Today, we’re thrilled to sit down with Kofi Ndaikate, a seasoned expert in the fintech arena with deep knowledge in areas like blockchain, cryptocurrency, and financial policy. With a sharp focus on transforming traditional financial processes, Kofi brings invaluable insights into how modernizing accounts receivable (AR) can reshape liquidity, customer relationships, and operational success for businesses. In this conversation, we’ll explore why AR is often misunderstood as a burden rather than an asset, how it can unlock trapped cash for growth, and the ways it influences customer loyalty and internal efficiency when approached strategically.
How do you see accounts receivable being misperceived as a drain on resources rather than a potential strength for companies?
Many companies view AR as a necessary evil—a back-office function that just tracks money owed. But that mindset misses the bigger picture. When AR is managed poorly with outdated systems, it ties up cash, slows down operations, and frustrates customers with delays or errors. In reality, AR is a goldmine of working capital if handled right. Modern tools can turn it into a source of immediate liquidity and a way to build stronger customer ties, flipping the narrative from burden to strategic asset.
What does AR modernization mean to you, and why has it become such a pressing issue for financial leaders today?
AR modernization is about more than just going digital with invoices. It’s a complete overhaul of how data, systems, and people interact within the AR process. This means integrating automation, real-time analytics, and customer-focused solutions to streamline everything from credit decisions to collections. It’s critical now because CFOs are under pressure to free up cash for growth, especially in volatile markets. With billions tied up in receivables globally, modernizing AR isn’t just a nice-to-have—it’s a survival tool to stay agile and competitive.
How does outdated AR management drag down a company’s daily operations compared to a modernized system?
Outdated AR systems are like trying to run a marathon in flip-flops. Manual processes—think paper invoices or endless spreadsheets—create errors, delay payments, and bog down teams with repetitive tasks. This slows cash flow and forces staff to focus on firefighting rather than strategy. A modernized system, on the other hand, automates these tasks, cuts errors, and provides real-time data. The result is faster cash cycles, less rework, and a finance team that can actually contribute to business planning instead of just chasing payments.
Can you explain how cash trapped in receivables limits a company’s ability to invest in growth or innovation?
When cash is stuck in receivables, it’s like having money in a locked safe you can’t open. Companies might have strong sales on paper, but without that cash in hand, they can’t reinvest in new projects, hire talent, or even cover short-term needs. This creates a vicious cycle—relying on debt or external funding just to keep the lights on. Unlocking that cash through modern AR tools means businesses can fund their own growth without the burden of added interest or financial strain.
What are some red flags that indicate a company’s liquidity is suffering due to poor AR practices?
One glaring sign is a high days sales outstanding, or DSO, which shows how long it takes to collect on invoices. If that number keeps climbing, it’s a clear signal cash isn’t flowing fast enough. Other red flags include frequent cash shortfalls despite solid sales, or an over-reliance on short-term loans to bridge gaps. These issues point to liquidity strain and a broken cash conversion cycle, which can cripple a company’s ability to operate smoothly or seize new opportunities.
How does upfront funding in a modern AR system transform invoices into near-instant cash for businesses?
Upfront funding is a game-changer. Essentially, it allows companies to convert their invoices into cash almost immediately—sometimes in just a day or two—through partnerships with financial providers. Instead of waiting 30, 60, or even 90 days for customers to pay, businesses get liquidity right away. This shrinks AR balances to near zero, eliminates the wait on collections, and gives companies the cash they need to keep moving forward without skipping a beat.
In what ways does improving customer experience through AR processes help build stronger business relationships?
AR isn’t just about numbers—it’s about people. Slow credit approvals or clunky payment systems frustrate customers and can sour relationships before they even start. Modern AR systems flip this by offering flexibility, like tailored payment terms or self-service portals where buyers can manage their accounts in real time. When customers feel empowered and transactions are seamless, trust grows. That trust translates into loyalty, repeat business, and even word-of-mouth referrals, which are gold in competitive markets.
What are some of the biggest inefficiencies you’ve seen in legacy AR systems, and how do they impact finance teams?
Legacy AR systems are often a patchwork of manual tasks—think handwritten invoices, endless phone calls for collections, or reconciling payments by hand. These inefficiencies eat up hours, sometimes days, for finance teams, pulling them away from strategic work. Error rates are high, leading to disputes and delayed cash. Plus, there’s no real-time data, so leaders are flying blind on cash flow decisions. It’s a drain on productivity and morale, and it keeps companies stuck in reactive mode rather than proactive growth.
Why do you think so many businesses hesitate to move away from outdated AR systems despite these clear drawbacks?
Change is hard, plain and simple. Many see AR as a back-office issue, not a growth driver, so they don’t prioritize fixing it. There’s also a fear of disruption—switching systems can feel like a risky overhaul during already busy times. Plus, some underestimate the true cost of manual work, both in dollars and lost opportunities. It’s often a case of “if it’s not completely broken, why fix it?”—until a cash crunch or customer loss forces their hand.
Looking ahead, what’s your forecast for the role of AR modernization in shaping business growth over the next few years?
I see AR modernization becoming a cornerstone of business strategy, not just a finance function. As markets get more competitive and cash flow pressures grow, companies that treat AR as a strategic asset will pull ahead. We’ll see more integration of full-service solutions that connect credit, payments, and collections seamlessly, powered by data and AI for smarter decisions. Those who adapt will unlock liquidity, strengthen customer bonds, and scale efficiently. Those who don’t will struggle to keep up—it’s that pivotal.
