Trends in Accounts Payable Automation in 2022
Few could have predicted challenges brought about by the pandemic. According to a recent report, almost every department within AP has been affected by COVID-19, with 28% reporting an extraordinary or significant impact, while only 71% of departments had some to a little degree of impact.
Financial leaders are looking to make smarter choices when streamlining operations in this dynamic environment. For many leaders, the accounts payable function remains an important area to start with. Let us look at some of the top accounts payable automation trends in the near future.
Remote AP will increase the demand for accounts payable automation
According to a recent global report, the number of employees working remotely will double by 2025. Accounts payable teams will need solutions that are accessible from any location to accommodate these changes. According to a recent global survey, 71% of businesses plan to automate their accounts payable function further in 2022.
AI & ML Technologies will power up AP
Technologies such as Digital workflows, Artificial Intelligence, Machine Learning among others can significantly reduce AP process cycle time. Digitization of financial processes is the key to improving customer satisfaction significantly.
For example, the AI technology can quickly learn how an organization executes accounts payable invoice processing and can leverage that information to recommend or auto-apply processing rules to both new and past vendors. It can also improve AP workflow automation by intelligently routing invoices based on keywords and vendor information. It can automatically code vendor invoices using historical patterns and complex suggestions, removing redundant manual invoicing processes. All of these improvements make the processes more agile and free up AP staff to engage in more value-added tasks.
Demand for Cloud Based Solutions
The main difference between on-premise and cloud based Accounts Payable automation solutions is that cloud based operates online, making it possible for AP staff to access dashboards and reports from anywhere. The integration of AP software with other software is easier using cloud-based solutions.
Enhanced Data Analytics
Large enterprises are still struggling to interpret data and draw useful conclusions from it. Accounts payable software support organizations by providing data analytics and reporting capabilities.Finance leaders are continually striving to use data more effectively, with an imperative to produce better reporting on key performance indicators (KPIs) and identify areas to realize cost savings across the business.
More Robust Cybersecurity
As businesses are recovering from post-COVID confusion, fraud incidents will continue to be a threat. Strong cybersecurity will be necessary, more than ever. This involves checking for code vulnerability, endpoint security, data and asset management, constant monitoring, and careful identity management and credentials.
Digitization plays a crucial part in the future of Accounts Payable function. Enterprises who want to streamline their cash flow management, and stay financially healthy for many years to come, should start prioritizing software integration into their manual workflows.