CFOs are under pressure to protect margin, preserve cash flow, and improve operating efficiency without continuously adding cost across the business. That pressure is forcing finance teams to look harder at the operational areas that directly influence working capital, write-offs, and the cost of getting paid. Yet collections and cash application are still often treated as administrative functions instead of financial performance levers.

The gap between invoice and cash directly impacts liquidity and working capital, and even small improvements in collections timing can create meaningful financial impact. In a higher interest rate environment, the cost of delayed cash has become much more visible than it was over the past decade. For companies managing borrowing costs closely, a few days of improvement in cash conversion can free up capital, reduce reliance on credit facilities, and create more flexibility across the business. At the same time, weak receivables visibility creates revenue leakage and unnecessary write-offs, while inefficient collections processes increase operating cost and create friction across customer relationships.

There are three areas where CFOs can make a measurable impact this year.

1. Reduce DSO through better collections prioritization

Many collections teams still apply the same level of effort across the receivables portfolio regardless of account risk or payment behavior. The result is predictable: collectors spend time chasing low-risk balances while the accounts most likely to impact cash flow continue aging deeper into delinquency.

High-performing AR organizations intervene earlier, automate routine follow-up activity, and coordinate faster across finance, sales, and customer teams when strategic accounts show signs of risk. That discipline improves cash conversion without pushing equally hard on every account, while earlier intervention also helps prevent overdue balances from aging deeper into delinquency, improving both DSO and working capital performance.

2. Reduce bad debt and prevent revenue leakage

Many overdue balances become write-offs because finance lacks clear visibility into what is truly unpaid versus what is operationally unresolved. Payments often remain unapplied while disputes, remittance gaps, and reconciliation issues sit unresolved across disconnected workflows. In many cases, customers are not refusing to pay. They are waiting for finance teams to resolve billing or application issues before payment can move forward.

That operational friction creates revenue leakage, increases bad debt exposure, and strains customer relationships unnecessarily. Finance organizations outperforming here keep collections and cash application moving with more structure and accountability. Structured workflows for disputes, promises to pay, and escalations help resolve issues faster, while improved payment reconciliation reduces unnecessary collections activity tied to operational issues rather than true nonpayment.

Cash application has become one of the largest operational leverage points after contract signing because small reconciliation issues can quickly create payment delays, customer friction, and unnecessary collections activity. Every point of bad debt reduction flows directly to the bottom line, especially as finance teams face increasing pressure to protect margin while maintaining growth.

3. Lower the cost to collect while scaling AR efficiently

Many finance organizations continue scaling collections linearly with growth. More customers and more payment complexity eventually lead to more people, which becomes difficult to sustain as CFOs face increasing pressure to improve operating margin and productivity.

The largest opportunity inside AR is reducing manual work. Collectors still spend too much time working aging reports, following up on low-risk balances, and resolving payment mismatches that should already be structured inside the process.

Organizations operating more efficiently standardize workflows, automate repetitive collections activity, and reduce reconciliation effort so teams can focus on the accounts and exceptions that materially impact cash flow. The result is fewer manual touches, lower AR overhead, and less pressure to add headcount as volume grows. For CFOs, that creates operating leverage by allowing finance to support more growth and complexity with the existing team.

Why This Matters Now

CFOs are looking for measurable financial outcomes: faster cash conversion, lower write-offs, and lower operating cost inside finance. The finance organizations outperforming here are building more discipline into collections and cash application. My team is using Zuora Collections & Cash App to automate collections workflows, improve payment reconciliation accuracy, and reduce unapplied cash so collectors can spend more time focused on the accounts that materially impact cash flow.

The broader opportunity is straightforward: improve cash flow, protect more revenue, and increase leverage across the finance organization.

Continue the Conversation

May 28,2026: AI Is Rewriting Revenue. Is Your Finance Team Ready? 

As AI becomes embedded across products and operations, finance teams are being asked to rethink how revenue is managed, measured, and governed. Join this session to hear how finance leaders are approaching AI inside quote-to-cash, including the operational changes, control considerations, and financial risks that come with scaling it.

June 2, 2026: Faster Cash, Fewer Headaches: Zuora’s AI-Powered Collections & Cash App

As borrowing costs remain elevated, finance leaders are looking more closely at the operational levers that directly impact cash flow, working capital, and margin preservation. Join this session to hear how organizations are modernizing collections and cash application to accelerate cash conversion, reduce revenue leakage, and improve AR efficiency without scaling headcount at the same rate.

Before I go, one final thing. If you work anywhere near quote-to-cash, some of these situations will probably look familiar.

Here’s a short video from the Zuora team that adds a little levity to the reality of the job.