The Future of Accounts Payable: Predictions and Expectations for 2023
Posted by Fazal Sayyed
As the business world continues to evolve and technology advances at a rapid pace, it's important for companies to stay up-to-date on the latest trends and developments in the field of accounts payable. In this blog post, we'll explore some predictions and expectations for the future of accounts payable, and how businesses can prepare for what's to come.
Now that the New Year has arrived, we are all prepared to reevaluate how we approach AP. Here are some ideas:
1. The shift towards digital and automated processes
One trend we're seeing is the shift towards digital and automated processes in accounts payable. With the help of technologies like artificial intelligence and machine learning, it's becoming increasingly possible for businesses to automate many of the tasks involved in accounts payable, such as invoice processing and payment reconciliation. This not only saves time and reduces the risk of errors, but it also allows companies to reallocate resources to more strategic tasks.
2. Start using AI in your Accounts Payable
Artificial intelligence (AI) is transforming how businesses operate, including in the field of accounts payable. By using AI in accounts payable software, businesses can extract important information from documents like contracts, invoices, credit notes, and payment reminders, understand the context, and categorise them based on various features. This can help businesses digitise their paper records and improve search functionality by automating the process.
However, it's important for businesses to feed quality data into the AI system in order to get accurate business intelligence and a competitive edge. AI invoice automation can also extract data from invoices in various formats and provide simultaneous mapping for faster checks and approvals.
3. The growth of early payment discount programmes
Early payment discount programmes are also becoming more popular in accounts payable. These programmes allow businesses to negotiate discounts with suppliers in exchange for paying invoices before the due date. This can help companies save money and improve their cash flow, while also helping to strengthen relationships with suppliers.
4. The role of mobile technologies
Mobile technologies are also playing a bigger role in accounts payable management. With the proliferation of smartphones and tablets, it's now easier than ever for businesses to manage their accounts payable on the go. This includes things like mobile invoice submission, mobile payment approvals, and mobile expense tracking.
5. The integration of accounts payable with other finance functions
Finally, we're seeing a trend towards the integration of accounts payable with other finance functions, such as procurement and treasury. By bringing these functions together, businesses can gain a more holistic view of their financial data and make more informed decisions.
Overall, the future of accounts payable looks bright, with many exciting developments and opportunities on the horizon. By staying up-to-date on these trends and preparing for the future, businesses can position themselves for success in the coming years.