Common challenges in digitising accounts receivable and payable and how to overcome them

Published: May, 29^th 2025

Switching to digital tools for accounts receivable (AR) and accounts payable (AP) can make a huge difference for any business. Many CFO’s are now prioritising the digitisation of these processes to enhance business efficiency and boost customer relationships. However, going digital isn’t always easy. Challenges such as outdated systems, resistance to change, security concerns, and set up costs can get in the way of progress.

Despite these obstacles, the benefits outweigh the challenges, including an increase in team efficiency and improved cash flow. In fact, by implementing eInvoicing and digital payment solutions, businesses can reduce invoice processing costs by up to 81 per cent and improve payment accuracy by 75 per cent.

Interesting read: How Carpet Court embraced digital transformation

In this article, we delve into some common roadblocks business may face when looking to transform their AR and AP processes, and simple ways to overcome them. Keep reading to learn more.

Challenge

Solution

1. Legacy systems and tricky connections

Many businesses still use outdated systems, like old software or even paper files, that don’t work well with modern AR and AP software. Integrating these digital tools with existing systems and processes can be complex and time-consuming. Incompatibility between systems can also lead to data silos and operational inefficiencies.

Choose a third-party platform that easily connects with your existing accounting system (e.g., Xero or MYOB). Look for one with strong integration features to ensure a smooth and quick setup process.

Modern AR and AP software solutions can greatly improve how you manage invoices, payments, and cash flow. Think of them as a helpful addition to your current accounting system.

2. Data security concerns

When you digitise processes, your data becomes more exposed to potential breaches and cyberattacks. This is because digital data can be accessed from multiple points, making it easier for unauthorised users to exploit vulnerabilities if proper security measures aren’t in place.

Consider implementing a centralised digital system with robust security features like encryption, multi-factor authentication, and regular vulnerability testing. This will help keep your business data, including customer and payment information, safe and secure.

Beyond this, always keep your systems updated to fix any security flaws. Then, train your team on data security best practices, like spotting phishing attempts and using strong passwords.

3. People don’t like change

More than often employees will push back against new ways of doing things. They’re comfortable with the old process and worry about learning something new or making mistakes. Managing the transition to digital processes can be difficult, especially if employees are resistant to change or lack the necessary skills.

Start small and don’t roll out everything at once. The key is to keep the process as simple as possible and actively involve employees to gain their buy-in. Provide hands-on training so everyone feels comfortable with the new system.

Throughout the process, make sure to consistently highlight the benefits. Explain why the change is good for them – less paperwork, fewer mistakes, and faster payments. Once they see the benefits, they’ll be on board.

4. The initial investment is too high

The initial costs of digitising accounts processes can be quite high, covering expenses for new software, hardware, and training. This can be a significant financial burden, especially for smaller businesses that may not have large budgets. On top of this, allocating time and resources to manage the transition can further strain operations.

It’s important to focus on the long-term benefits. Start by creating a detailed plan that outlines the expected improvements in efficiency, error reduction, and data management. This will help justify the investment to stakeholders.

Next, consider implementing the digitisation in phases to spread out costs and reduce operational strain. By clearly communicating the long-term advantages, such as streamlined workflows and better decision-making capabilities, you can build a strong case for the transition and ensure everyone understands the value it brings.

Get better at business with Spenda

Digitising account receivable and accounts payable can feel like a big leap, but it’s worth it. Old systems, stubborn habits, messy data, and cash flow worries don’t have to stop you. By using the right tools, you can tackle these challenges and make your business run better than ever.

With Spenda, you can get everything you need in one place to simplify your processes and run your business more smoothly. We provide both software solutions and payment processing, streamlining your operations before, during, and after the payment event. Our platform replaces multiple systems with one solution, making transactions between businesses more efficient.

Chat to one of our team members to find out how we can help modernise your processes. 

Learn more

This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.