06.05.14 |
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Invoice Automation on the Rise in Small and Medium Enterprises

The following is a guest post from Jimmy LeFever, Research Manager at Paystream

PayStream’s new report titled Electronic Invoice Management: A Move to the Middle reveals that the adoption of electronic invoicing and workflow automation solutions are on the rise in small and medium enterprises (SMEs).

Invoice Automation

New and improved innovations in eInvoice functionality including Software-as-a-Service (SaaS), free supplier portals, dynamic discounting and mobile transactional capabilities are the driving forces behind the increase in adoption in the middle market. More SMEs are now reaping the benefits that the large early adopters did, including reduced processing costs, increased invoice approval cycle times, improved cash management, and increased visibility, to name a few.

PayStream analysts have also identified a growing trend: eInvoicing is not an end in itself, but rather part of a larger refinement process involving integrating accounting systems, workflow, communications and supplier management. With Purchase-to-Pay (P2P) and eInvoicing solutions combined, companies can have the unparalleled visibility, control and compliance required to help optimize procurement and purchasing.

Highlights of this year’s eInvoicing Technology Insight report include:

  • Figure 1.Barriers to Invoice Adoption in Today’s MarketPaper invoices continue to decline as eInvoicing gains more traction.  Survey results reveal that 52 percent of supplier invoices are traded on paper, down from 59 percent in 2012.
  • While large companies continue to lead the pack in automation, SMEs are quick to embrace AP automation.  SME adoption continues to increase and is inching closer to adoption rates of large companies.
  • Automated workflow for invoices (36 percent) and an increase electronic invoicing (31 percent) rank as the top two AP automation goals for 2014.
  • Resistance to AP automation is decreasing, but barriers to adoption still remain.  The perennial favorites – supplier resistance (22 percent), current processes work (22 percent), and lack of budget (19 percent) remain the top three barriers to eInvoice adoption (See Figure 1).
  • Only 25 percent of the organizations surveyed use electronic invoicing, up from 21 percent a year ago. At the same time, 57 percent of the organizations are either implementing or evaluating eInvoicing solutions (See Figure 2).

 

Figure 1.Barriers to Invoice Adoption in Today’s Market

 

Barriers to Invoice Adoption

 

 

 

 

 

 

 

 

 

 

Figure 2. Where organizations stands in Invoice Automation adoption.

Where organizations stands in invoice automation

 

 

 

 

 

 

 

 

 

Download a complimentary copy of the Electronic Invoice Management: A Move to the Middle report today for the full report.

 



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