How AI in Business Central Improves AR DSO and Sales

When finance leaders talk about performance, AR DSO (Accounts Receivable - Days Sales Outstanding) usually tops the list. And for good reason.

It’s more than a metric; it’s a measure of how quickly cash actually makes it back into your business.

The faster receivables are collected, the more resources you have for growth, stability, and opportunity.

In my first blog of this three-part series, I explored how AI in Business Central helps minimize bad debt.

In this second installment, we’ll look at the flip side: how AI and ERP tools like Microsoft Dynamics 365 Business Central improve financial performance by boosting sales and tightening AR DSO.

What Is AR DSO and Why Does It Matter?

AR DSO (Days Sales Outstanding) measures how quickly customer accounts receivables are turned into cash. A low DSO means money is coming in fast, while a high DSO signals bottlenecks in collections—and potential strain on cash flow.

That number isn’t just relevant to the accounting department.

It influences how confidently a business can plan its next move: whether to hire, invest, or expand. The slower payments come in, the more working capital is locked up, and the harder it is to sustain growth.

Essentially, AR DSO is your company’s financial pulse.

A healthy rhythm keeps cash moving through the business smoothly. A sluggish one, driven by late payments or manual processes, can signal trouble ahead.

Can AI Tools in Business Central Help Reduce DSO by Improving Accounts Receivable Automation?

Many businesses still handle collections manually: spreadsheets, email reminders, and notes that fall through the cracks.

That lack of automation creates missed follow-ups, inconsistent communication, and longer payment cycles.

These gaps add up to slower collections, higher DSO, and a constant scramble for visibility.

Microsoft Dynamics 365 Business Central changes that.

By bringing automation and AI together, it gives finance teams a faster, smarter way to manage receivables.

Tools like Microsoft's Late Payment Prediction app extension bring early visibility to at-risk invoices, helping teams act before balances go overdue.

Rather than chasing every customer equally, finance teams can focus where it matters most.

Microsoft’s Late Payment Prediction app uses AI to highlight overdue accounts, suggesting which ones to prioritize, and even drafting reminder messages.

Together, these capabilities make collections more proactive and less reactive, reducing DSO while freeing teams from repetitive tasks.

The result is a proactive process that keeps your finance team focused on prevention rather than chasing overdue balances.

What Are the Benefits of Unifying Sales and Finance Data in Business Central for Improving Financial Performance?

When sales and finance operate from separate systems, visibility breaks down.

Finance teams might not know that a big deal was closed last week, while sales might not realize that a long-standing customer is 45 days past due.

Those disconnects can create unnecessary risk, from credit exposure to delayed collections.

In Dynamics 365 Business Central, those barriers disappear.

Both teams see the same real-time data. A sales rep quoting a new project can instantly view the customer’s payment history, while finance can track open opportunities that could impact future cash flow.

This unified view improves decision-making and helps both teams act faster. It also supports a more strategic approach to extending credit—balancing growth opportunities with financial responsibility.

The bottom line here? When sales and finance share one system, they share one goal: stronger cash flow and better AR DSO.

How Does AI Predict Payment Risk or Likelihood of Late Payments in ERP Systems?

AI doesn’t replace experience, it enhances it.

In Business Central, the same Late Payment Prediction app extension uses historical payment patterns and behavioral data to provide valuable insight into potential risk.

These predictions don’t claim to be perfect, but they do give finance teams the early warning signs they need to act strategically, such as adjusting terms or offering payment plans before an account becomes delinquent.

Accuracy depends on how current your data is. When payment systems are integrated directly with ERP, AI works from real-time information, strengthening the reliability of those predictions. Without integration, insights lag behind reality.

That’s where ERP-integrated payments make a measurable difference, ensuring finance teams always work from the most accurate and timely data.

For more on how faster payment processing strengthens cash flow, check out my blog on Faster Payment Processing.

What ROI Can Organizations Expect from Implementing AI-Powered AR Solutions in Dynamics 365?

While every organization starts from a different point, the ROI from AI-enabled automation tends to show up quickly. Businesses that integrate AR automation often see:

• Shorter collection cycles and stronger cash flow

• Reduced write-offs and fewer surprises at quarter-end

• Better alignment between finance and sales goals

It’s a clear trend: automation frees up working capital and helps teams focus on strategy instead of manual follow-ups.

And that’s where USTPay’s expertise adds value.

By helping companies implement Business Central with integrated payment solutions, USTPay ensures finance leaders not only deploy the right tools but also get the full strategic benefit of connected data.

Conclusion: Turning Data into Financial Advantage

AI, Business Central, and integrated payments give organizations the ability to improve AR DSO and boost sales performance, all from a single, unified system.

By aligning finance and sales data, automation becomes insight, and insight becomes action.

Businesses can anticipate risks earlier, strengthen customer relationships, and free up working capital to focus on strategy, instead of annual processes.

In the final blog in this series, I’ll explore the next step: operational efficiency, and how automation reduces manual work and speeds up the order-to-cash cycle.

To learn more about how AI, ERP, and integrated payments can reshape your financial outcomes. Contact USTPay

About Wade Tetsuka:

Wade Tetsuka is a visionary leader with over 15 years of experience as President of U.S. Transactions Corporation (a Microsoft Fintech company), where he has helped transform the landscape of B2B merchant services.

His deep expertise in finance, coupled with a keen understanding of compliance and client management, has positioned UST– a leading payments software provider and Independent Software Vendor (ISV) for Microsoft Dynamics 365 – as a trailblazer in helping businesses save money and streamline payments, making Microsoft Dynamics 365 an open-modern platform for payment processing.

As the founder of Presidential Forum LLC, an exclusive network for C-level executives, Wade fosters thought-provoking discussions that shape industry trends and leadership strategies. His commitment to excellence and forward-thinking approach makes him a sought-after voice in both the merchant services and executive leadership arenas. Connect with Wade on LinkedIn.