Stuut Insights

Why Manual Accounts Receivable Fails: The Hidden Revenue Drain Every Business Faces

Tarek Alaruri

CEO

March 10, 2026

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Walk into any AR department and you'll see smart, highly skilled professionals stuck logging into customer portals, chasing payments through endless email threads, and manually matching invoices. The result? Companies lose up to 5% of EBITDA to this inefficiency.

The Hidden Costs Add Up

Revenue leakage: Slow, manual processes mean cash is sitting in customer accounts instead of yours.
Working capital drag: Gaps in cash flow often push companies to take on bigger credit facilities tying up resources that could be fueling growth.
Labor inefficiency: AR teams spend 70% of their time on repetitive tasks like leaving voicemails, responding to emails, updating spreadsheets, or filing tickets. It’s busywork that keeps your best people from doing work that actually matters.
Scaling penalty: The bigger you get, the worse it gets. Every new customer adds more portals, exceptions, and manual work to manage.

The Technology Breakthrough

Traditional AR software tried to help, but it never solved the problem; instead it just gave humans slightly faster ways to click buttons. The paradigm shift was AI. For the first time, technology can actually take on the complexity of AR: learning customer patterns, handling exceptions, and completing entire workflows without a person stepping in.

Tarek Alaruri

CEO

Tarek grew up in Michigan and wrestled at Indiana University while working blue-collar jobs. At Total Quality Logistics, he discovered most past-due invoices stemmed from clerical errors requiring endless manual work—the exact problem Stuut now solves autonomously. After co-founding Fairmarkit, he started Stuut, which delivers 40% revenue improvements in days, not months.

Why real-time payment reconciliation is the future of accounts receivable

Ben Winter

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