Abstract, Snapshot, Market Analysis & Market Definition: Invoice Automation Software Market
In 2021, the global Invoice Automation Software market size was 2558 million US$ and it is expected to reach xx million US$ by the end of 2027, with a CAGR of xx% during 2022-2027. This report focuses on the global Invoice Automation Software status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Invoice Automation Software development in United States, Europe and China.
Almost all invoices submitted through a company’s Electronic Data Interchange (EDI) are automatically processed. However, for large companies a significant share of invoices (up to 50%) are sent by smaller companies that are not part of the company’s EDI. Most Fortune 500 companies using technology that was not developed in the last few years have 10-15% automation rates while leading edge, deep learning based invoice extraction solutions can increase that to >80%. End-to-end automation of processes is possible thanks to hyperautomation which is the technology that combines different technologies such as AI(Artificial Intelligence), OCR(Optical Character Recognition) and RPA(Robotic Process Automation). Invoice automation is also an example of hyperautomation.
Automated Invoice Processing Software: What is it and How Does it Work?
The traditional method of invoice document management begin when the accounting department receives a invoice. At this point, it is matched and approved. Depending on the amount of the invoice further approval is needed. Then invoice is entered into the system where it is “posted” for payment. Then the payment is issued.
Automated invoicing cuts to the chase. When the invoice arrives, it is scanned and fed into the digital accounting system. This form of data capture (otherwise known as invoice capture) cuts out hours of manual data entry. The invoice automation software will then convert the data into a text-searchable document.
The invoice data can be extracted and mapped in the automated management system so it remembers which fields to capture and register into the ERP system. This includes data like supplier name, the purchase amount, quantity, and so forth. Invoices are then routed to the appropriate parties for review and approval.
So, Invoice processing automation is software used by businesses to ultimately help streamline accounts payable processes by automatically paying supplier invoices. Invoice processing automation involves extracting invoice data entering a system and seamlessly inputting that data into the ERP or accounts payable system, allowing payments to be made in minutes.
The traditional method is a bloated process that extends to an inefficient environment. Invoices are being received via mail, fax, email, etc. This is the primary reason AP process needs automation. A payable department can streamline the time-consuming system with artificial intelligence and machine learning. A digital invoice is a component of workflow automation. Technology is redefining business processes and this includes invoice management, from arrival to post.
Our primary research surveys have found out businesses who have invested in invoice automation can process in less than one-fifth the time it takes peers who process invoices manually. The system is adept in capabilities that seamlessly ingest invoice data across multiple channels so that businesses can manage end-to-end AP workflows with ease.
What are the benefits of Invoice Automation in Accounts Payable Processes?
A snapshot of how automation transforms mission-critical procure-to-pay processes:
- Unified Console: Accounts payable automation puts everything at fingertips. Platforms are typically run from a single dashboard that provides managing power of buyers, vendors, invoicing, payments, financial data, etc.
- Improved data accuracy: Best-in-class data extraction rates as high as 95% (typically not less than 80%) through multiple channels—including email, upload and scanning can be achieved.
- Greater profitability: Reduce processing costs by eliminating manual keying and manual verification
- 24/7 availability with an average uptime of 99.9%: Multi-tenant cloud service with AI/machine learning engine capabilities requires no hardware or software investments or time-consuming maintenance, upgrades or updates
- Relationship Management: Invoice processing software gives suppliers clear visibility on their relationship with your business. Payments, orders, and invoices can be viewed by all parties involved. It also enables a company to provide a supplier with a number of different options for electronic invoicing.
- Monitoring and Reporting: Due to the transparency of invoice automation, a business can easily monitor expenses and know what is being spent, when, and where. Run insightful reports in real-time to enable quick business decisions.
- International: An automated invoice processing tool allows a business to stay connected internationally, without all the hassle of paperwork. A key feature of industry leading solutions are multilingual and account for country-specific VAT regulations. The ability to sell products and process them globally does wonders for expanding operations. An integrated solution allows to control the complexity of business on a global scale.
- Operations: The system provides easy management of transactions through credit cards, ACH/EFT, and PayPal.
- Enhanced supplier relationships: Faster invoice processing eliminates late-payment penalties and increases early payment discount opportunities
New technology is now allowing businesses to use digital workers to automate their accounting processes, making it easier for them to avoid unnecessary losses. Helping to create solutions to common issues such as vendor overpayments or revenue leakage from bank accounts, this type of AI tech also allows enterprises to successfully grow and maintain efficiency. Reconciliation solutions which are capable of handling a large volume of data and also able to sync with multiple external systems without human intervention are a good tool for creating better financial outcomes.
For e.g. Fleet management is an area that can benefit. It can help fleet owners reconcile vehicle fuel consumption against distance covered and planned routes. They can identify potential fuel pilferage, match toll fees or traffic fines to a vehicle, ensuring that there is an automated bill back to the leasing customer.
Manufacturer or supplier, who want to sell products to consumers, have to work with distributors and retailers, both in home country and abroad. The margin for a distributor may range from 3% to 30% of the sales price, the margin for the retailer may range from very little to 60%. This all depends on the type of product and who pays for the marketing activities. Fast moving consumer goods makers, facing rising input costs over the last few quarters, will likely continue to witness pressure on their gross margins in the near term. The profit margin squeeze explores the challenges consumer products companies face due to the combination of rising and volatile input costs and a price sensitive consumer. Nearly every step from farm to retailer has been impacted by surging commodity costs driven by rising food demand, constrained food supply, rising energy costs and global economic uncertainty. Consumer spending patterns are also undergoing a shift, influenced by a higher degree of consumer frugality, increased availability of low-cost options, widening consumer bifurcation between the top and bottom income quintiles, and retail bifurcation between the discount and premium channels.
In USA, companies that manually process fewer than 20,000 payments per year have a median cost per invoice of $15.97. Those that use automation have a median cost per invoice of $12.98. Companies that manually process between 20,000-100,000 payments per year have a median cost per invoice of $6.10. Those that use automation have a median cost per invoice of $4.24.
Unauthorized Purchases, sending payment before delivery, double payment, and disappearing invoices are major issues which business verticals face.
Market Segmentation, Outlook & Regional Insights: Invoice Automation Software Market
Segmentation by Product Type: Breakdown of data from year 2016 to 2021 and forecast until 2027:
Segmentation by Application: Breakdown of data from year 2016 to 2021 and forecast until 2027:
- IT and Telecommunications
- Retail and e-commerce
- Energy and Utilities
Market segment by Regions/Countries, this report covers
- North America
- Asia Pacific
- Rest of the world
Key Players, Recent Developments & Sector Viewpoints: Invoice Automation Software Market
- Ariba, Inc
- Bottomline Technologies
- Corcentric, LLC
- The Sage Group plc
- Tipalti, Inc
- Chrome River
- FIS Global
- Qvalia AB
Key Insights Covered: Exhaustive Invoice Automation Software Market
1. Market size (sales, revenue and growth rate) of Invoice Automation Software industry.
2. Global major manufacturers' operating situation (sales, revenue, growth rate and gross margin) of Invoice Automation Software industry.
3. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Invoice Automation Software industry.
4. Market size (sales, revenue) forecast by regions and countries from 2019 to 2025 of Invoice Automation Software industry.
Research Methodology: Invoice Automation Software Market
- Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
- Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
- Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among others.