The term “straight-through processing” (STP) is thrown around a lot in the business world, but what does it actually mean? STP is an automated process that happens entirely electronically, with no need for manual intervention. This can be applied to a number of areas, but it’s particularly useful in accounting. In the coming years, we’re likely to see even more automation in accounting, as companies look for ways to improve efficiency and cut costs. So what does this mean for accounting teams? Here’s a quick overview of STP and its potential impact on the industry in 2023.
STP is a highly efficient method of automating business processes. It involves creating digital pathways to eliminate manual labor, with the transfer of information occurring between systems electronically. STP improves productivity and reduces errors, making it an attractive prospect for the accounting industry. By robotizing the tedious and time-consuming tasks associated with heretofore manual bookkeeping processes, accountants can optimize their output and minimize effort in mundane tasks that don’t require specialized judgement. With streamlined data streams between accounting software, banks and other financial institutions, STP moves us one step closer to unifying the business platform in service of driving innovation.
By removing the need for manual intervention, STP dramatically speeds up and automates tedious processes, leading to a more efficient overall workflow and freeing up accounting staff to focus on more complex tasks. The implementation of STP not only makes it easier for companies to process transactions faster and more accurately – it also adds an element of reliability as there are fewer chances for human error. Accounting teams will no longer have to spend valuable hours manually inputting data or chasing after errors; instead they can focus on tackling bigger business challenges. STP can be seen as a catalyst that’s optimizing the efficiency of modern accounting workflows – a true boon for those needing to stay ahead in the ever-changing landscape of business operations.
Accounting teams can prepare themselves for the transition to Straight-Through Processing by ensuring they have a well-documented and efficient workflow process. Analyzing current processes and verifying data accuracy beforehand can set up a smooth transition that saves time and money in the long run. With automated accounting solutions emerging, now is an ideal time for accounting teams to take advantage of the opportunities provided by STP without compromising integrity or accuracy. Making plans to continually audit their automation efforts can ensure that STP remains an effective part of operations going forward.
Automation is the way of the future, and accounting teams should consider taking advantage of it. AR automation and email productivity tools can help accounting professionals eliminate extra steps and make their processes more efficient. By exploring new methods of technology-enabled workflow management, like AR automation, they can take the right steps towards maximum efficiency with Straight-Through Processing (STP). Companies cannot afford to be blindsided by manual intervention taking away from the ROI that STP provides; these tools can help them jump ahead in digital transformation with solidified process changes. Ultimately, if done thoughtfully and strategically, Straight-through Processing could offer a powerful way to optimize efficiency, accuracy, workflow and accuracy in your business’s financial operations.
Lockstep Receivables could be your first step to full STP success. Want to learn more? Schedule a demo, today!