The Risk Of Not Utilizing Accounts Payable Automation Software
COST TO PROCESS AN INVOICE
The automated processing of invoices often represents one of the essential tools for any finance director. vital component of this automation lies with the appropriate utilization of accounts payable software. As organizations today are reliant upon sophisticated technology for every aspect of operations, it istands to reason that not investing in the best accounts payable automation solution could present immense risks for any business.
For starters, failure to avail the latest technologies in this particular field may lead to increased financial costs. Specifically, it may lead to failure to capture available discounts from vendors that most businesses can enjoy by prompt payments. Moreover, manual techniques would also mean that the organizationstands to potentially miss invoice due dates. This can lead to increased fees due to what are known as ?late payment penalties?. In addition, organizational staff could be lost in the process of managing and processing invoices, resulting in further costs to inculcate the required skills. Equally, the period of latency between invoices being received to payment can further manifest itself in increased administrative expenditures, as expenses on manual processes to reconcile vendor accounts could raise.
Another serious risk derives from the potential of decreased levels of security and accuracy of the data. Sub-standard accounts payable automation solutions may lead to breaches of confidential company data, with the exposed information giving way to malicious attacks on the company in question. Unquestionably, such development would be nothing short of detrimental to the continuation of operations. Moreover, the lack of quality software can result in human errors, with the possibility of incorrect data being processed and stored. Such mistakes could be the harbinger of legal ramifications and the prospects of hefty fines from compensatory measures.
Crucially, the relatively low-cost nature of most software products for accounts payable automation belies their immense worth in the eyes of any C-Suite executive. Doing away with routine manual tasks via powerful technology would dispense adequate resources to allow for an enhanced degree of focus on core business activities. Moreover, integrating quality accounts payable automation solution can provide an organization with critical data that can be interrogated and exclusively used to categorize and measure trends in spending habits.
Ultimately, not taking advantage of the latest software availability would only serve to put any business at publically visible risk. By solidifying the change to automated processes of accounts payable, directors can safeguard their firm?s present position, while providing platform for growth in the future.
