The realm of Accounts Payable (AP) has experienced considerable evolution, particularly in the face of the COVID-19 pandemic. As businesses are navigating towards recovery and growth, certain emerging trends in AP are set to redefine the finance industry's landscape. Here's a look into some future trends that will likely shape the AP sector, according to Ardent Partners' Accounts Payable Metrics that Matter in 2023 research.
Increasing Automation
The drive towards automation is not a new trend in AP, but its momentum has certainly picked up. The adoption of AP automation tools, such as electronic invoicing solutions and automated B2B payment solutions, is set to increase further, aiming to streamline processes and improve efficiency. Expect to see a rise in the adoption of ePayables solutions as organizations continue to leverage technology to optimize their AP operations.
Data-Driven Decision-Making
The future of AP lies in harnessing the power of data for strategic decision-making. Progressive AP teams are utilizing transactional data more and more to gain a clear view of organizational spend and to improve operations. Expect data-driven decision-making to become a cornerstone of AP functions, with a focus on cash flow analysis, forecasting, budgeting, planning, and fraud and compliance management.
Emphasis on Touchless Processing
The use of technology to automate manual processes and facilitate 'touchless' invoice processing is a growing trend. Straight-through processing rates are becoming a measure of an AP operation's overall maturity, reducing costs and speeding up workflows.
Integration and Collaboration
As the role of AP within organizations becomes more strategic, the future will see a greater emphasis on integration and collaboration. The push towards a single Procure-to-Pay (P2P) function could see AP working more closely with key stakeholders, offering a holistic approach to managing finance.
Skill Development and Transformation
With the shift from transactional to strategic, AP professionals are required to bring new skills to the fore. Fraud detection, comprehensive understanding of the P2P process, core AP reporting, analysis, and a customer service mindset are now becoming essential competencies in the field.
The future of AP is bright, marked by technology-driven change and a shift towards a more strategic function within businesses. These trends offer exciting opportunities for AP professionals and organizations willing to invest in and adapt to these transformations. As AP continues to evolve and mature, its role as a strategic powerhouse within the organization will continue to solidify, heralding a new era in finance and business operations.