Case study
How a service company improved invoice collections with AI
Automated AR follow-ups
AI manages invoice communication across channels
Better payment visibility
Real-time tracking of customer responses
Reduced manual workload
Teams focus on higher-value customer activities.
Overview
A project-based service company wanted to modernize its accounts receivable process by creating a more efficient way to follow up on overdue invoices.
The company managed invoices through multiple systems, including QuickBooks and a project management platform. Because invoices were sometimes created or modified outside of QuickBooks, the team needed a flexible approach to manage invoice communication without exposing unnecessary invoice details to customers.
The company regularly managed overdue accounts, with approximately 25 customers becoming overdue each month. Many customers had multiple outstanding invoices, creating additional complexity for the AR team.
Another challenge was maintaining customer relationships during collections. Project managers were often the main customer contacts and were hesitant to aggressively request payments, creating tension between relationship management and payment recovery.
The company partnered with Squirrels.ai to implement an AI-powered AR collections workflow that could manage customer outreach independently while escalating complex situations to internal teams.
Client at a glance
Industry
Project-based service business
Business model
Client-based projects with invoice-driven payments
Primary challenge
Manual overdue invoice follow-up
Existing process
Manual calls, emails, and invoice tracking
AI solution implemented
AI-powered accounts receivable automation
The challenge
Manual collections consumed team time
The AR team spent significant time following up with customers about overdue balances.
Each customer conversation required reviewing invoice information, understanding payment status, and deciding the appropriate follow-up approach.
With multiple outstanding invoices per customer, manual tracking became difficult to maintain.
Multiple invoice sources created complexity
The company did not manage all invoices directly through one accounting system.
Invoices were generated or modified through different systems, requiring a solution that could access structured invoice information from multiple sources.
The team needed AI to access:
- Invoice amounts
- Due dates
- Invoice numbers
- Customer details
- Invoice links
- Payment information
Maintaining customer relationships during collections
Collections conversations can sometimes create friction with customers.
Because project managers were responsible for maintaining customer relationships, they were hesitant to take a more aggressive collection approach.
The company wanted an independent system that could manage payment reminders professionally while allowing internal teams to preserve customer relationships.
Difficulty sharing invoice details quickly
Customers occasionally requested invoice copies or payment details.
However, invoice documents were stored in folders without easily accessible URLs, making it difficult to quickly provide customers with invoice information.
The company needed a better way to automatically share invoice details and payment links during conversations.
The solution
Squirrels.ai implemented an AI AR Collections Specialist designed to automate payment communication while keeping human teams involved when needed.
AI-powered invoice follow-ups
The AI agent automated customer outreach through:
- Phone calls
- SMS
The system contacted customers regarding overdue invoices, answered common questions, and provided payment information.
The AI referenced invoice details such as amounts, due dates, and available links during conversations.
Multi-invoice customer conversations
Instead of contacting customers separately for every invoice, the AI consolidated multiple outstanding invoices into a single conversation.
This prevented repetitive communication and created a more organized customer experience.
The system was designed to manage customers with multiple open invoices, which was common for the company’s accounts.
Flexible data integration
The AI solution supported structured invoice data from different sources.
If invoice information was not available directly through an accounting system, the company could provide invoice details through spreadsheets or API connections.
The system required information such as invoice amount, due date, and invoice URL to support customer communication.
Payment link delivery
The AI agent could send invoice links through text and email when customers requested additional information.
During the demonstration, the AI referenced a sample invoice and provided a payment link through SMS, showing how customers could receive payment information directly during conversations.
Real-time collection tracking
The platform provided visibility into customer responses and collection outcomes.
The dashboard tracked statuses such as:
- Promised payment
- Paid
- Disputed invoice
- No response
This allowed AR teams to prioritize follow-ups and respond quickly to issues requiring attention.
Custom communication tone
The company could customize AI messaging based on invoice age and customer situation.
For example:
- Recent overdue invoices received softer reminders
- Older invoices received firmer follow-ups
- Specific customers could receive customized handling
This helped maintain a professional approach while improving payment recovery efforts.
Human escalation for disputes
The AI handled routine payment conversations but could involve human team members when needed.
Disputes and complex payment discussions could be escalated to internal representatives.
This ensured customers received appropriate support while reducing unnecessary workload.
Results and impact
The implementation created gradual improvements in AR operations by reducing repetitive collection tasks and improving payment communication visibility.
Reduced manual collection effort
The AI handled routine payment reminders and follow-ups, allowing AR teams to spend less time chasing invoices manually.
Teams could focus on exceptions, disputes, and higher-value customer interactions.
Improved customer communication
Customers received faster responses through their preferred communication channels.
The AI maintained consistent follow-up without creating unnecessary pressure on internal teams.
Better collection visibility
The company gained clearer insight into invoice conversations and payment status.
Conversation transcripts and analytics helped teams understand customer responses and prioritize actions.
More consistent AR workflow
The AI created a structured collection process that could adapt based on invoice age, customer history, and payment status.
This helped the company manage collections more effectively while protecting customer relationships.
Scalable collections process
The company created a foundation for expanding automation across future AR operations.
The pilot approach allowed the team to evaluate results, adjust messaging, and improve workflows before broader adoption.
TESTIMONIAL
Why organizations choose Squirrels.ai
Squirrels.ai helps businesses automate accounts receivable communication while maintaining professional customer relationships.
Organizations use Squirrels.ai to:
- Automate invoice follow-ups
- Contact customers through multiple channels
- Send payment information automatically
- Track payment commitments
- Identify disputes quickly
- Reduce AR workload
- Customize collection messaging
- Improve cash flow visibility