Today businesses strive to get more work done in less time with greater accuracy and productivity which is why the rapid adoption of technology in the accounting industry is not surprising. While the pandemic induced lockdown did serve as a trigger for technology adoption, the accounting industry quickly realised its benefits especially for complex and time-intensive processes like Accounts Payable.
Here’s What Business & Accounting Firms Can Expect in Accounts Payable for the Year 2022:
A Surge in Accounts Payable Automation: Adoption of remote working models during the pandemic demanded the need for remote, secure and centralised access to financial information. The business had to move on from the manual AP process and look out for partial or complete automation of Accounts Payable that can help in performing all the essential AP functions in the remote work environment.
According to the Future workforce report, the global remote workforce is set to double by the year 2025 and the possibility of complete return to traditional work environments seems bleak. So naturally, this situation further increased the adoption of accounts payable automation software and tools and the automation is all set to take over the accounts payable in the year 2022 as well. So if your business is yet to adopt automation 2022 should be a perfect start.
Increased Demand for Cloud-based AP Solution & Integrations: Automated Accounts Payable solutions are usually of two types: on-premise and cloud solutions. While on-premise solutions were first to get adopted by accounting professionals, the surging remote working models now demand cloud-based AP solutions for their ability to provide online access from any part of the world.
In addition to this, adoption of AP integrations that enable efficient collaboration among different teams, and departments in the organization has picked up in 2021 and is expected to surge in 2022. Especially AP integration with ERP software can be a major upgrade for businesses aiming for faster and streamlined collaboration.
AI applications in Accounts Payable: Artificial Intelligence has become a game-changer in quantitative fields where repetitive actions are rife. By intelligently automating repetitive processes, artificial intelligence brings out valuable insights to improve business processes.
Being a high repetitive financial process, Accounts Payable can benefit from Artificial Intelligence. AI-powered automation of invoice process workflows reduces manpower, improves accuracy, and facilities optimal paths for saving money while improving cash management. This year Artificial Intelligence is set to play a more pronounced role in Accounts Payable helping AP staff to focus more on deriving insights for better business value.
Better Data Security with AP Automation: Given businesses are now adopting digitization, automation and cloud-based applications for Accounts Payable, the need for securing the financial information is higher than ever. However, with multi-factor authentication, comprehensive approval cycles, and KYC processes current AP automation tools provide multiple security features to avoid data compromise and cyber fraud. Accounts Payable trends in the past few years suggest improves security making automated AP solutions a force to reckon with.
Rise in outsourced Accounts Payable Services: Digitization and automation of Accounts Payable process enables faster processing times, improves accuracy lowers the cost of operations. AI-powered tools further increase productivity and help AP professionals derive insights to provide business value.
However, not all businesses can readily benefit from the digitization and automation of Accounts Payable which is why there has been a growing demand for outsourced Accounts Payable Services. A remote accounting firm equipped with the right AP technology stack can help a business efficiently organize the Accounts Payable process and streamline cash flow management of a business.
How Back Office Accountants Can help?
The COVID-19 pandemic has once again proved the age-old adage of necessity being the mother of innovation. Technology has breathed a new life into key accounting processes like Accounts Payable and Accounts Receivable and 2022 is going to see blazing fast adoption of these new trends. AP automation is here to stay and businesses that extract the most from automation technologies pave way for more efficient accounting operation and business growth.
If you are a business that is looking to leverage all the benefits of AP automation without having to spend eternity in building your own AP process from scratch, you can choose to outsource Accounts Payable to trusted remote accounting firms like Back Office Accountants.
With a team of expert CPAs and AP professionals, Back Office Accountants is equipped with advanced technology has been helping small, medium and large businesses with their Accounts Payable. Our Accounts Payable experts can build and execute high-performing Accounts Payable for your business and also provide assistance or plug gaps in the existing process to ensure greater ROI. You can contact us here: https://www.backofficeaccountants.com/