The Risks Involved In Not Utilizing Software For Einvoicing
E INVOICING
businesses of all sizes rely on timely and reliable accounts payable process; however, manual accounts payable operations are rife with inefficiencies that can result in unacceptably long payment lead times and invoice discrepancies. Making the move to an automated accounts payable software can eliminate process redundancy and provide Finance Executives with the assurance that invoices will be securely managed, intact, and timelines respected.
Notwit istanding, when organizations opt not to make use of eInvoicing software, several risks arise. Firstly, when data is manually input, errors during the invoicing process are more likely due to human error or any accidental oversights. Delays in invoice processing also become more likely when people are solely responsible for performing the task, as single points of failure arise whenever one person is out of the office. These discrepancies can create issues with suppliers, making it more difficult to negotiate payment terms and discounts, in addition to creating queries concerning quantity and prices.
The lack of software also adds the complexities of audit trails, records management, and security. Certain compliance regulations, including those put forth by the Sarbanes-Oxley Act, are difficult to adhere to when invoices are managed manually. Even tasks that may seem mundane, such as adhering to retainment policies, archives labeling, document directory maintenance, and inquiries, are easier to address when accounts payable operations are handled through automated software.
Another problem posed to organizations that do not embrace technology is the associated lack of visibility and transparency of invoice processing. Without the access to real-time data, Finance Executives will not be able to track the progression of invoices and monitor compliance. This can also make it difficult for C-Suite professionals to scale the accounts payable process and ensure that it is optimized for growth. Software offers scalability available that manual invoicing does not; organizations are able to self-configure the software to satisfy their needs, regardless of their size.
Most important, one of the greatest dangers of not utilizing eInvoicing software is the lack of accessibility. Financial data is lost when it cannot be accessed easily, and software solutions offer an inherent advantage when it comes to searching and pulling archived invoice data. The ability to monitor payment history, discounts offered, discounts taken, invoice receipt and approval status, and cash disbursement processes is only possible if financial data is readily accessible. Finally, records can be lost, misplaced and accidently deleted, further compounding the issue of accessibility.
In conclusion, the risks associated with not utilizing eInvoicing software extend far beyond invoice discrepancies and delays; decline in security, compliance, visibility, scalability, and accessibility is an exceedingly formidable prospect for Financial Executives looking after accounts payable. Automated software solutions are tailored to address the inefficiencies of manual processes and provide organizations with an assurance that their invoices are managed securely, intact, and in accordance with timelines.
Therefore, it pays for C-Suite Executives to seriously consider the advantages of implementing an automated accounts payable software the security, compliance, visibility, scalability, and accessibility to ensure the risks associated with not utilizing such technology are avoided.
