Accounts Payable Automation Statistics 2024 – Everything You Need to Know

Accounts Payable Automation Statistics 2023: Facts about Accounts Payable Automation outlines the context of what’s happening in the tech world.

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Top Accounts Payable Automation Statistics 2023

Top Accounts Payable Automation Statistics 2023

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Accounts Payable Automation “Latest” Statistics

Data from 2019 indicated that more businesses are now expecting to automate their Accounts Payable processes in the next 12 months, with 41% of them doing so.^[1]
More than 70,000 persons who live or work in the UK openly state that they are working in accounts payable, according to accounting labor data.^[2]
Accounting automation statistics are quick to point out that the accounting sector uses and benefits from 29% of automated technologies.^[2]
According to the most recent statistics, modern technology can handle 50% of all accounting activities.^[2]
Statistics from accounting fraud show that a company typically loses 5% of its annual income.^[2]
The worldwide market for accounting software is expected to reach close to $12 billion in value by 2026, rising at an annual pace of 8.6%.^[2]
Over 60% of small company owners admit that they aren’t highly aware of the financial and accounting aspects of their companies.^[2]
With a staggering 74.8% of accountants belonging to this ethnicity, Caucasians make up the majority of accountants.^[2]
71% of small businesses contract out their tax preparation.^[2]
Research predicted that 78% of small firms will switch their whole accounting operations to cloud software.^[2]
62% of respondents believe their accountants make every effort to reduce the amount of taxes they owe, while 24% are unsure.^[2]
Studies show that employing cloud computing for accounting may help businesses save expenses by up to 50%.^[2]
According to US accounting services statistics data, accounting software can automate about 75% of accounting operations.^[2]
1.69 million accounting jobs are now open, and over the next 10 years, demand for accountants is projected to increase by 4%.^[2]
In the U.S., there are reportedly 3 trillion in outstanding accounts receivable from firms, and the typical U.S. company has 24% of its monthly income held back due to trade credit.^[3]
It makes sense that the market for accounting software would increase at a CAGR of 8.02% between 2018 and 2026, from $11 billion to $20.4 billion.^[3]
Automated accounting systems are anticipated to have the greatest influence on firms over the next ten years by more than 50% of c level accounting executives13.^[3]
According to statistics, businesses eventually write off 4% of their accounts receivable as bad debt.^[3]
The UK accounts payable automation market is anticipated to expand at a compound annual growth rate of 9% during the forecast period.^[4]
According to market research projections, the market for on-site accounts payable automation will expand at a CAGR of 9.6% in 2032.^[4]
The United States has the market’s highest CAGR of 9.7% throughout the anticipated term, leading the world in accounts payable automation.^[4]
With a market share of around 35.2% in 2021, North America emerged as the leading area for the global accounts payable automation market.^[5]
According to estimates, North America will command the greatest market share for accounts receivable automation in 2022.^[6]
According to the prediction, the size of the global accounts receivable automation market will increase from USD 3.3 billion in 2022 to USD 6.5 billion in 2027, growing at a CAGR of 14.2%.^[6]
25% of accounts payable executives said they are having trouble reducing rising fraud and compliance threats.^[7]
According to IOFM, 71% of organizations want to further automate their accounts payable operation in 2020.^[7]
In total, the average accounts payable practitioner wastes 84% of their time on manual tasks based on IOFM benchmarking results.^[7]
20% of accounts payable executives state that it is very difficult to pay suppliers on time when employees work from home.^[7]
Only 6% of accounts payable departments claim they are giving up and won’t change from their antiquated manual procedures.^[7]
Only 9% of accounts payable managers surveyed by IOFM claim their organization has no or very few manual operations and is completely automated.^[7]
An alarming accounts payable data is that the latter, as ACFE found in its research, is one of the more prevalent behavioral red flags for fraud offenders, present in 15% of them.^[8]
The ACFE discovered that 277 of the 2,504 (14%) fraud cases it looked at between January 2018 and September 2019 started in accounting departments, with operations divisions coming in at 15% higher.^[8]
According to accounts payable figures given by PYMNTS.com, the federal trade commission also said that payments fraud increased by 47% in 2020.^[8]

Accounts Payable Automation “Report” Statistics

In the U.S., there is a reported $3 trillion in outstanding accounts receivable from firms, and the typical U.S. company has 24% of its monthly income held back due to trade credit.^[3]
According to PYMNTS.com, 87% of businesses with automated ar tasks report shorter processing times, and 79% claim automation helps them increase team productivity.^[3]
According to research, just 29% of chief accounting officers are utilizing RPA for financial reporting.^[3]

Accounts Payable Automation “Bill” Statistics

Twice the amount from the previous year, 16% of SMEs and 21% of midmarket businesses got digital bills.^[9]
Only 14% of paper invoices are submitted on the same day as receipt.^[3]
According to Grand View Research, the RPA market, which was estimated at $1.4 billion in 2019, is expected to expand at a CAGR of 40.6% between 2020 and 2027.^[3]
90% of big enterprises globally will have used RPA in some form by 2022, according to the analytical group that projects the global RPA market will increase by 19.5% from 2019 to 2020 and reach over $2 billion.^[3]
By the year 2024, approximately 4 billion individuals, or 50% of the world’s population, will be utilizing digital wallets, up from this year’s 2.3 billion.^[3]
The worldwide accounts payable automation market, according to research by The Brainy Insights, is anticipated to increase from USD 2.6 billion in 2021 to USD 7.5 billion by 2030 at a CAGR of 12.5% during the forecast period 2022-2030.^[5]
With a market share of over 36% and a value of roughly 0.93 billion in 2021, the banking financial services category dominated the market.^[5]
With a market share of over 59% and a value of roughly $1.53 billion in 2021, the major business sector dominated the industry.^[5]
With around 55% of worldwide sales and a market value of over $1.43 billion in 2021, the services sector dominated the market.^[5]

Accounts Payable Automation “Invoice” Statistics

68% of users still manually input invoices into the ERP/Accounting software, more than two-thirds.^[1]
56% of respondents in the accounting sector said they spend more than 10 hours each week handling invoices and payments to suppliers.^[1]
Compared to 2019, more businesses are automating the invoice data collection process, with 78% of respondents stating that data capture is a crucial component of their AP software.^[9]
61% of late payments are the result of compliance or administrative issues, such as receiving the invoice too late to process payment according to agreed credit conditions or getting inaccurate invoices.^[3]
Fewer than 20% of firms have completely automated processes and systems in place for processing invoices, despite the fact that 7 out of 10 clients say they prefer using a credit card only for online payments.^[10]

Accounts Payable Automation “Automation” Statistics

B2B automation, according to 84% of respondents from the accounting sector, could lower mistake rates and 81% said that it could save expenses.^[3]
Modern workflow automation management systems are in greater demand as a result of a focus on optimizing company operations, with Grand View seeing a cagr of 27.7% through 2025.^[3]
Since using ap automation technology, 65.8% of businesses have seen a reduction in reporting load, whereas 29.7% reported no improvements in reporting ease.^[11]
According to Kofax, automation may reduce expenses by 81% and increase efficiency by 73%, therefore this procedure benefits all parties.^[12]
Lack of funding was cited by 36% of healthcare institutions as the main obstacle to ap automation.^[13]

How Useful is Accounts Payable Automation

Accounts payable automation refers to the use of software solutions to digitize and automate the invoice approval and payment process. This technology aims to eliminate manual data entry, reduce errors, improve compliance, and ultimately save time and money for organizations. By automating routine tasks such as invoice processing, approval workflows, and payment processing, businesses can not only increase productivity but also enhance visibility and control over their financial operations.

One of the key benefits of accounts payable automation is its ability to streamline the invoice approval process. Traditional manual methods often involve paper-based invoices, which can be time-consuming and error-prone. With automation, invoices can be electronically captured, routed to the appropriate stakeholders for approval, and processed without the need for manual intervention. This not only accelerates the payment cycle but also improves accuracy and eliminates duplicate payments or errors that can occur with manual processing.

Additionally, accounts payable automation can help businesses improve compliance with regulatory requirements and internal policies. By centralizing invoice data and recording audit trails, organizations can enhance transparency and access to information, making it easier to track and manage invoices, payments, and vendor relationships. This level of visibility and control is essential for businesses looking to minimize risks and ensure financial accuracy in their accounts payable processes.

Furthermore, accounts payable automation can provide significant cost savings for organizations. By reducing manual labor and paper-related costs, businesses can lower operational expenses associated with invoice processing. Automation also enables organizations to take advantage of early payment discounts, optimize cash flow, and improve vendor relationships by ensuring timely and accurate payments. These cost-saving benefits can have a positive impact on a company’s bottom line and contribute to overall profitability.

While the benefits of accounts payable automation are clear, it is essential for businesses to consider their specific needs and requirements before investing in this technology. The decision to implement automation should be based on factors such as the volume of invoices processed, the complexity of the approval workflow, the size of the organization, and the level of integration with existing accounting systems. It is also important for businesses to evaluate the costs associated with implementing and maintaining automation solutions and weigh them against the potential benefits.

In conclusion, accounts payable automation has the potential to revolutionize the way businesses manage their financial processes. By streamlining invoice approval, improving compliance, and reducing costs, automation can provide businesses with a competitive edge in today’s competitive market. While the usefulness of this technology is undeniable, it is important for organizations to assess their specific needs and align them with the capabilities of automation solutions before making any investment. Ultimately, the decision to automate accounts payable should be guided by a thorough evaluation of the potential benefits and costs to ensure a successful implementation.

Reference

acarp-edu – https://acarp-edu.org/ifol-research-shows-the-rate-and-speed-of-accounts-payable-automation-across-businesses-worldwide/
goremotely – https://goremotely.net/blog/accounting-statistics/
webinarcare – https://webinarcare.com/best-accounts-receivable-automation-software/accounts-receivable-automation-statistics/
futuremarketinsights – https://www.futuremarketinsights.com/reports/accounts-payable-automation-market
globenewswire – https://www.globenewswire.com/news-release/2022/04/14/2422830/0/en/Accounts-Payable-Automation-Market-Size-to-Reach-USD-7-5-Billion-by-2030-Adoption-of-Smart-Technologies-Digitization-of-Businesses-to-Drive-Growth-The-Brainy-Insights.html
marketsandmarkets – https://www.marketsandmarkets.com/Market-Reports/accounts-receivable-automation-market-186013726.html
paymerang – https://www.paymerang.com/blog/why-71-of-ap-departments-are-automating-in-2020-and-you-should-too/
stampli – https://www.stampli.com/blog/accounts-payable/acounts-payable-statistics-trends-2021/
hyland – https://blog.hyland.com/data-capture/what-were-the-top-3-ap-automation-trends-in-2020/
paymentsjournal – https://www.paymentsjournal.com/how-to-automate-accounts-payable-and-turn-data-collection-into-relationship-management/
ascendsoftware – https://www.ascendsoftware.com/tech-trends-in-accounts-payable-ap-automation
businessinsider – https://www.businessinsider.com/accounts-payable-automation-report
mineraltree – https://www.mineraltree.com/blog/accounts-payable-statistics/