Stepping into Tomorrow: Top 8 Accounts Payable Automation Trends for 2024

Recently updated on July 31st, 2024 at 05:32 am

Think about how it took nearly ten years for mobile apps to become as advanced as they are today, starting from the time when the first smartphones arrived. Well, that might seem slow when compared to the rapid adoption of another technological marvel: Accounts Payable (AP) automation solutions. These changes are happening quickly, and they’re not just speeding things up; they’re also completely changing how we handle our AP and business operations.

As we’re about to enter the year 2024, join us on a journey to explore seven exciting trends in a world where making payments and handling money is not just easier but also more interesting. In the following blog, we’ll talk about leaving behind old-fashioned ways to create strong relationships with the people we do business with. Welcome to the future of AP automation, where there are endless possibilities, and things are always moving fast.

What Are AP Automation Trends?

Before we get into the specifics, let’s define AP automation trends and why they’re important. The strategies, tools, and techniques that businesses use to automate their accounts payable process to improve productivity, cut costs, and manage risks, including data theft, fraudulent payments, and more, are collectively referred to as AP automation trends. For organizations trying to preserve a competitive edge and adjust to shifting market dynamics, staying informed about these trends is essential.

Key AP Automation Trends to Know

1. Data Capture with Smart Optical Character Recognition

The arduous process of manually processing invoices and payments is about to come to an end. We’re going to notice a significant change away from all that demanding effort in 2024. Instead, we’re turning to intelligent systems powered by cutting-edge technology such as smart data capture and automation. The groundbreaking OCR (Optical Character Recognition) technology is going to handle labor-intensive tasks such as fetching correct data from multiple and diverse types of invoices, helping AP staff to reduce errors.

Did you know? A survey shows that 41% of firms are planning to automate their AP processes in the coming years.

So, what does this entail for businesses like yours? Well, it includes fewer mistakes, faster processing time, and less stress. Imagine your team no longer needing to spend time and effort manually entering data from invoices, which can be error prone. The day has been saved by OCR and data capture feature!

2. Remote Work Intensifies the Pressure to Automate AP Processes

With more employees working from different locations, it’s necessary to have a system that keeps everything functioning smoothly. Cloud-based AP solutions can help with it. They make sure that our job continues without a hitch regardless of where we are.

Fun fact: Around 49% of CFOs and finance executives believe remote work will eventually become permanent for some roles.

Working from home has become the new standard, and in 2024, this trend is anticipated to continue. But how can you maintain efficient financial operations when your workforce is dispersed all over the place? The answer is cloud-based AP solutions. They offer a centralized platform that is accessible from anywhere, guaranteeing that payments are made on time and that invoices are processed.

3. ERP and AP Systems are Merging

Think of it as two puzzle pieces coming together to create something awesome. By 2024, AP automation solutions and Enterprise Resource Planning (ERP) systems will be joining forces. It’s not just about sophisticated integration; it’s about improving the functionality of operations and streamlining data flow.

Integrating automated payment solutions into your ERP platform can cut your operational costs by up to 40% for each transaction. Impressive, right?

Imagine having a solution that smoothly integrates all of your financial data. That is what happens when the ERP and AP systems are integrated. This integration provides consistency of data across the organization, minimizing duplication and increasing overall efficiency. Additionally, it makes reporting and decision-making simpler, resulting in a well-oiled accounts payable process.

4. Value of AP Increases with Instant Reporting

We’re not just processing invoices in the background anymore. Thanks to instant reporting and clever data analysis, AP is becoming a star player. The information that the AP team receives from automation is being used to make incredibly sound decisions and increase efficiency.

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Here’s something interesting: 38% of AP professionals want to implement automation solutions to reduce payment errors.

Well, real-time reporting through mobile applications can solve payment errors. AP managers or admin can approve payments and invoices on-the-go, eventually reducing bottlenecks and unauthorized payments. You can take immediate action, discover trends, and improve your cash flow with real-time data at your disposal. Additionally, it’s not just about fixing mistakes; it’s also about taking advantage of opportunities, like receiving early payment discounts.

5. Multi-Factor Authentication to Reduce Cyberattacks

As we embrace automation, there’s a flip side to the coin. We need to safeguard ourselves even more as our reliance on technology increases. We must be prepared since cyberattacks and cunning scammers are on the rise. In 2024, AP automation solutions come fortified with advanced measures like multi-factor authentication and encryption to safeguard your data.

Watch out! Automation solutions with multi-factor authentication have proven to be 99.9% effective when it comes to stopping automated cyberattacks.

Ensuring the security of your AP operations is not just a choice; it’s an absolute necessity. Cybersecurity is crucial in a business where electronic transactions are the norm. To protect your company’s assets and goodwill, it is essential to protect confidential data.

6. Automated Three-way Matching

Three-way matching simplifies accounts payable. It aligns invoices, purchase orders, and goods receipts to ensure:

• Invoice matches purchase order
• Correct items are delivered
• Payment approval

This automated process not only saves time but prevents “Maverick Spend” – unauthorized purchases. As the old saying goes, time is money. However, an automated 3-way matching system not only saves you money over time, but it also stops your business from making fake purchases, or “Maverick Spend.” Up to 80% of invoices in a firm may come from unregulated purchasing. Read it again: 80%!

7. Cloud-based AP Automation

Imagine having all your work stored in a virtual space that’s super easy to use. That’s what the cloud offers. It’s not just about storage; it’s about working together, having access to data from anywhere, and getting updates without any fuss.

According to Gartner, systems with cloud support will host more than 95% of new digital workloads. Mind-blowing, right?

The cloud isn’t just a place to store your data; it’s a game-changer for collaboration and efficiency. With cloud-based AP solutions, your team can access information from anywhere, collaborate seamlessly, and receive updates and improvements without the hassle of manual updates. Plus, it’s cost-effective, saving you money while boosting productivity.

8. Automated Payments Strengthen Vendor Relationships

The exciting part is that we’re leveraging automation to enhance our interactions with vendors. Automated payments make everything more transparent, move more quickly, and reward on-time payments. It all comes down to mutual respect and teamwork with those we conduct business with.

Check this out: Companies are prioritizing accounts payable automation to keep up, since 41% of buyers in the last year paid late penalties as a result of late payments.

Improving vendor relationships is critical for every organization. Automated payments not only make your life simpler but also communicate to your vendors how much you appreciate their work. A win-win scenario for all parties can be achieved by transparency, faster transactions, and incentives for early payments.

2024 looks like a year of incredible change in the world of accounts payable. We’re leaving old-school manual methods behind and embracing smart technology like never before. With these trends, we’re not just making things more efficient; we’re making finance an exciting and vibrant part of our businesses.

So, welcome to the future of AP. It’s going to be an exhilarating ride!

Published on: 26 September 2023

Author

John Bugh

John Bugh is Chief Revenue Officer for PathQuest, responsible for the strategic direction, planning, vision, growth, and performance of the company’s marketing, branding, and revenue streams.

As a seasoned professional with over 35 years of experience in executive sales, marketing, and operational leadership, John has worked to build high-performing leadership-teams that have a demonstrated track record of accelerating growth, increasing revenue, establishing sustainability, and improving profitability.