In today’s fast-paced business era, organizations continually seek innovative methods to enhance their financial processes and streamline operations. Accounts payable outsourcing is one industry that has had substantial growth and development recently.
In 2022, the global finance and accounting business process outsourcing market was worth USD 56.42 billion and is predicted to increase at a CAGR of 9.1% from 2023 to 2030. The expansion may be attributed to the rising demand for trustworthy and cost-effective services using new technology and the development of the BPO industry in emerging nations.
Numerous trends are altering how businesses handle accounts payable (AP) due to the rate of technology advancement and easier access to internet-based applications.
Future Trends in Accounts Payable Outsourcing
Companies can save money, increase productivity, and get access to specialist knowledge by outsourcing accounts payable tasks to outsourcing companies.
Below are some future trends in accounts payable outsourcing that can disrupt the industry.
1. Automation and Artificial Intelligence
Artificial intelligence (AI) and machine learning (ML) are among the most popular AP automation trends in recent years. AI has recently made significant improvements to AP cycles, from identifying duplicate invoices to managing invoice coding and routing bills for approval. The use of AI in combination with previous automation methods like OCR (Optical Character Recognition) to extract data with much more precision and teach the system to learn on its own has also undergone a fundamental shift.
ARDEM offers an accounts payable automation solution through their proprietary software, the ARDEM Invoice Capture & Extraction (AIM). AIM boasts a 99.7% accuracy rate in extracting and processing invoice data. By leveraging our automation solution, businesses can streamline their accounts payable process and achieve greater efficiency.
2. Cloud-Based Solutions
Cloud-based solutions are becoming increasingly common in the AP outsourcing market since they give companies access to AP data and procedures from any location while enhancing security, scalability, and cost-effectiveness. Companies may better manage their AP activities by partnering with a third-party outsourcer like ARDEM, who can aid by expediting invoice approval procedures and lowering the risk of data breaches and other security events.
3. Data Analytics and Reporting
Accounts payable is growing increasingly dependent on data analytics and reporting since they may give companies insight into their payment procedures and help them find areas for improvement. Businesses may spot bottlenecks and inefficiencies and decide on their accounts payable strategy by carefully evaluating data such as supplier performance, payment timeliness, and trends in invoice quantities and amounts.
To efficiently use data analytics for better and more detailed accounts payable reporting, businesses can connect with outsourcing companies like ARDEM and improve operational efficiency & reduce costs.
4. Blockchain Technology
Businesses’ management of accounts payable operations may change due to blockchain technology. Organizations may reduce the chance of errors and fraud while improving the transparency of their AP processes by using a secure, decentralized ledger to monitor financial transactions. The adoption of blockchain technology to enhance AP operations is predicted to increase in 2023.
5. Increased Adoption of E-Payments
Electronic payments, or E-payments, are becoming more and more common in accounts payable due to their benefits over conventional payment systems. These payments can be made more quickly, securely, and in various ways, including credit cards, mobile payments, and internet banking. E-payments also lessen the chance of fraud and errors while giving businesses more insight and control over their cash flows.
Conclusion
The accounts payable environment is continuously evolving, and it is anticipated that 2023 will bring about numerous trends that will transform this landscape. Adopting automation, artificial intelligence, cloud-based solutions, and blockchain technology will revolutionize accounts payable outsourcing in the coming years.
To stay ahead of the curve, businesses can leverage the latest technologies and engage with the best outsourcing company to optimize their AP processes
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at pricing@ardem.com or call us at 908-359-2600.
