Mon. Jun 17th, 2024

According to a report by PYMNTS Intelligence, 22% of mid-sized firms anticipate a reduction in payments fraud through the automation of their accounts payable (AP) and accounts receivable (AR) processes. The report, which surveyed over 400 executives, found that mid-sized firms are increasingly turning to automation to streamline their AP and AR processes for increased efficiency, accuracy, and scalability. The survey found that 90% of mid-sized firms planning to automate their AP and AR processes expect more accurate and streamlined operations. Automation also reduces the time and labor involved in processing transactions, leading to greater savings and increased cash flow for 44% of these firms. Additionally, 51% of mid-sized firms anticipate improved data analysis and trends through automation, which provides real-time visibility into financial data. This enhanced data availability facilitates better cash flow management and more accurate financial forecasting, driving informed decisions and growth.

One key advantage of automation is its role in preventing fraudulent payments. The survey found that 22% of mid-sized firms anticipate a marked improvement in preventing fraudulent payments through the automation of their AP or AR processes. This highlights the importance of automation in safeguarding financial transactions and protecting businesses from potential fraud risks. Automation also benefits supplier and customer relationships through prompt payment processing, potentially leading to better terms and enhanced satisfaction. Embracing full AP automation can further enhance vendor relationships, leading to improved negotiation terms and supply chain stability.

The report emphasizes that automation is crucial for mid-sized firms navigating economic headwinds, as businesses that have not automated any processes anticipate slower growth. Therefore, embracing automation is not just an option but an imperative for sustained growth and resilience in the face of evolving economic dynamics.