The accounts receivable automation market helps in enhancing the efficiency of the billing and payment processes. It assists companies in reducing the manual efforts associated with processing invoices, matching payments, reconciling accounts, and collecting payments. Accounts receivable automation solutions leverage advanced technologies like AI and machine learning to automate repetitive and mundane accounting tasks. 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 13.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Adoption of AI and machine learning technologies is one of the major trends driving the growth of the accounts receivable automation market. These technologies help automate various accounts receivable tasks like invoice creation, payment tracking, reconciliation and collection of payments. They analyze past transaction data and patterns to recognize duplicate payments, identify fraudulent activities and detect anomalies. With AI and ML capabilities, accounts receivable automation solutions are able to perform these tasks with greater accuracy and efficiency as compared to manual methods. They can learn from historical data and continuously optimize processes. This boosts the productivity of accounting teams and also improves cash flow management.
SWOT Analysis
Strength: Accounts receivable automation solutions help improve cash flow and reduce DSO. They enable efficient invoice processing and automated payment reminders.
Weakness: High upfront costs associated with automation solutions may not suit all organizations. Technical issues and integration challenges can also arise during implementation.
Opportunity: Growing adoption of cloud-based accounts receivable automation among SMEs presents an opportunity. Increasing demand for digital payment methods also favors market growth.
Threats: Strict data security & privacy laws pose compliance challenges. Economic slowdowns can delay IT spending and negatively impact demand.
Key Takeaways
The Global Accounts Receivable Automation Market Size is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis The North American region currently dominates the market and is expected to continue its dominance over the forecast period. Rapid adoption of digital technologies among businesses in the US and Canada drives market growth in the region. Key players operating in the Accounts Receivable Automation are Esker Inc., SAP SE, Comarch SA, Oracle Corporation, Bill.com Holdings Inc., SK Global Software, MHC Automation, Quadient(YayPay Inc.), Qvalia AB, Kofax Inc., HighRadius Corporation, Workday Inc., and Corcentric LLC.
The Asia Pacific region is expected to showcase the highest growth over the forecast period. Growing digitalization and increasing spend on financial automation solutions among companies in China, India, and other emerging countries offer lucrative opportunities. Organizations in the region are also rapidly embracing cloud-based AR automation to streamline invoice processing and payment collection.
Key players operating in the Accounts Receivable Automation are focused on strengthening their product portfolios and expanding into growing international markets. Strategic partnerships and mergers and acquisitions remain key growth strategies. Solution providers are also enhancing integrations with enterprise resource planning (ERP) and accounting software to offer comprehensive automation platforms. Adoption of AI and machine learning capabilities in accounts receivable solutions is another important trend.
