Businesses are experiencing a surge in demand for streamlined invoice management. With forces driving demand for AP automation by a staggering 50%, it’s clear that the landscape is undergoing a seismic shift. From reducing manual errors by 80% to slashing invoice processing time by up to 70%, the numbers speak for themselves.
The industry expects the global demand for AP automation to be worth $3 billion-$3.2 billion by 2026 and an increase of 21% from the $1 billion-$1.2 billion.
But what prompts this growing demand for AP automation and why it has become a fundamental need of high-performing businesses in 2023? Let us understand why:
What Led to this Drastic Demand for AP Automation?
AP Automation driving forces
1. Unprecedented Data Accuracy
You can leverage advanced technologies like machine learning and optical character recognition (OCR), and automate data extraction, reducing manual errors by up to 75%. This streamlines the invoice management process, enabling faster approvals and minimizing delays caused by manual entry.
2. Cost Savings
You can eliminate the need for manual data entry, reduce paper-based processes, and optimize workflows. This results in substantial cost savings, including reductions in labor costs, lower processing fees, and minimized late payment penalties.
3. Mobile Accessibility for Enhanced Productivity
Mobile access empowers employees to manage invoices anytime, anywhere, improving collaboration and increasing productivity. With easy approval workflows, your business can expedite invoice processing cycles, minimize bottlenecks, and ensure timely payments by 40%
4. Need for Strengthening Supplier Relationships
Organizations that implemented AP automation witnessed a 50% reduction in invoice disputes, leading to improved supplier satisfaction. Centralized platforms for seamless communication, transparent workflows, and timely payments have become integral to businesses. By automating invoice processing and offering dedicated vendor portals, you can enhance collaboration, build trust, and strengthen supplier relationships.
5. Actionable Insights for Informed Decision
Companies using AP automation saw a 30% improvement in financial reporting accuracy. By integrating with financial systems and leveraging data, you can gain valuable insights into their spending patterns, cash flow, and financial performance. This enables informed decision-making, facilitates proactive financial management, and empowers organizations to optimize their financial processes.
6. Growing Focus on Security and Compliance
Regardless of your industry, security is important. Automation can help provide the necessary protection and validation to ensure that your business is protected against fraudulent actions. Eliminating non-electronic invoices helps ensure that all transactions are conducted electronically, which in turn, ensures a higher level of protection.
Final Thoughts
As we step into the future of finance, the demand for AP automation continues to rise. The power of data, cost savings, mobile access, supplier relationship management, and actionable insights are the driving forces behind this ever-growing trend. Automation in your invoice management is crucial and should not be compromised.
Therefore, you must implement a comprehensive system that automates almost every tentacle of your accounts payable processing, for effortless and efficient financial operations.
What is your company’s strategy when it comes to digital transformation? Looking for an end-to-end automation solution; check-out Serina- an all-in-one invoice automation solution for growing enterprises.
Check out our website to know more about Serina.ai.
