Accounts Receivable Automation Statistics


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

LLCBuddy editorial team did hours of research, collected all important statistics on Accounts Receivable Automation, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

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Top Accounts Receivable Automation Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 26 Accounts Receivable Automation Statistics on this page 🙂

Accounts Receivable Automation “Latest” Statistics

  • According to statistics, businesses eventually write off 4% of their accounts receivable as bad debt.[1]
  • According to a 2014 E2B Teknologies report, 47.93% of SMBs in the B2B sector handle credit and collections using the limited capacity of their accounting or ERP systems.[2]
  • According to a 2014 E2B Teknologies report, 53% of midmarket B2B enterprises handle their accounts receivable using spreadsheets.[2]
  • 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]
  • 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]
  • By 2023, online sales in the United States are anticipated to treble, accounting for 20–25% of the country’s total retail market.[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 executives.[3]
  • According to research, just 29% of chief accounting officers are utilizing RPA for financial reporting4.[3]
  • The typical firm holds back 24% of its monthly income due to payment terms or trade credit, and there are an estimated 3 trillion dollars in business outstanding accounts receivable in the U.S.[3]
  • It is anticipated that from 2021 to 2031, the employment of bookkeeping, accounting, and auditing clerks would decrease by 5%.[4]
  • With a market share of over 39.8% in 2021, the Asia Pacific region became the biggest market for the global accounts receivable automation industry.[5]
  • The worldwide market for accounts receivable automation is predicted to increase from USD 14 billion in 2021 to USD 38 billion by 2030, with a CAGR of 11.8% during the forecast period of 2022–2030.[5]
  • During the projection period, the worldwide market for accounts receivable automation is expected to increase from USD 3.3 billion in 2022 to USD 6.5 billion by 2027, at a compound annual growth rate of 14.2%.[6]
  • In 2026, the market for accounting software is projected to reach $20.1 billion, representing an increase of 8.02% CAGR from 2018.[7]
  • Making the switch to automated payables has cut the cost of operating an accounts receivable department in half and manual processing by 85%.[8]
  • According to predictions, 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%.[8]

Accounts Receivable Automation “Other” Statistics

  • 25% of credit departments stated in one research that they lacked sufficient employees to handle their demands.[1]
  • According to 27% of bank executives, customer’s usually couldn’t pay on time since they either lacked the funds or couldn’t reach the consumer to address the problem.[2]
  • Only 20% of credit departments, according to Credit Today, have established credit and collections rules, and of that tiny number.[2]
  • Credit Research Foundation estimates that 17% of company clients do not follow supplier credit agreements.[2]
  • 35.5% believe that using electronic invoicing will help to eliminate the need for manual AP processing.[3]
  • In 2020, 65% of organizations intended to spend more than $50 million in big data and artificial intelligence efforts, up from 40% in 2018, according to a recent CEO study by New Vantage Partners.[3]
  • Findings show that just 15% of companies have comprehensive HR technology plans that are in line with their company objectives.[3]
  • According to Deloitte, among millennials, 43% anticipate themselves quitting their employment within two years, while just 28% see themselves lasting longer than five years.[3]
  • According to McKinsey, at least one-third of weekday tasks may be automated in around 60% of occupations.[3]
  • More than 30% of corporate leaders anticipate using fewer checks, while 37% predict payables with virtual cards to see the biggest increases.[3]

Also Read

How Useful is Accounts Receivable Automation

One of the key benefits of accounts receivable automation is the time savings it offers. By automating repetitive tasks such as sending out invoices and reminders, businesses can free up valuable resources to focus on more strategic activities. This not only makes the accounts receivable process more efficient but also allows employees to spend their time on high-value tasks that can drive growth and innovation within the organization.

In addition to time savings, accounts receivable automation can also help businesses improve their cash flow management. By speeding up the invoicing and payment collection process, businesses can reduce the number of outstanding invoices and get paid faster. This not only helps improve cash flow but also reduces the risk of late payments and bad debts, ultimately leading to a healthier financial position for the organization.

Accounts receivable automation can also lead to improved accuracy and reduced errors in the invoicing and payment collection process. By automating these tasks, businesses can minimize the risk of human error and ensure that invoices are sent out promptly and accurately. This can help improve customer satisfaction and reduce the risk of disputes over billing issues, ultimately leading to a more positive customer experience and stronger relationships with clients.

Furthermore, accounts receivable automation can provide businesses with valuable insights and analytics that can help them make more informed decisions. By tracking key metrics such as DSO (Days Sales Outstanding) and customer payment trends, businesses can identify issues and trends early on and take proactive steps to address them. This can help businesses optimize their accounts receivable process, improve collection rates, and ultimately drive better financial performance.

Overall, accounts receivable automation can bring numerous benefits to businesses of all sizes and industries. By streamlining the invoicing and payment collection process, improving cash flow management, reducing errors, and providing valuable insights and analytics, automation can help businesses boost efficiency, reduce costs, and drive growth. While there may be initial costs and challenges associated with implementing accounts receivable automation, the long-term benefits far outweigh the investment.

In today’s fast-paced and competitive business environment, accounts receivable automation has become more of a necessity than a luxury. Businesses that embrace automation and leverage technology to optimize their accounts receivable process will be better positioned to succeed and thrive in the digital age.

Reference


  1. gaviti – https://gaviti.com/ar-automation-the-secret-to-improving-ar-collections-in-enterprise/
  2. lockstep – https://lockstep.io/blog/27-accounts-receivable-management-facts-for-the-cfo/
  3. webinarcare – https://webinarcare.com/best-accounts-receivable-automation-software/accounts-receivable-automation-statistics/
  4. bls – https://www.bls.gov/ooh/office-and-administrative-support/bookkeeping-accounting-and-auditing-clerks.htm
  5. globenewswire – https://www.globenewswire.com/en/news-release/2022/04/11/2419972/0/en/Accounts-Receivable-Automation-Market-to-Register-11-8-CAGR-Growth-as-Demand-for-Faster-Invoicing-Effective-Cash-Management-System-The-Brainy-Insights.html
  6. globenewswire – https://www.globenewswire.com/news-release/2022/06/16/2463644/0/en/The-global-Accounts-Receivable-Automation-market-size-to-grow-from-USD-3-3-billion-in-2022-to-USD-6-5-billion-by-2027-at-a-Compound-Annual-Growth-Rate-CAGR-of-14-2.html
  7. highradius – https://www.highradius.com/resources/Templates/accounts-receivable-automation-assessment/
  8. marketsandmarkets – https://www.marketsandmarkets.com/Market-Reports/accounts-receivable-automation-market-186013726.html

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