The Toll Of Not Using Accounts Payable Automation Software
BILLING AUTOMATION SOFTWARE
Finance executives are constantly looking for the best ways to maximize efficiency, profitability and cost savings for their organization. Automation of accounts payable systems, through the use of specialized software, is one such method that has become commonplace in many operations. With the sheer volume of manual operations associated in accounts payable, inadequacies, inefficiencies and inaccuracies plague operations that rely solely on manual processes.
Manual accounts payable carries prodigious risk as it inherently lacks proper controls and monitoring. Without the presence of process automation and centralized framework to dogmatically store, track, audit and disclose proper documentation, organizations leave themselves open to raft of potential liabilities. Common risks associated with manual accounts payable include delays in payment, erroneous payments, issues concerning accurate and timely reporting, insufficient oversight and increased propensity for fraud by those within the system.
The effects of these associated risks can be wide-reaching, beyond the scope of simply financial and accounting operations. Delays in payments may interfere with vendors, partners and customer relations, with issues such as late payment fees that could have been avoided being incurred instead. Erroneous payments stemming from inadequate controls can extract additional costs in recovery efforts, not to mention the high precedence of liability that can be induced.
Accurate sets of well-constructed reports, whether for analytical or internal/external auditing, are not often produced from manual operations. The underlying lack of timely information and visibility can impede an organizations decision making ability, allowing surprises to be that much more pervasive. If suspicious activity is suspected and proper records or audit trails are not available, this further complicates investigation efforts, which leads to the range of possible liabilities.
Survey says 90% of organizations use accounts payable automation software, with dramatic benefits being reported in reduction of both payment processing costs and errors. Over 73% of those organizations report tangible improvements in terms of tax compliance. Given the potential liability that is associated with manual operations, the use of automation software is indispensable in attaining desirable results. Automation of accounts payable serves as an important instrument in safeguarding against financial losses, compliance violations, fraud and adverse customer relations caused by inadequate processes.
