Post this pandemic automation of the accounting process, is no longer a luxury but a necessity for any accounting department. Every large business today utilizes automation in one form or the other for their accounting process, especially when it comes to high volume invoice processing in Accounts Payable.
Even if you are a business that has already deployed Accounts Payable automation, one must always keep the ears to the ground when it comes to automation tools in accounting. Especially large businesses with a high volume of invoices can significantly benefit from even minor advancements in automation technology when it comes to Accounts Payable.
At Back Office Accountants, our Accounts Payable experts make use of the versatile AP automation tools to get the work done effectively and accurately in a timely manner. As a remote accounting firm offering outsourced Accounts Payable Services, we stay abreast of emerging trends to make the most out of automation.
If you are a business that is looking to further improve your AP process with advanced AP tools, then this blog is for you. Here we list 3 emerging technologies in Accounts Payable that large businesses can significantly benefit in coming years.
Top 3 Emerging Technologies in Accounts Payable:
Better control, reduced errors, cycle times and improved visibility over the entire AP process and financial data has always been the primary goal of automating Accounts Payable.
Artificial intelligence, Big Data and Blockchain are three emerging technologies in AP that further improve the AP process by significantly improving the efficiency of each stage in AP. Read on to know-how:
By employing cognitive automation AI aims to reduce manual intervention, increase efficiency and provide strategic advantage. Few use cases of AI/Machine learning in the AP process are as follows:
1. When powered by AI, OCR systems can not only detect errors but also smartly fill in missing information, match items across purchase documents, significantly improving the invoice capture process and decreasing human intervention.
2. Combining OCR with Natural language process and machine learning extracts relevant data from the documents for automated categorization and searches functionality – this was not possible with traditional automated systems.
3. AI-powered analytics help in providing financial forecasts & improved fraud detection.AI amplifies all the benefits of AP automation while providing significant assistance in extracting strategic insight for financial planning.
Big Data Analytics for Accounts Payable:
Data is the oil of the twenty-first century. An organization that extracts the most from the data unlock new opportunities and discover new growth paths. Accounting for starters creates a monumental amount of data every year that needs to be sharply utilized for extracting insight or financial planning and this is where Big Data analytics helps.
Analysis of data to conclude is a common practice in the financial industry. But when the volume and complexity of the data run increases far beyond for humans to conclude, Big Data steps in. Utilizing AI/ML algorithms Big Data analytics helps uncover hidden trends and patterns for high-performance insights.
Right now Big Data is used to analyse past performance and tweak the current process and forecast future outcomes. The simplest application of Big Data can be the analysis of the payment cycle to tweak the payment process and accrue early bird discounts and payment rebates.
Blockchain in Accounts Payable:
Usually associated with cryptocurrency, Blockchain is made synonymous with Bitcoin. However, Blockchain is a distributed ledger platform that can be thoroughly utilized to pave way for robust and high-performance Accounts Payable.
Without going into this complex terminology, Blockchain can be described as a distributed digital ledger that is the most secure for payment processing, record keeping and information tracking. With businesses using Blockchain for secure money transfers & ePayments, Blockchain is in its early stages of adoption as far as accounting industry is concerned. Agreed that Blockchain is still in its infancy, our Accounts Payable experts at Back Office Accountants believe that Blockchain will have a powerful role to play in Accounts Payable in coming years.
Outsourced Accounts Payable Services by Back Office Accountants:
While Accounts Payable is in a constant state of evolution, there is still a business that is only in the early stage of AP automation. If you are a business that is looking to automate your AP, our Accounts Payable experts can assist.
However, if you feel you will more be benefitted by outsourcing Accounts Payable, then our team at Back Office Accountants will be more than happy to get the job done for you. By leveraging our advanced AP automation tools, our Accounts Payable experts can help you accrue all the benefits of automated AP without having to go through complexities of a dedicated AP department and technology stack. For Outsourced Accounts Payable Services, you can contact us here: https://www.backofficeaccountants.com/