Latest Trends in Accounts Payable

Latest Trends in Accounts Payable

By CFO Tech Outlook | Friday, June 26, 2020

For the last few years, the accounts payable sector has witnessed significant growth, owing to the modern tools and techniques used. 2020 is believed to further transform the shape of Accounts Payable, unfolding the new trends.

Fremont, CA: The leading technologies have brought in a transformation in the Account payable (AP) trends. The year 2019 witnessed four areas where technological advancements reshaped the existing strategies of AP. Along with these progressions, 2020 is expected to focus on five major aspects in the field of AP.

The transformations in AP, in 2019 were dotted by Automation, Fraud Prevention, improved Data Leveraging techniques, and Skill Development.

With further improvisations to all of these, 2020 can be highlighted with the five following key trends.

Modernization 

Modernization in the approach of hiring and training workers with up to date skills is believed to be a new trend. On the one hand, companies require skilled workers to adopt and operate modern tools efficiently and on the other hand, have access to these resources for training their workers with new skills. According to a Levvel survey, proper use of automation can save up to $152,000 per day with the strength of five full-time AP clerks dealing with twenty invoices and five vendors inquires.

Strategizing growth

Top 10 Accounts Payable Solution Companies - 2019Considering mergers and acquisitions could help to expand the business. When the company lacks certain services, it can consider the acquisition of a smaller company that can cover the deficiencies of the particular services.

Adopting cloud

Complying with GDPR and low in cost, cloud technology has been a successful step for companies. Moreover, cloud could make data accessibility and real-time implementation more effective and faster for PA.

Facial recognition

Just like the Smartphones have switched to fingerprints and facial recognition modes for security purposes, PA trends are also expected to make the maximum use of this technology. This might substitute the use of credit cards and QR codes of payments. 

Artificial Intelligence (AI)

AI is not something new in the AP domain; however, the fast-paced technologies indicate its further advancement in this field. A report of Sage Practice Now 2018 calculated that 66 percent of accountants invest in automation of AP with AI and 55 percent plan to incorporate AI to improve their business. 

The upcoming days are crucial for businesses in terms of the strategies they would need to survive the competition. The new goals and strategies that are to be inculcated into AP are designed in a way to improve decision making, allocate resources optimally, and therefore meet the expectations of the market.

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