What’s Next In Accounts Payable Automation
Accounts payable automation is not a new phenomenon. The global AP automation market size is expected to grow from USD 1.9 billion in 2019 to USD 3.1 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 11% during the forecast period.
One of the most crucial reasons for the exponential growth of the AP Automation market is the rise in the number of demands to reduce the volume of delayed payments. This helps improve all AP transactions compliance rate.
AP automation solution sector is expected to hold a more significant market share during the forecast period. Since the manual procedures are time-consuming, expensive, error-prone, the AP automation helps automate all the payment processes.
In addition to this, it can be easily integrated with the ERP. This results in an enhanced ability to adopt changes and increase payment processes’ efficiency. It also empowers various organization stakeholders like CFO’s, managers, accountants, and AP staff to carry out their tasks effectively.
Here’s what the near future of accounts payable looks like:
It has become a necessity rather than a luxury:
- Every organization should shift gears and switch to an automated system to survive in the current massive digital market. Automating the AP process helps save time, increases data accuracy, and provides advanced automation possibilities.
- This enables touch-less invoice processing and essential data insights to improve financial control, spending visibility, and cost-saving opportunities.
Accounts payable automation is gaining momentum as a Business-Value center:
- Initially, they considered accounts payable a traditional and transactional back-office function. However, it has now become a strategically important intelligence hub for critical business financial data now.
- The main reason behind automating Accounts Payable is to remove manual processes and increase operational efficiencies and create visibility in business-critical data.
“The state of ePayables report 2019 report indicates that 55% of organizations perceive the AP function as either “very valuable” or “exceptionally valuable” to organizational operations.”
Importance of AI and ML for Accounts Payable automation:
- The majority of the data collected or stored goes unused. Hence, they make decisions on a minimal amount of data.
Close to 70% of data goes unused, according to Forrester.
- There will be a significant rise in invoice data usage to provide the end-users with more excellent business value. This transition from Accounts Payable to Business Intelligence Hub will lead to higher investments in AI and ML by AP automation solution providers.
Operational efficiency is crucial for growth and Revenue:
- With the economic uncertainties that businesses face today, companies need to rely on factors like operational efficiency. This helps companies to strengthen their operational backbone to support a healthy financial process. They have always considered AP as a back-office function.
- The automation process has helped cover 40% of their day-to-day operations. This leaves them with enough bandwidth to perform value-adding tasks such as process optimization, data analysis, and supplier management.
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