The year 2023 marked a pivotal moment in finance and the world at large, reshaping our perceptions of what is possible with Artificial Intelligence. In light of the past year and its learnings, in this blog, we will explore three strategies for optimising your company's AP in the rapidly evolving environment in 2024.
1. Strive for Autonomy, Not Just Automation
Automated vs Autonomous AP Tools
Automated AP Tools
Traditionally, automated AP tools have played a crucial role in streamlining routine tasks. Utilising software systems that operate based on predefined rules, these tools have been instrumental in simplifying processes like data extraction from invoices via Optical Character Recognition (OCR). However, they often require human intervention for exceptions and unique cases.
Autonomous AP Tools
Enter the era of autonomous AP tools, with pioneers like Kloo leading the charge. These tools marry AI with existing technologies to achieve unprecedented levels of accuracy and efficiency. Moving beyond rule-based automation, they are capable of intelligently handling complex scenarios and exceptions through context-based decisions. This dramatic shift reduces the need for human intervention, saving AP teams countless hours each week. As we progress, AI-driven systems will evolve from executing predefined tasks to making independent decisions, thus minimising manual intervention and preventing unnecessary expenditures.
2. Focus on User Experience
The importance of user experience (UX) in Accounts Payable cannot be overstated. Simplifying the user interface of complex financial systems like ERPs is not just about ease of use; it has far-reaching implications for the overall efficiency and effectiveness of AP processes.
Team Buy-In
When users encounter an intuitive and straightforward system, their willingness to use the tool improves significantly. Kloo's streamlined user experience eliminates the common challenges and confusion of using bulky ERP systems. This increased engagement is vital for the accurate and efficient completion of tasks.
Timely Approvals
A more accessible and straightforward UX directly translates to quicker and more reliable approval processes. Business-side users are more likely to timely approve purchase requests when the system is easy to navigate and understand. This not only speeds up the AP cycle but also ensures that Purchase Requests are used correctly and in alignment with company policies. The knock-on effect is a more streamlined, compliant, and efficient AP process.
A user-friendly interface enhances the speed and reliability of approval workflows. When the system is straightforward and integrated with existing tools, approvers are more likely to carry out their approvals in a timely manner. This both speeds up the procurement cycle and also guarantees adherence to company policy.
For more insights into the importance of UX in AP, visit Kloo's blog on the subject.
3. Give the Right Permissions to the Right People
Managing Access in ERP Systems
A key strategy in optimising AP is the judicious allocation of user permissions, especially in complex ERP systems. While these systems are indispensable for finance teams, their complexity can be a hindrance for business-side users. By implementing simple and effective permission settings, platforms like Kloo ensure that users have access to the necessary tools without being overwhelmed by the intricate workings of the ERP. This approach not only enhances efficiency but also maintains the integrity and security of financial processes.
Key Takeaways
In conclusion, the realm of Accounts Payable is undergoing a profound transformation. What was once a time-consuming and labour-intensive task is evolving into a streamlined, strategic function. By focusing on the transition from automation to autonomy, prioritising user experience, and meticulously managing user permissions, businesses can harness the full potential of their AP departments. As we continue into 2024 and beyond, these strategies will be pivotal in enabling AP teams to focus on more strategic tasks, driving efficiency and innovation in the world of finance.
