Technology is a fundamental driving force that is reshaping the way people carry on the business dealings around the world. This drive for technical advancement is having an impact in a variety of business processes and workflow, including accounts payable. As such business trying to flourish in an increasingly digital world, digitalization is becoming standard practice. Consequently, AP automation is one critical part of this transformation.
If you have traced the recent weather in business undertaking the financial teams are evolving into c agents of change, entrusted with developing new leadership strategies. Finding new ways to adapt, scale, and profit on technology in the present global climate is critical to future success. Invoice management is one of their top priorities in this evolution as the conventional methods serves no good and automated invoice processing is already here to make the business win the game.
We expect the changes we've seen this year to continue. The most successful businesses will seek to capitalize on these shifts and undergo even more radical transformations in their operations. The best approach is to ensure that you make informed choices for your company to stay up to date on AP automation trends. Follow along to learn about the AP automation trends that we believe business owners and account teams should be aware of in 2022.
·In B2B payments acceptance, supplier preference is important:
The buyer and buyer automation have received a lot of attention in the industry. While technology adoption on the buyer side to automate financial operations will continue, there has been an increase in receivables and supplier automation. It's critical to guarantee that accounts receivable can keep up with accounts payable's progress.
Businesses are also providing their suppliers the option of accepting fee-based payment methods. Furthermore, AP automation is allowing organizations to focus on efficiency in diverse aspects and benefits both a buyer and a supplier, and to use a single solution to automate the entire process.
Digitalization is no longer a thing of the future:
Corporates' move from checks to digital payments reached a tipping point at Covid-19. Before the pandemic, online payment used to be around 30 to 40%. Today, the percentage is increasing from 60 to 70 % implying that only one-third of clients still use paper checks. As the inconveniency and expenses of checks become more apparent, and as remote work makes them a pain too great to bear, that number will continue to shrink.
Not just paper checks and invoice management, but the entire manual task of accounts payable process is difficult to handle remotely. As such the AP automation software and automated invoice processing has taken the driving seat.
Security and identity management are more vital than ever:
Perhaps this comes as no surprise, that a good number of firms have experienced a known fraud attack, with around one-third of these attempts being successful. The most cunning thieves are buying toolkits on the dark web and modifying them to circumvent detection and deterrent technology. They're asking for ransomware payments in bitcoin, which lacks the conventional safeguards and monitoring found in normal payment methods.
It has never been more necessary to amp up your security to be ready for any fraud attack than it will be in 2022. The AP automation solutions are thus curated to tackle security issues and provide a transparency and control to combat even internal fraudulent possibilities. No forgery or duplicate invoices or payments, a secured system with access control and advanced features leaving audit trails.
Cloud-based solutions are in high demand
Accounts payable software is available in both on-premise and cloud-based versions. The key distinction between these two types of software is that cloud-based software is accessible from anywhere, allowing employees to access dashboards and backends. The use of cloud-based solutions also makes it easier to combine an AP automation software with other software, which leads to the next AP system and software trend to watch for.
Advantage of AP with data and analytics
By obtaining access to data and analytics, accounts payable and finance departments will be able to improve their financial management. Accountants and finance professionals may gain a better picture of cash flow with automated reports and dashboards, allowing them to recognize areas for improvement and opportunity. Automated invoice processing, for example, can break down travel and cost management, monitoring spends on each line of item and category, and develop regulations to prevent unauthorized cost.
The future of AP and other financial procedures will be determined by digitization. Businesses who wish to improve their cash flow management and be financially healthy for years to come should prioritize invoice management and AP automation software integration into their accounting procedures.
But the question to ponder upon are-
Is your organization evolving with these trends? How can your organization address the digital transformation adequately?
Skyscend has the answers ready for you with its cloud-based AP automation solution contact us now or book a demo.