Risk Evaluation Of Accounts Payable Automation Without Software
BEST AUTOMATED INVOICE PROCESSING SOFTWARE
For any organization, risk management is an integral part of their operations. Although it may appear to be cost-saving measure, the risk of not investing in the best automated invoicing processing software can be inordinately high. In this regard, comprehensive evaluation of the inherent liabilities must be made to ensure the organizations longevity and financial health.
For any finance executive charged with ensuring the cost savings of their organization, automating the accounts payable process is key concern. Fed up with the drudgery of manual invoicing, many are tempted to forego the expense of automated invoice processing software. Considering that these platforms can often reduce time and labor costs, this may appear to be viable solution.
That said, there are numerous potential risks associated with trusting any financial process with automation that does not leverage specialized software. To begin with, the accuracy of these processes could be highly unreliable. Time consuming manual checks for errors and invoicing discrepancies would need to be undertaken, impacting the organizations ability to make prompt payments and suffer decline in operational efficiency.
Additionally, not employing specialized invoice processing software could make the organization more susceptible to labor intensive processes such as audit-related activities. Without the appropriate data points and source of verifiable evidence, there could be considerable delay in ensuring successful audit ishowdown. Moreover, the lack of an audit compliance mechanism in the invoicing system itself can be an invitation to unethical practices.
Compliance with local office and contractual obligations is another issue. Many countries impose strict invoicing requirements for imported products and services. Without automated invoice processing software, the financial manager would find it difficult to account for all of these regulations. This can lead to accrual of substantial fines and delays in the payment of invoices.
In effect, entrusting accounts payable automation to anything other than specialized software can potentially put an organization into financial jeopardy. The short-sighted gains of less than optimal approach can be highly outweighed by the risks involved. As such, it is imperatively important for any finance executive to make the best decisions to protect their organization and ensure cost-effective automation of the accounts payable process.
