Market Trends of Accounts Receivable Automation Industry
This section covers the major market trends shaping the Accounts Receivable Automation Market according to our research experts:
Increasing Adoption of Technologies Such as Cloud Computing and AI
- The propensity of businesses toward cloud-based solutions is increasing significantly and is further augmented by the digitalization drive of enterprises worldwide. According to Medtronic, about 90% of companies currently use some cloud service, with AWS being the primary cloud platform driving the account receivable automation market because, with an internet connection, cloud accounting software enables finance personnel to oversee crucial procedures from any location. In contrast, only a few devices can be used with conventional on-premises accounting software.
- Businesses are increasingly moving their workloads to the cloud, offering better data recovery and mitigating risk. According to Cisco, cloud data centers are expected to process 94% of the workloads by 2021. Business systems are increasingly moving to the cloud; therefore, adopting cloud accounting will benefit their system flexibility and compatibility.
- Moreover, according to RightScale, an average business runs about 38% of its workloads in public and 41% in a private cloud. On the other hand, SMEs prefer the public cloud, with 43% running workloads on the public cloud instead of on the private cloud (35%), which is more expensive.
- The consumer inclination toward SaaS is further driving the demand for cloud solutions. Online backup/recovery is the prominent priority, followed by email hosting, online productivity, and web hosting, according to Spiceworks. Smaller firms still dedicate a comparatively lesser IT budget toward the cloud. A significant workload is expected to be SaaS over the coming years. According to CISCO, 75% of all cloud workloads and compute instances are expected to be SaaS by 2021.
- Important business data, such as the number of days' worth of unpaid sales, is provided to consumers by a good cloud accounting platform. Most corporate processes use using enterprise resource planning (ERP) systems. Companies look for accounts receivable software that can interact with ERP systems to maximize efficiency. APIs are reshaping the market globally and making cloud-based platforms simple to integrate with any ERP system. Due to this, the demand for cloud-based account receivable tools is increasing.
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The Asia-Pacific Region is Expected to Witness the Highest Growth
- Asia-Pacific is expected to witness robust growth due to the growing need to automate day-to-day operational processes. Due to the increasing demand for precise accounting procedure management and timely processing of payment processes from customers, accounts enterprises in the region adopt receivable automation to boost payment collection.
- The accounts receivable automation market in the region has gained traction due to the increasing demand for automated and secured payable processes. The computerized reports receivable solution allows organizations to successfully drive the transformation of their accounts receivable departments to overcome the challenges of manual and paper-based processes.
- The adoption of AI-driven solutions is expected to create scope for the market in the region. For instance, Fuji Xerox Asia Pacific announced its expanded partnership with the business process and document automation vendor, Esker, to launch the Esker Accounts Receivable solution in the region. The AI-driven solution enables different teams to collaborate more effectively and complies with standards in over 60 countries.
- The region is witnessing a huge adoption of digitalization. As part of the digital transformation journey, a growing trend is pushing businesses to become digitally compliant in all their trading transactions in the Asia-Pacific. Adopting e-invoicing, seamlessly integrated with their ERP or accounting solutions, may improve business efficiency and data quality and reduce errors. With significant expansions of vital regional players, Asia-Pacific is expected to grow significantly during the forecast period.
- In July 2021, the back-office software provider Bill.com announced that it had signed a final agreement to acquire Invoice2go for USD 625 million in equity and cash transactions. Invoice2go is a mobile-first accounts receivable (AR) software provider that enables small businesses and freelancers to manage billing and payments and expand their client base. This acquisition aims to enhance the existing AR offered by Bill.com in the region.
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