Accounts receivable automation refers to the use of software solutions and technologies to automate and streamline the process of billing, cash collection and credit management. This helps organizations get rid of manual and paper-based methods and replace them with digital workflows. Accounts receivable automation has become increasingly important due to growing business complexity along with the need to accelerate cash flow and reduce days sales outstanding (DSO). The market offers end-to-end software to manage receivables through invoice delivery, payment reminders, cash application and account reconciliation. There are also solutions for credit risk monitoring and workflow management. The global Accounts Receivable Automation Market is estimated to be valued at US$ 3313.82 Mn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
One of the major drivers for the growth of accounts receivable automation market is the increased efficiency in accounts receivable processes through automation. Automating accounts receivable reduces manual data entry errors and automates repetitive tasks like invoice delivery, payment posting and cash application. This frees up employee time and allows them to focus on other value added tasks. Automation also increases visibility across the order to cash cycle through real-time dashboards and reporting. Another driver is faster cash collection and improved cash flow. Accounts receivable automation helps accelerate payment cycles by automating payment reminders, reducing payment durations and improving collections. This in turn optimizes working capital and boosts organizational cash flow.
There are four key segments in the accounts receivable automation market – solution, deployment, organization size and vertical. The solution segment is further divided into order management, dispute management and debt collection, accounts receivable automation and reporting. Among these, the order management segment dominates currently as it helps companies gain real-time visibility into order processing and exceptions.
Political: Developing economies are encouraging automation to improve productivity and growth. This promotes adoption of accounts receivable automation solutions.
Economic: Rising costs of manual processes and strong GDP growth in Asia Pacific and Latin America are driving increased spending on automation. Social: Younger workforce prefers digital workflows and automated solutions which is a key driver for adoption. Technological: Advancements in AI, blockchain and analytics are enabling innovative receivables solutions and greater customization.
The Global Accounts Receivable Automation Market Size is expected to witness high growth over the forecast period, driven by cost efficiency, productivity gains and better customer experience.
Regional Analysis: The Asia Pacific region is projected to witness the fastest growth on account of rapid digitalization and internet penetration in countries like India and China.
Key players like 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 dominate the market and are focusing on product innovation and partnerships to strengthen their presence.