Takeaways from the Esker-Forrester Webinar

In a recent Esker webinar titled "AP & AR Automation Trends: Strategic Insights for Finance Leaders," Forrester analyst Meng Lei, along with Esker Product Managers Catherine Dupuy-Holdich and Maud Berger, explored key trends shaping the future of Accounts Payable and Accounts Receivable automation. The conversation was filled with valuable insights and perspectives, and we’ve highlighted several key takeaways that are worth sharing.

Four key drivers behind the shift to Accounts Payable and Accounts Receivable Automation

A growing number of businesses are choosing to automate their accounts payable (AP) and accounts receivable (AR) processes. Key factors driving this shift include:

• Ongoing economic uncertainty: CFOs look for robust tools to support good decision-making in unpredictable markets, making automation a strategic priority.
• Focus on cashflow and cash availability: In complex economic conditions, cashflow and cash reserves are critical. Automation provides accurate, timely data for forecasting and preparing for a variety of circumstances and outcomes.
• Catalyst for internal digital transformation: Automating the Office of the CFO accelerates internal digitalization, thereby generating more efficient financial processes. This also creates a domino effect, resulting in digital projects for both purchasers and vendors.
• Evolving global e-invoicing regulations: With global e-invoicing standards evolving, automation helps companies reduce operational complexity by moving away from paper-based, manual processes.

Top benefits of automating Accounts Payable and Accounts Receivable

Automating AP and AR processes offers several major benefits for financial operations:

• Enhanced invoice data capture: Automation improves data capture for both structured and unstructured invoices, reducing errors, increasing accuracy and significantly decreasing the burden on the team.
• Streamlined invoice reconciliation: By automating reconciliation, companies can eliminate manual tasks and speed up invoice processing.
• Valuable financial insights: Automation provides real-time financial insights, aiding in decision-making and strategic planning.

Connecting Accounts Payable and Accounts Receivable processes further optimizes financial operations. The SaaS model, with its scalability, up-to-dateness, and seamless integration with other systems (ERPs, CRMs, etc.) and departments (Purchasing, Sales, etc.), emerges as the ideal choice for maximizing these automation benefits.

How AI is transforming business processes

Integrating various AI technologies, like machine learning, predictive and generative AI, into business operations, is quickly becoming a necessity to keep up with what is happening on the market. AI capabilities are gradually replacing RPA, which, along with natural language processing, has been widely used for tasks like invoice data capture up until now. The more advanced technologies enable a higher degree of precision analytics and reporting, optimized predictions, improved cash management, and a reduction in fraud exposure and errors such as duplicate payments. Furthermore, AI-supported task prioritization strengthens relationships between customers and suppliers, helping businesses operate more efficiently.

To achieve the best results using these new technologies, it is essential to ensure seamless connectivity between internal applications and external resources, like credit agencies. This integration facilitates informed decision-making and enhances the user experience by providing teams with better data and accurate forecasts.

Making automation a strategic priority in finance and digital transformation

All in all, automating AP and AR processes improves efficiency and allows for the mitigation of risks, including fraud and non-compliance. Relationships are strengthened, both internally between departments and externally, with suppliers and customers.

Three concluding takeaways for businesses considering automation as part of their financial and digital transformation strategy include the:

• Strategic prioritization of automation: Focusing on finance process automation and digital transformation initiatives will pay off immensely, not only reducing costs but generating new revenue by providing a better customer experience while simultaneously improving both the purchasing and supplier experiences
• Selection of the right solution provider: Choosing a solution provider with the optimal blend of process optimization, streamlined workflows and advanced AI capabilities is essential to maximize your investment.
• Embracing a cross-functional approach: A successful automation initiative involves collaboration beyond the Office of the CFO. Teams such as Procurement, Compliance, and IT play integral roles in ensuring the full benefits of automation are realized.