6 Trending Concepts that are Going to Change Accounts Receivable in 2022
Find Out the Six trend Set to Transform Account Receivables in 2022
- Automated AR Processes
The accounts receivable process is set to change dramatically in the next few years, with automation becoming a key focus. Automated processes are more efficient and accurate than manual processes, and they can help businesses reduce the time it takes to collect payments from customers. You can also integrate online billing software to get the maximum output.
In particular, businesses are expected to increasingly adopt robotic process automation (RPA) to automate their accounts receivable processes. RPA involves using software robots that can automate tasks such as data entry and handling customer queries. This can help reduce the time it takes to process payments, resolve issues, and make decisions.
2. Contactless Transactions
When it comes to payments, contactless transactions are becoming more popular. NFC (Near Field Communication) technology is the key driver in the rise of contactless transactions, and this is set to continue in the future. Contactless payments have many benefits, including being accessible to anyone with a compatible card — regardless of their geographical location. In addition, contactless payments take less time than other payment methods.
The increased uptake of contactless transactions is set to impact the accounts receivable industry directly. For instance, it will make collecting payments more efficient and improve cash flow for businesses that offer this payment option. Recurring billing software can also resolve the issue. Moreover, the ability to collect funds quickly can help increase customer loyalty and encourage customers to spend more.
3. Finance Leasing
In recent years, finance leasing has developed as a form of financing used by businesses in the accounts receivable industry. Although this type of funding is far from new, it is becoming an increasingly popular option for companies and is expected to continue gaining momentum over the next few years.
Finance leasing is similar to other forms of financing in that it enables businesses to borrow money for a set period of time, with the option to buy at the end of this period. This type of funding can benefit start-ups and small businesses due to its flexibility and ease of use.
4. Finally Mastering Master Data
One of the biggest challenges that businesses face is managing their master data. This refers to the data that is used to identify and describe the various entities within a company — such as customers, suppliers, and products. The quality of master data can significantly impact a business’s operations, and it is essential to ensure that this data is accurate and up-to-date.
Unfortunately, managing master data can be difficult, and businesses often struggle to keep track of all the changes. In order to overcome this challenge, companies are expected to rely on artificial intelligence (AI) and machine learning technologies increasingly.
These technologies can help identify and correct errors in master data and keep track of changes. This can help businesses maintain a high level of accuracy and completeness in their master data, which is essential for effective operations. However, expense management software can also help you to resolve the issue.
5. AI-Generated Cash Flow Forecasts
The AI-generated cash flow forecasts and analytics will change how businesses leverage their financial data. This technology will allow companies to identify cash flows, trends, and other business information that will assist in the forecasting of future profitability.
Artificial Intelligence (AI) and the accounts receivable and credit management process automation are set to improve companies’ cash flow. The AI will collect data analyzed by machine learning technology and transform it into real-time algorithms for predicting future cash flows and financial health. Thus the technology will allow business leaders to make better decisions for their companies.
6. Greater Use of Electronic Payments
The use of electronic payments will increase by 2022. A study by The Federal Reserve Bank of Boston predicts that the number and value of non-cash transactions in United States retail stores could reach 240 billion annually or about 48% higher than current levels.
This would be because business owners realize its advantages, such as improved security for themselves and their customers, reduced fraud rates, less cash handling needed at checkout counters, and faster checkout times.
With the increase in customer preferences toward digital payment, businesses are also expected to make electronic payments more seamless by building business practices that will improve payment systems. This has already been done by companies such as Amazon and PayPal.
7. Increased Invoice Management
Another trend that will transform accounts receivable in 2022 is increased invoice management. Many businesses are looking for ways to improve their invoicing and collections processes. Automated invoice management systems can help to streamline these processes and make them more efficient. You can also integrate subscription billing software to leverage more benefits.
An increase in invoice management can help to reduce costs. This, in turn, will allow businesses to make better business decisions regarding their cash flow.
Discipline You Account Receivable with Invoicera
Invoicera is cloud-based online invoice software to manage all your business invoices and accounting. It is a perfect tool for small and medium-sized businesses. The software helps you to automate the billing so that you can get paid from clients on time.
Companies in over 175 countries worldwide use Invoicera to organize their finances better, grow their business faster, and generate more revenue.
You can track your business performance in real-time, know when a client has opened an invoice, and make payment on it. In case of any overdue invoices, you can send email reminders to your customers and ultimately send payment reminders to keep you updated on the status of pending payments.
Concluding Lines
The trends mentioned above will have a significant impact on the accounts receivable industry. AI-based technology will allow businesses to generate cash flow forecasts, increase electronic payments, and automate invoice management. It will also help them reduce the costs involved in accounts receivable processes.
Unwillingness to accept technological change can be harmful for businesses. Business leaders should pay attention to these changes and understand how their companies can benefit from them. Understanding technological trends can help business leaders to take advantage of them and make better decisions for their companies.
