Many of us are looking forward to leaving 2020 behind. Yet, most definitely, a lot of what we’re seeing right now will spill over to the new year. At least as far as the economy is concerned.
Here are five trends that I expect to see appear or persist in the accounts receivable industry in the new year.
1. More automation
Faster billing ensures faster payout. The more automated accounts receivable you have, the sooner you get billed. Time is often necessary, but in a declining economy, it is highly crucial that you get your money as soon as possible. As more accounts payable divisions move to merge their accounts payable and accounting software, you can see a smoother system all around.
2. Data analysis would increase
The accounts receivable Big data is now getting bigger. Machine learning and data analytics are used to produce information that helps to provide consumers with quicker, cheaper and more customized billing. There are now more efficient software that can capture and interpret data to identify payment behavior patterns. This will help you identify when anything suspicious happens to the customer and act quickly to collect your payment to prevent potential issues.
3. Cybersecurity is becoming ever more important
From elections to consumer records, cyber risks are huge. As our world of work grows more interactive and remote, cybercrime will also rise. If the accounts receivable workers work from home at all, make sure they only work on a protected network with excellent passwords from approved devices.
Now is the time to start bringing in an expert to ensure that all knowledge about you and your client is safe and secure. We’re seeing more claims that email addresses get compromised, resulting in money being transferred to the hacker’s bank account. This could be catastrophic to a company that was still in financial trouble.
4. Subscriptions and auto renewals are also going to be big (and complicated)
Auto renewals and subscriptions are a perfect way to ensure you have a stable cash flow. More and more states, however, are adding self-renewal regulations to protect consumers. This pattern is going to grow. If you are selling SaaS or some other auto-renewal items, make sure that you are up to date with the existing and pending auto-renewal regulations.
5. More people are going to hire collection companies
In tough economic times, we typically see a rise in sales. That’s because as collecting gets more difficult, it makes more sense to let the experts do the job. Letting a collection agent negotiate dispute settlement and collect challenging disputes ensures that you and your team can concentrate on enhancing procedures and supporting your paid customers.
We are both looking forward to a new year. Keeping up with the new market and payment patterns will help make your 2021 as good as possible. If we can help you in some way, please let us know.