As the New Year begins, it’s exciting to wonder what new trends are in store for 2016, especially for accounts payable (AP).
As companies embrace technology to digitize their company, they will have the opportunity to process an invoice up to 65% faster and lower processing costs as much as 60% thanks to the ongoing improvements and advancements in AP automation solutions.
Companies that have made the switch to automated AP invoicing are realizing the value they are harnessing and the functionality that it brings to their organization, as accounting departments can now focus more on strategic and business-critical activities.
3 Accounts Payable Trends in 2016
AP has come a long way, and we can expect the following three trends in 2016:
- Improving processes:
As technology continues to advance, it’s expected that the focus will continue to shift to the collection and analysis of financial information to improve AP processes. Companies will be looking to automation software in order to power better budgeting, planning and forecasting. Data within invoices can be used by procurement to uncover spending patterns and finance can identify opportunities for discounts through early payment.
- Eliminating paper:
Due to the ever-present “go green” movement and the gaining popularity of automation software, the push for a paperless office will be especially prevalent. More and more companies are aware of how cumbersome and costly paper-based processes have become, especially for the accounting departments. Compliance, accuracy, security and efficiency are critical to a company, and organizations are coming to terms with the obvious problems paper causes. Automation software can help improve these critical aspects as well as save money and maximize employee’s time.
- Increasing cloud adoption:
Because of virtually unlimited and more secure storage, we will continue to see more companies adopting cloud-based AP automation rather than on-premises solutions. Companies will gravitate to cloud-based automation due to several factors, including: decrease in expenses thanks to full-time IT services and no additional hardware or software investments, greater flexibility and scalability, accessibility from anywhere in the world 24/7, up-to-date software, and enhanced document security.
As you begin the New Year be on the look out for these three AP trends. Take some time to analyze your accounting department and make sure you’re on the right track for a successful 2016. In fact, get a head start by downloading this guidebook 12 Steps to Kick Your Paper Habit.