5 Gigantic Influences of Accounts Payable Trends for 2020

Posted on 1st Jun 2020

Article by:Kapil Rana

As time moves on, so does the advancement in technology. Many new trends have emerged over the years that have made our daily life easier and convenient. But it has not stopped us from developing new technologies that are more advanced and benefit us in all possible manners.

It is also important that the accountancy industry be aware of all the future accounting software developments and the upcoming technologies, along with their effects and the possible repercussions.

As more and more trends come into existence, there are a few who leave their mark permanently and over time we find ourselves getting used to these technologies.

The constant change in technologies is said to be the future. It has changed the face of various sectors of our society and is progressing every day to leave its imprint in such a manner that in the coming years, it might threaten many human jobs. In the beginning, we were used to manual processes but with the emergence of new technologies and trends, we have grown used to things being done for us.

Accounts payable has succumbed to its effect as well. The sector is changing drastically with the advancement in technology. It is thus, important for us to beware of the most promising account payable trends for 2020. Technologies like Bookkeeping Software, Web-Based Accounting and many more have already become so common among the finance industry.

#1. Automation in AP will become an Inevitability
Though this trend has been around for quite some time, it is yet to be fully applied by various organizations. Accounts payable automation is no longer regarded as a luxury that is available only to big corporations or firms. It has become an inevitable requirement to keep up with the constant changes taking place every day.

Paper invoices have become an inconvenience and are a cumbersome lot to manage. There was a time when paper processes were regarded as the heart of accounts payable but with the advancement taking place these days, many beg to differ. Some of the best Accounting Software has started to take the place of the employees already.

Automation of accounts payable is not only a method of quicker invoice approval, increase in productivity but it also helps in reducing the costs by large amounts.

If you wish to make your mark in the current business scenario then, AP automation is a valuable commodity that you have to utilize. There is Small Business Accounting Software which has been created with the help of AI with many other online accounting features.

#2. Learning to Leverage AP Data
Many organizations are completely unaware of the amount of unused data they are sitting on. They are not being able to make better use of it in a way that will be beneficial for them. AP teams should be compatible enough to leverage the data in such a manner that the company is able to transform successfully and is able to achieve its desired set of goals.

Though the process is time-consuming and approving an invoice or finding out the data entry mistakes can be tiresome, over some time. The AP team will be able to gain significant insights into the working and functioning of various departments and the various individuals that are present in them, and with this knowledge, they will help the company in a better manner.

Other than that, AP can also help manage the financial matters of the company, not only will it manage the cash flow throughout the corporation it will also fortify the AP.

#3. Say yes to Cloud Technology
Over the years, the cloud has emerged as an important part of various applications. But along with that, the cloud plays a significant role in the business climate. We are already aware of the fact that our emails, store documents, and other applications are compared by cloud.

Another reason why the cloud has risen to such popularity is that it is a cost-effective technology. Companies are known to switch to Cloud Accounting Software in order to increase their revenue. It also makes sure that the invoices are always reviewed and paid on time without any hassle.

The cloud solutions are made public so it is easier to share the upgrade in the product and new features with the other cloud customers on a consistent basis.

#4. Having a Prominent Skillset to keep up with the change
Accounts payable has transformed from its traditional transactional function and has come to be known as an important strategic hub. With constant changes in trends taking place all the time, various skills have become prominent and important. Data entry skills, competent knowledge in accounting regulations and various other fundamental skills have emerged to be of utmost importance.

Interpretation of data and understanding business analysis has become progressively important. These skills will also play a major role in retaining your position against the implementation of robotics and artificial intelligence.

It is necessary that artificial intelligence does not take over every aspect of human employment.

#5. Avoiding and Preventing Fraud
Every company has fraud inhibition as their topmost worry. Companies suffering from vicious cases of fraud are not unheard of. Even big companies go through such inconveniences. And thus, it is very important to install respective software to prevent such cases from occurring frequently.

Many companies have upgraded their system with software that prevents fraud. Security policies are being upgraded to ensure the safety of the companies. One of the simplest ways of preventing fraud is getting rid of a paper trail. Inventory Management software that keeps you updated about all the information you need, be it about keeping a track of all the sales or purchases or stock level.

Wire transactions are safer and easier whereas paper cheques are not only cumbersome but are an open invitation to fraud. However, one cannot turn a blind eye to online fraud cases and thus proper prevention measures should be adopted at all costs.