The Pivotal Risk Of Not Using Automated Accounts Payable Software
COMPLETE AUTOMATED ACCOUNTS PAYABLE SYSTEM
No doubt the complexity and tediousness of managing the Accounts Payable (AP) process make it prime candidate for the automation treatment. It can be nightmare if an organization relies on its manual book-keeping solutions for the AP process. Executives faced with decision-making to utilize automated software solutions for Accounts Payable must consider the associated risks of traditional systems.
Foremost, the manual approach to managing AP can cause delays in payments, thereby potentially leading to time-value of money gap. As unstructured data is added or entered manually, it can prompt errors or disparities between data sets, making it difficult to ascertain accurate metrics of the Accounts Payable process. There can also be misappropriation of funds due to unstructured management of the accounts database, potentially putting the organization in precarious legal and financial position.
The robustness of automated software solutions offer foolproof bulwark to address the aforementioned risks. By the time they are ready to use the Accounts Payable database, employees have already digitized the data and ensure it is accurate to the last detail. Predefined qualifiers within these solutions manage the database so that the risk associated with human error is minimized. Moreover, automated software solutions also offer more detailed metrics and analytics on Approval Workflows and track Employee Response Times for different operations, allowing for better status monitoring and containment of unacceptable outliers.
The benefits of comprehensive automated Accounts Payable solutions go far beyond the financial sphere. Streamlining of the AP process can lead to improved vendor relationships, thus allowing for greater consensus building in robust negotiation scenarios. Moreover, employee morale is likely to boost as their workload concerning the AP process shrinks. Since their energies can be spent optimally in process innovation, the full extent of their professional competence is tapped and provides better Return on Investment in either utilization of resources or Technology.
In conclusion, the paramount risk associated with not utilizing an automated Accounts Payable software is dire. Therefore, executives can ill-afford to dismiss the potential of these solutions. By automating, they can ensure that all the intricacies of the AP process, such as completing the transaction reconciliation, payments, tax files, etc., are seamlessly taken care of, allowing all their energies to be channeled into more productive pursuits.
