Global Accounts Receivable Automation Market Drivers:
Need for improving business efficiency by improvement of cash flow, cost reduction, and accounting cycle time to drive the market pace
The use of account receivable automation helps boost predictable cash flow. As per YayPay, nearly 60% of business owners are worried about the cash flow each month, and use of account receivable automation offers solution to such issues. With automation, the need for manually sending emails to customers, sending reminders of due payments is eliminated for account receivable staff. Using accounts receivable automation tools send all these communications to clients automatically. Thus, this is boosting the demand for accounts receivable automation among businesses, which in turn is expected to drive growth of the global accounts receivable automation market during the forecast period.
Rise in adoption of technologies such as cloud computing to boost the market growth
Several businesses are inclining toward cloud-based solutions, which is further propelled by the digitization of enterprises around the world. As per the data of Leftronic, nearly 90% companies currently have adopted cloud services, with AWS being the main cloud platform. Moreover, the number of businesses shifting their workloads to cloud, due to its better data recovery benefits and mitigating risks. As per Cisco, by 2021, cloud data centers are likely to process 94% of the workloads. Thus, these factors in turn are expected to drive growth of the global accounts receivable automation market over the forecast period.
Global Accounts Receivable Automation Market Opportunities:
Growing demand for accounts receivable automation software due to various factors such as working capital of firms, more invoice disputes, less agent productivity among others is expected to create significant growth opportunities in the global accounts receivable automation market during the forecast period. Increasing number of firms across industries are reviewing accounting automation systems, as companies cannot wait and manage manual accounting challenges. Other factors such as slower collections, and need for standardized, simplified accounts receivable processes is also creating demand for accountable receivable automation. Thus, these factors will bring several growth opportunities in the market.
Moreover, growing adoption of artificial intelligence technology is also anticipated to create lucrative environment for growth opportunities in the global accounts receivable automation market during the forecast period. With increasing use of cloud-based technology, the use of AI is has also increased among several industries. AI is considered to be in its budding stages, however, is witnessing increasing investments and growing adoption. As per Forbes, the rate of firms investing over US$ 50 million in AI and big data initiatives increased from 39.7% in 2018 to 64.8% in 2020. Thus, growing adoption of artificial technology is likely to drive demand for different automated solutions among various End User verticals.
Global Accounts Receivable Automation Market Drivers:
Need for improving business efficiency by improvement of cash flow, cost reduction, and accounting cycle time to drive the market pace
The use of account receivable automation helps boost predictable cash flow. As per YayPay, nearly 60% of business owners are worried about the cash flow each month, and use of account receivable automation offers solution to such issues. With automation, the need for manually sending emails to customers, sending reminders of due payments is eliminated for account receivable staff. Using accounts receivable automation tools send all these communications to clients automatically. Thus, this is boosting the demand for accounts receivable automation among businesses, which in turn is expected to drive growth of the global accounts receivable automation market during the forecast period.
Rise in adoption of technologies such as cloud computing to boost the market growth
Several businesses are inclining toward cloud-based solutions, which is further propelled by the digitization of enterprises around the world. As per the data of Leftronic, nearly 90% companies currently have adopted cloud services, with AWS being the main cloud platform. Moreover, the number of businesses shifting their workloads to cloud, due to its better data recovery benefits and mitigating risks. As per Cisco, by 2021, cloud data centers are likely to process 94% of the workloads. Thus, these factors in turn are expected to drive growth of the global accounts receivable automation market over the forecast period.
Global Accounts Receivable Automation Market Restraints:
Complexity of procedure of invoicing and payment management to hinder the market pace
With no automation in place, processing payments and sending invoices can take lot of time in AR departments, especially when it is reliant on paper process. As per the PYMNTS.com, AR teams assign these functions to the most resources with 25% and 23% of staff dedicated to support invoicing and managing payments respectively. Due to the complexity of digitalization, a substantial share of businesses around the world are still sing manual invoices. For instance, as per Wax Digital, nearly 82% of finance departments are overburdened by the high number of invoices, which is processed daily. Such numbers combined with automation processes having mandatory data inputs increases complexity of this process. Thus, this factor is likely to hinder growth of the global accounts receivable automation market during the forecast period.
Concerns regarding privacy and security to impede the market growth
Data security is a major concerns for majority of stakeholders in accounting fields. With rise in number of identity, cybercrimes, frauds; several businesses are becoming hesitant in adopting digital solutions. When there is any data breach, businesses are likely to face loss in a certain share of revenue in both market and damages accountability. Thus, these in turn impacts adoption of accounts receivable automation, which is likely to restraint the market pace. However, vendors are focusing on offering solutions with robust data security and privacy, which is likely to support the market growth in the near future.
Accounts Receivable Automation Market Report Snapshots
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