New York, June 13, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Accounts Receivable Automation Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06079811/?utm_source=GNW
11% during the period of 2022-2027 (henceforth, referred to as the forecast period).
Key Highlights
The accounts receivable automation process is becoming more and more necessary as it helps businesses save money, time and improve efficiency. Credit choices, corporate borrowing, liquidity management, corporate sales reporting, and sales commissions are all impacted by poor receivables operations. Furthermore, inefficient receivables processes make it difficult to understand a company’s present financial situation.
Paper-based invoices, which are human and physical in nature, present various problems to recipients who want to handle them promptly and efficiently. According to PYMNTS, processing such invoices costs firms between USD 16 and USD 22 per invoice. Furthermore, 72.4% and 43.8% of these are distributed using postmail and fax machines, respectively. These are some of the most common sources of friction in accounts receivables.
Digitizing invoices help in avoiding manipulation errors and reduce employees’ time in performing repetitive tasks, such as filing/scanning invoices; this time can be utilized for more important tasks in the organization. Digitizing the AR process further helps to reduce printing costs and makes employees more profitable. ?
With the growing propensity of businesses toward digitalization and automating the process, the demand for accounts receivable automation sees a surge in demand. Automation is changing the way of getting paid. In various B2C transactions, many traditional payment methods, such as cheques, are being replaced with innovative, electronic alternatives.
Data security is a rising concern for a significant share of the stakeholders in the accounting field. With the increasing number of identity frauds and cybercrimes, businesses are increasingly becoming cautious in adopting digital solutions.
Due to the COVID-19 pandemic, the lack of a workforce is expected to drive businesses to automate various processes, including accounts receivable further. Owing to this, accounts receivable automation vendors are expected to see a surge in demand for their solutions until mid-2021.
Key Market Trends
Increasing Adoption Of Technologies Like Cloud Computing And AI
The propensity of businesses toward cloud-based solutions is increasing significantly and is further augmented by the digitalization drive of enterprises across the world. According to Leftronic, about 90% of companies are currently using some type of cloud service, with AWS being the primary cloud platform.
Businesses are increasingly moving their workloads to the cloud as it offers better data recovery and mitigates risk. According to Cisco, cloud data centers are expected to process 94% of the workloads by 2021.
Moreover, according to RightScale, an average business runs about 38% of their workloads in public and 41% in a private cloud; SMEs, on the other hand, prefer public cloud with 43% running workloads on the public cloud instead of on private cloud (35%) which is more expensive.
The consumer inclination toward SaaS is further driving the demand for cloud solutions. A prominent share of the workloads is expected to be SaaS over the coming years. According to CISCO, 75% of all the cloud workloads and compute instances are expected to be SaaS by 2021.
Moreover, a third of companies’ IT budget is dedicated to cloud services, with online backup/recovery being the prominent priority, followed by email hosting, online productivity, web hosting, according to Spiceworks. Smaller firms still dedicated a comparatively lesser IT budget toward the cloud.
The Asia Pacific Region to Witness Highest Growth
Asia-Pacific is expected to witness robust growth due to the growing need to automate day-to-day operational processes. Due to the increasing demand for precise accounting procedure management and timely processing of payment processes from customers, accounts enterprises in the region adopt receivable automation to boost payment collection.
The accounts receivable automation market in the region has gained traction due to the increasing demand for automated and secured payable processes. The automated accounts receivable solution allows organizations to successfully drive the transformation of their accounts receivable departments, to overcome the challenges of manual and paper-based processes.
The adoption of AI-driven solutions is expected to create scope for the market in the region. For instance, Fuji Xerox Asia Pacific announced its expanded partnership with the business process and document automation vendor, Esker, to launch the Esker Accounts Receivable solution in the region. The AI-driven solution enables different teams to collaborate more effectively, and it is compliant with standards in over 60 countries.
A growing trend is pushing businesses, as part of their digital transformation journey, to become digitally compliant in all their trading transactions. The adoption of e-invoicing, seamlessly integrated with their ERP or accounting solutions, may improve business efficiency quality of data and reduce errors.
In July 2021, Back-office software provider Bill.com announced that it had signed a final agreement to acquire Invoice2go for USD 625 million in equity and cash transactions. Invoice2go is a mobile-first accounts receivable (AR) software provider that enables small businesses and freelancers to manage billing and payments and expand their client base. This acquisition aims to enhance the existing AR offered by Bill.com in the region.
With such significant expansions of various vital players into the region, Asia Pacific is expected to grow significantly in the forecasted period.
Competitive Landscape
The competitive landscape of the Accounts Receivable Automation Market is moderately fragmented owing to the presence of significant market players globally. Acquisitions, partnerships with industry participants, and new product/service rollouts have been the key competitive strategies exhibited by vendors in the market. For instance, Cortex, a provider of accounts payable and accounts receivable solutions for the oil and gas sector, was acquired by Drillinginfo. Such developments are expected to increase in respective end-user verticals as prominent players in such industries are expected to expand their market presence.
May 2021- Esker announced a strategic partnership with KPMG France to guide businesses in their transition to e-invoicing. The alliance will combine their respective expertise to accompany administrative and financial departments in their digital transformation.
May 2021 - Quadient announced that its software-as-a-service (SaaS) accounts receivable (AR) automation solution Yay-Pay by Quadient shall be available to small and medium-sized businesses through the web-based Marketplace of Sage which is a provider of cloud business management solutions. Partnering with Sage shall enable the company to build a fast-growing AR automation SaaS solution in the market.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06079811/?utm_source=GNW
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