Automated invoice processing is a way of extracting invoice data, populating the information in an accounts payable system, and processing invoice data for accounts payable using automation software. Effectively used, automated invoice processing saves a company’s AP department time and money.
Invoice Automation Based Industries:
- BFSI
- Manufacturing
- Healthcare
- Retail & Consumer Goods
- Education
- Transportation and Logistics
Invoice Automation Market by region:
- America
- Europe
- Asia Pacific
- Middle East & Africa
Based on Organization Size:
- Small and Medium-sized Enterprises
- Large Enterprises
Invoice management software
- Invoice management software saves time & resources for organizations – 50%
- Automation can cut costs by 81%
- Improve efficiency by 73%
Global AP automation market size
- Global AP automation market size in 2019 – USD 1.9 billion
- Global AP automation market size is expected to reach 2024- USD 3.1 billion by 2024
Several sizable barriers exist that hold AP back
- Too much paper – 40%
- Exception Rate – 62%
- Lengthy invoice approval times – 51%
Rise of Electronic Invoices
- Electronic invoice processing – 45 % in 2018
- Electronic invoice processing – 66 % in 2020
- Electronic invoice could rise to more than – 70 % in 2021
Invoice Technology reduces the stress levels
- 78 % of respondents said new automation technology helps in reducing stress levels
- Reduction in manual efforts – 100%
- Reducing overall costs by – 60%
AP Invoice Automation Reduces the Cost
- Implementing an AP automation solution reduces the hard labor cost of invoice processing by – 78%
- Improving your AP clerk processing rate without automation – 5 invoices/hr
- Improving your AP clerk processing rate with automation – 30 invoices/hr
Business losses due to manual invoicing
- Companies experience losses due to human error – 27.5 %
- Companies rely on manual data entry processes – 80 %
Invoicing Without Automation
- 36% of firms using paper invoicing
- 47% rely on manual processes
- 49% of payments made by cheques
Problems caused due to AP exceptions on invoices
- 32% of all late payments
- 36% of all supplier-related phone calls
Need more time
- 54% of businesses said invoices were being sent to the wrong place
- 36% said they were concerned with late payments due to process delays
Benefits of Automated Invoice Processing
- Cut down the error rates
- Speeds up the approval process
- Reduces duplicate invoices & payments
- Slashes the costs of manual invoice processing
- Improves the relationship with vendors
- Better to secure early-payment discounts and avoid making late payments
Solutions For Better Workflow In Invoice Processing
- Adopt paperless accounts payable software
- Reduce delays and eliminate process bottlenecks
- Streamline exception processing
- Ensure consistent, controlled AP processes
- Reduce late payment penalties
The success level of implementing automation
- Improvement in the overall processing time – 90%
- Achieved data accuracy – 100%
