PayStream’s new report titled Electronic Invoice Management: A Move to the Middle reveals that adoption of electronic invoicing and workflow automation solutions are on the rise in small and medium enterprises (SMEs).
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 the growing trend within the industry that eInvoicing is not an end in itself, but rather part of an overall process and a culture involving integrated accounting systems, workflow, communications and supplier management. With Purchase-to-Pay (P2P) and eInvoicing solutions combined, companies can have unparalleled visibility, control and compliance required to optimize procurement and Accounts Payable (AP).
Highlights of the report findings include:
- Paper 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.
- 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.
The Electronic Invoice Management report was underwritten in part by ADP, Ariba, Basware, Corcentric, Coupa, Direct Commerce, iPayables, Nipendo and Taulia. The report can be downloaded for free HERE. Download your complimentary copy today.
