up on outstanding payments.
2. Real-Time Data and Dashboards Modern AR automation solutions provide real-time dashboards with up-to-date insights on outstanding receivables. This empowers finance teams to quickly identify bottlenecks and make agile, data-driven decisions.
3. Predictive Analytics and AI-Driven Insights AI-powered platforms like Tesorio and HighRadius predict payment behaviors and identify at-risk accounts. This proactive approach allows finance teams to focus on collections before receivables age into problematic territories.
4. Integration Capabilities A solution that integrates seamlessly with ERP, CRM, and accounting systems ensures a unified data flow, reducing redundancies and improving overall data accuracy.
5. Customer Self-Service Portals Self-service portals empower customers by giving them direct access to manage invoices, make payments, and review account history. This not only speeds up collections but also enhances customer satisfaction.

Pricing Models Comparison

Understanding Pricing Models AR automation software pricing typically falls under three main categories: 

• Subscription-Based Pricing – Often tiered based on transaction volume, feature set, and support level.
• Pay-As-You-Go – A usage-based model where costs align with actual transaction volumes, ideal for growing companies.
• Custom Pricing – Bespoke solutions for larger enterprises with complex needs, determined after assessing AR volume and requirements.

Comparative Analysis: Tesorio, HighRadius, and Billtrust tend to offer enterprise-level, customized pricing for high transaction volumes and robust integration needs. YayPay and Invoiced, on the other hand, cater to mid-sized and growing businesses with scalable, tiered pricing plans and pay-as-you-go options.

Important Considerations: 

• Scale of Operations – Small businesses may benefit from pay-as-you-go or lower-tier subscriptions, while larger organizations might find custom pricing more advantageous for long-term ROI.
• Required Features – Comprehensive AR automation platforms generally command higher prices but deliver advanced functionalities crucial for reducing DSO.
• Integration Needs – A solution that integrates well with existing financial systems can lower both initial setup costs and ongoing operational expenses.

Making the Right Choice for Your Business

Steps to Evaluate Your Needs:

1. Assess the Complexity of Your AR Process: Consider transaction volume, variability in customer payment behavior, and current DSO. A complex AR process may require a robust solution like Tesorio or HighRadius.
2. Identify Key Features That Align With Your Objectives: If accelerating cash collections is a priority, focus on platforms with strong AI-driven collections and real-time dashboards.
3. Evaluate Your Budget and ROI Expectations: Compare the potential savings from reduced DSO against the investment required for the AR automation solution.
4. Consider Integration and Scalability: Ensure the chosen solution integrates seamlessly with your current financial systems and can scale with your growth.

Case Study Snapshot: Real-World Impact A mid-sized manufacturing company implemented an AI-driven AR automation solution and reduced its DSO by an impressive 12 days. This reduction unlocked significant working capital, enabling the company to invest in new product lines and enhance market competitiveness.

Future Trends in AR Automation

1. Increasing Role of AI and Machine Learning Expect more precise forecasts of receivables behavior as AI continues to evolve, further reducing DSO and enhancing cash flow management.
2. The Rise of Integrated Financial Operations Platforms Next-generation solutions will likely integrate collections, cash application, and forecasting into a single unified interface.
3. Enhanced Customer Engagement Tools Future platforms will emphasize proactive customer engagement with deeper self-service capabilities and personalized communication.
4. Cloud-Native Solutions and Scalability Cloud-based AR automation solutions will offer greater scalability, security, and accessibility without heavy IT investments.

Conclusion: Reducing DSO is a Strategic Imperative

AR automation solutions provide the tools needed to streamline invoicing, accelerate collections, and improve overall financial agility. Whether you're a small business seeking a cost-effective, easy-to-deploy platform or a large enterprise looking for a robust, integrated system, there is an AR automation solution tailored to your needs.

From Tesorio's AI-driven platform to YayPay’s user-friendly interface, the AR automation landscape in 2025 offers diverse tools with varied features and pricing models. By carefully assessing your organization's needs, evaluating key features, and considering long-term ROI, you can select the solution that best aligns with your strategic objectives for cash flow optimization.

Key Takeaways: 

• Reducing DSO is critical for unlocking working capital and enhancing financial agility.
• Top AR automation platforms offer advanced features like AI-driven collections, real-time dashboards, and seamless integrations.
• Pricing models range from subscription-based to pay-as-you-go and custom solutions, catering to businesses of all sizes.
• Future trends point to increased integration, enhanced customer engagement, and more precise predictive analytics.

Ready to take control of your cash collections and reduce DSO? Evaluate the leading AR automation tools and book a demo from platforms like Tesorio to see firsthand how advanced AR automation can transform your receivables process and accelerate your business growth.

FAQs

What is automated collections, and how does it help businesses? 

Automated collections streamline AR processes by using AI-driven workflows to send reminders, track payments, and escalate overdue invoices, significantly reducing manual work and lowering DSO.

How does Tesorio's automated collections process work? 

Tesorio automates tasks like invoice follow-ups and customer segmentation based on payment behavior, ensuring personalized reminders and prioritizing high-risk accounts to accelerate collections.

How does automation impact DSO? 

Companies using automation see dramatic improvements in cash flow; Tesorio customers, for instance, have reported reductions in DSO by an average of 33 days.

Can AR automation software predict late payments before they happen? 

Yes, AI-powered platforms analyze payment trends and predict at-risk accounts, enabling finance teams to take proactive action before invoices become overdue.

What kind of payment reminders does AR automation software provide? 

Automation platforms manage a range of reminders including pre-due notices, overdue escalations, and final demand notifications to keep customers engaged and prompt timely collections.

How does AR automation integrate with existing finance systems? 

Modern AR automation solutions integrate seamlessly with ERP, CRM, and accounting software, ensuring that billing and collections processes sync in real time.

What key performance metrics should be tracked with AR automation software? 

Look for dashboards that monitor DSO, collection efficiency, overdue balances, and high-risk accounts to gain real-time insights into your collections performance.

How quickly can businesses see results after implementing AR automation? 

Most businesses experience a noticeable improvement, with a 20-50% recovery in overdue payments within the first three months, bolstering overall cash flow.

Empower your finance team, streamline your AR processes, and position your business for sustained financial success by choosing the right AR automation solution today.