Outsourcing often benefits from allowing businesses to take advantage of cutting-edge technology through a financial institution or third-party resource, without the time and cost of implementing internal systems.
FREMONT, CA: Modern encompasses a wide range of topics, including art, language, architecture, and treasury management. But, exactly, what does a ‘modern’ Accounts Payable (AP) and Accounts Receivable (AR) work entail? And how many businesses have succeeded in creating a completely integrated and productive digital environment?
Automation and Competence Exemplify Modern Finance
A modern treasury prioritizes tools and processes that boost performance, lower costs, simplify knowledge access, and effectively use internal resources. These enhancements add measurable value in normal operations, but they are much more valuable during the COVID-19 pandemic. Companies use a broad range of solutions to achieve their modernization targets, according to one study. Digital payment systems, electronic filing, and emerging technologies such as Artificial Intelligence (AI) and bots are examples of these.
Early adopters in accounts payable cite the importance of digital resources such as:
- Optical Character Recognition (OCR) and Scanning of incoming supplier invoices.
- Streamline monitoring, communication, and approvals with workflow management solutions.
- Vendor management services.
- Sanctioned party filtering.
Modern treasury processes take advantage of the following in accounts receivable:
- Customer invoices are delivered electronically.
- Incoming payment information is scanned to minimize data entry.
- A single, integrated receivables file to speed up posting.
- Customers from a bank or a third party are onboarded.
- Logging into consumer AP systems and retrieving payment credentials using automated bots.
Outsourcing Gaining Traction as A Flexible Solution
Another common alternative for creating a modern AP and AR feature is outsourcing. Outsourcing to banks,payment processors, fintechs, and other specialty providers allow businesses to take advantage of digital technologies while still allowing them to scale up or down as volume demands. In addition, there is a lower initial investment in capital equipment or in-house systems.
Outsourced processing results in higher straight-through processing rates, greater cash flow, improved timing control, and less pressure on in-house resources. Outsourcing often benefits from allowing businesses to take advantage of cutting-edge technology through a financial institution or third-party resource, without the time and cost of implementing internal systems. Outsourcing is particularly appealing during the stressful working conditions of the COVID-19 pandemic because of this simple transition.
