January 25, 2023 Top Four AP Automation Predictions for 2023

Medius, a leader in AP automation, shares its Top Four AP Automation Predictions for 2023.

Medius, a leader in AP automation, would like to share its “Top 4 AP Automation Predictions for 2023” in the world of automated payments, innovative financial solutions, short-term financial planning and the rise of B2B and payments fraud. Branden Jenkins, Chief Operating Officer of Medius, provides further insight on the predictions below. 

Medius Predictions 2023

Prediction #1: Business will turn to more end-to-end automated payment processes
Business leaders will need to grow in efficiency as well as in revenue in 2023. Those companies with overly complex and unnecessary manual AP processes will quickly drain operational flow and resources – including impacting their employees very quickly! In order to keep agile, alert and ahead in an increasingly digital economy, payments processes will need to be automated end-to-end, to efficiently spot and flag risk areas and fraudulent activity within businesses. 

Prediction #2: Invoice & B2B Payment fraud on the rise – and likely to rise further
Given that the average business loses over $280,000 each year worldwide (under normal circumstances), it’s highly likely fraudulent activity will increase in the workplace during an ongoing economic downturn. Since businesses cannot afford to lose substantial cash flows in 2023, those businesses with consistent and efficient collaborative finance and IT departments are far more likely to proactively flag unusual transactions and paradigms – thereby mitigating/preventing invoice and payment fraud.   

Prediction #3: Organizations will begin to focus on short-term plans for their financial strategy  
Pre-pandemic organizations used to prioritize having long-term plans that stretched beyond the conventional ‘5-year business plan’. But due to the pandemic and the looming recession we expect to see businesses shift focus towards short-term financial strategies as they look to become agile and counter the constantly changing business environment. Currently, 52% of businesses have medium-term business plans, whilst only 13% have any sort of short-term plan – however, we feel this is due to change as economic headwinds gather speed. 

Prediction #4: Automation is giving birth to innovation within finance departments – and this is only set to increase
The finance industry has not traditionally been the most innovative and has had a ‘legacy problem’ of being carried out through manual means. However, according to Medius’s latest Financial Professional Census report automation, including autonomous processing with AI and machine learning, provides finance professionals with more time to develop innovative work strategies. In fact, 45% of respondents echoed this statement and expect automation to ease the pressures on finance departments – making for a 2023 full of financial innovation.

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