Accounts Receivable Automation Market Estimated To Witness High...

Accounts Receivable Automation Market Estimated To Witness High Growth Owing To Rising Demand For Streamlining Billing Processes

Veröffentlicht 2024-02-06 12:32:47

Accounts receivable automation refers to technology-enabled solutions that help organizations improve the efficiency of invoice processing, payment collection, cash application and account reconciliation. Accounts receivable solutions automate routine billing and payment tasks to eliminate manual data entry and reduce processing times. These solutions allow organizations to generate and deliver invoices electronically, receive payments online, apply cash automatically and mitigate days sales outstanding.

The global accounts receivable automation market is estimated to be valued at US$ 3817.53 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics: One of the key drivers for the growth of the accounts receivable automation market is the rising demand from organizations to streamline billing processes and reduce the costs associated with manual tasks. Accounts receivable automation solutions help eliminate tedious and time-consuming manual processes of invoice delivery, payment tracking and reconciliation. This allows organizations to redeploy resources to more strategic tasks. Furthermore, accounts receivable automation improves payment collection rates by facilitating online payment options for customers through mobile and web-based portals. Automation also helps organizations gain real-time visibility of cash flow and apply payments accurately reducing days sales outstanding.

SWOT Analysis

Strength: Automation of accounts receivables helps reduce the workload of the accounting department. It ensures timely collection of payments and reduces DSO. Automation also minimizes manual errors and ensures quality of receivables management.
Weakness: High initial investment costs for automation solutions may not be feasible for some small businesses. Changing business requirements can render some automation solutions outdated quickly.
Opportunity: Growing adoption of AI and analytics provides opportunities to develop advanced accounts receivable automation solutions. Rise in international trade increases demand for automation from credit and multi-currency management perspectives.
Threats: Data security risks associated with automation solutions can compromise confidential financial information. Introduction of regulations around data sharing across borders poses compliance challenges.

Key Takeaways

The global Accounts Receivable Automation Market Demand is expected to witness high growth. It was valued at US$ 3817.53 Mn in 2024 and is projected to reach US$ 6594.64 Mn by 2031, registering a CAGR of 7.1% during the forecast period.

Regional analysis

North America dominates the global accounts receivable automation market currently. Advanced digital capabilities and growing consultancy spending on automation drives higher adoption in the region. Furthermore, presence of leading automation solution providers and early technology adoption promotes the market. The Asia Pacific region is expected to be the fastest growing market during the forecast period. Rapid industrialization and emergence of SMEs increases the demand for automation from accounting departments in the region.

Key players related content

Key players operating in the Accounts Receivable Automation Market are Aarti Surfactants, Akzo Nobel N.V., Antozyme Biotech Pvt Ltd, ARC Surfactants, Ashland, BASF SE, Behn Meyer, Cargill, Incorporated, Clarient, Croda International Plc, and DuPont Nutrition & Biosciences. These players are focusing on developing advanced AI-powered solutions to automated invoicing, credit applications and cash application processes. Partnerships with ERP providers also expand their customer outreach.