The world has come to recognize the role of technology in the future. From businesses to healthcare, from digital documents to automated workflows, more and more leaders have attempted to transform. Menial and tedious tasks are given to a machine to handle, and essential data and insights are gained thanks to technological innovations such as artificial intelligence. As a result of these conveniences, many developers have introduced various systems that may be used for specific business processes. One such system is known as accounts payable software or AP software for short.
Through the help of accounts payable software, businesses are introduced to the possibilities that technology can offer in terms of payment settlements and even invoice handling. Cash flow is essential in keeping a business successful. Unfortunately, money also invites preventable errors and unwanted crimes.
The goal of accounts payable software is to help companies find a solution that can help them handle something as essential as accounts payable processes. While this goal may be easily achieved through the right amount of human effort and technological assistance, it also implies the ability of accounts payable software to revolutionize the way businesses operate. Here are 5 ways that such a system can change how business is done in the upcoming years:
1. Elimination of Paper
Whereas the old days considered paper as gold considering the information it holds, using an accounts payable system will usher businesses into an environment where the paper is obsolete and wasteful. According to PYMNTS.com, 64% of B2B payments are still made with checks, which inevitably leads to an average of 18% in human errors. In terms of accounts payable processes, the consequences of these errors can prevent cash flow and cause unnecessary costs. As a result, accounts payable systems have become necessary in allowing a company to compete successfully, which then leads to the elimination of paper, at least in the accounting department.
2. Streamlined Accounts Management
Aside from removing paper in every step involved in managing accounting, an accounts payable system is also expected to raise the bar when it comes to how the accounting department manages its data. Accounts payable software features the ability to streamline accounts management processes by automating manual workflows and even payments. These features help accounts payable managers confront their position's challenges, which includes data and multiple accounts management. Thanks to this advantage, the future of doing business in terms of giving and receiving payments, as well as accounts handling, looks like it will involve more workflow automation.
3. Cost-Effective Accounting Solutions
The third way that accounts payable software will change how business is done is by providing a cost-effective accounting solution that does not sacrifice company security and budgeting efforts. Such systems achieve this by introducing a different way to receive and give payments. For instance, an accounts payable system can manage virtual credit card payments, thereby inherently changing how a business pays its suppliers and vice versa. Furthermore, an accounts payable solution also removes the hassle and costs of having to deal with theft, loss, and fraud – three of the many incidents that can cause dire consequences to a business and its leaders.
4. Analytics in Accounting
Beyond changing the way payments are completed, received, and managed, an accounts payable system also adds the use of analytics into the mix. This addition doesn't usually involve anything beyond seeing how the company is doing in terms of its cash flow. However, because accounts payable software includes the ability to take advantage of the data it uses to operate as intended, it also yields the analytics needed to achieve transparency and understanding of what payments are unnecessary and where the money goes at all times. Due to this feature, the future of doing business will involve a level of budget reports and financial analysis that cannot be achieved through traditional accounting workflows.
5. Emphasis on Security
The final way that accounts payable software will change how business is done involves security. For one, the use of this form of technology will prompt clients and customers to focus more on data security, especially considering how financial data is migrated to a machine. Companies are expected to become even more vigilant to security breaches and risks that can endanger the confidential and sensitive information stored in the platform. On the other hand, the use of an accounts payable system also exhibits the level of security that can be achieved through technology – one that is impossible for companies whose accounting process mainly involves paper. Compared to digital data, paper can be lost and blemished, thereby endangering the company's information. Thus, the future of business will involve better accounting security expectations thanks to the standards that accounts payable software has established.
Changing Accounting and Business Processes
Recent accounting software statistics indicate that businesses are well on their way to revolutionizing payment processes to become digital and virtual wherever possible. If your company has yet to employ an accounts payable system, you'll have trouble keeping up the future of business operations, considering the ways it will change how business is done. Consider the accounting processes that your team handles. Think about the costs that came about because of human error.
Finally, if you think it has a place in your department, find a vendor to help you revolutionize the way you manage your business' accounts payable.
Ben Frank is a creative Digital Marketing guru with a passion for getting relevant information into the hands of the people who need it the most. When he isn't researching innovative tech in the world of Finance and Accounts Payable/ Accounts Receivable, he's usually trying to convince his 3-year-old German Shepherd that he's not a hooman, he's a dog.
Listed by CFO Tech as one of the Top 10 Accounts Payable Solution Providers 2018 and 2019 and by CIO Review as part of the 20 Most Promising Corporate Finance Tech companies for 2017, OnPay Solutions streamlines processes for accounts payable by automating invoice processing and payments.