The combination of cutting-edge digital technology is revolutionizing businesses. Working capital management, accounts payable invoice processing, and account receivable all are being impacted by digital transformation. It affects the transformation of accounts receivable ad accounts payable equally.
Businesses have typically handled accounts payable (AP), accounts receivable (AR), and e-document compliance projects separately, utilizing different providers, as part of digital transformation initiatives. However, as governments introduce e-document restrictions that impact AP and AR procedures, this strategy is no longer commercially viable.
Every facet of business operation is undergoing a digital transformation. Accounts receivable process digitization offers unprecedented coordination between all Order-to-Cash activities across the entire enterprise in real-time just as much as for accounts payable invoice processing.
Global businesses are converting to digital.
A corporation must convert all manual or partially automated activities into fully automated processes that are simpler to manage and monitor as part of its digital transformation. This includes the requirement that all business departments be prepared to use electronic documents.
The increase in the exchange of different e-document types across businesses has historically been attributed to the shift towards automation and digitalization. But more lately, evolving legislation has taken the lead.
Government demands for electronic documents have been adopted at an increasingly rapid rate during the past few years. E-document regulations have already been adopted by more than 70 nations, and many more are anticipated to do so in the upcoming years.
The digital expectations
People have adapted to the quickly evolving technology both as consumers and as individuals. When a person wakes up nowadays, they speak to their smart speaker or phone to inquire about the weather, the calendar, and the day's news headlines. They are used to having so much information readily available.
Aspects of Technology in the process
The Order-to-Cash/Accounts Receivable transformation is made possible by a combination of digital technologies.
These consist of:
The Cloud (moving ownership from IT to process owners), access through mobile phones, digitalization of all data, robotic process automation, machine learning artificial intelligence assistants, AI/Deep Learning intelligent data capture, real-time, secure payments, blockchain with its distributed ledger, as well as APIs that free information exchange between systems and many more.
All these technologies combined has made the accounts payable and accounts receivable processes less complicated, less time consuming and more efficient.
The importance of e-document compliance cannot be overstated.
The e-invoice is the type of electronic document that is controlled most frequently. The electronic transmission and receipt of invoices has become a legal requirement everywhere. Invoice responses, dispatch advice, and other forms of e-documents are also required, which means that rather than just one component of operations, digital transformation is starting to become necessary across several activities at once.
International e-document regulations have recently changed:
· Poland, Belgium, and France will follow Italy in mandating the receipt of electronic bills in 2023 and 2024, respectively.
· India and Turkey have made it mandatory to send the buyer an electronic dispatch advisory.
· Electronic invoice responses are now required in Chile, Colombia, and Peru; Serbia will follow suit in 2023.
· It is now required in Italy for government organizations to electronically communicate orders to their vendors.
· Denmark will soon make its e-order and e-catalogue mandate public.
Companies must treat AP, AR, and e-document projects as a single project.
Consider a scenario in which a government mandate is implemented and your present provider is unable to comply with the required e-document kinds because they are not connected to the government infrastructure in that particular country. You will then need to seek a solution from a different provider in that situation.
You will soon have a variety of e-document providers from various nations and business procedures. This won't just be expensive to set up and maintain; it will also offset the advantages of automation you first sought and ultimately become unsustainable.
Therefore, businesses need a global partner who can convert, adapt, and comply with all the many e-document formats that are required by governments for your AP and AR processes.
At Skyscend, we consistently monitor the many global mandates and criteria that are continuously changing. We will assist you in automating and digitalizing all business activities necessary for the digital transformation while assuring compliance with all e-document types, with the goal of making your organization as touchless and futureproof as possible.
We would be delighted to hear from you if you or your organization is considering AP automation, AR automation, or e-invoicing compliance, or if you have any questions about where to start. Feel free to get in touch with us or add us on LinkedIn.