A Costly Risk Of Not Utilizing E-Invoicing Cloud Solution
Auto Payment Through E-Invoicing Cloud Solution
Organizations that fail to strategize risk management and implement timely technological systems leave themselves exposed to financial discrepancies and clear operational burden. The necessary tools and processes are thus essential in establishing controls over the accounts payable payment cycle and avoiding unwittingly incurring severe costs and significant risks. As such, an e-invoicing cloud solution is integral to the accounts payable automation software.
In exploring the potential risks, the pivotal task for the C-Suite is to analyze the cost implications of not utilizing an e-invoicing cloud solution within the enterprise’s accounts payable system. To assess this, it is important to scrutinize the efficiency drops and the various payments that inevitably fail should the software be omitted.
This drops in efficiency have far-reaching consequences. Firstly, the increased manual procedures to reconcile the financial accompanying paperwork leads to additional personnel costs in the long run. Secondly, there is substantially higher risk of human error and thus, sharp increase in late payment fees as well as credit card surcharges from vendors. Thirdly, there may be administrative costs associated with accessing paper files, which come into effect when there needs to be compliance with audits for tax reporting and legal requirements.
The escalated complexity and vulnerability to cyber threats if traditional invoice processing is retained further add to the liability of these enterprises. The tremendous costs in terms of potential legal and compliance fees that accompany cyberattack creates highly precarious situation.
Depriving the accounts payable payment cycle of an automated system can also risk missing out on the hidden insights that are tucked away in the invoice data. There may be staff inefficiency and lack of continuity that can only be identified and addressed by automated systems with the requisite cognitive technology to track and transcribe the data into actionable insights.
By no means is this article comprehensive account of the detriments of foregoing an e-invoicing cloud solution, rather it is intended to emphasize the tangible risk that an enterprise could face in the event of foregoing such technological advancements and thereby failing to keep up with the modern world of automation. With that said, an investment in the accounts payable system is undoubtedly far less of an expense than dealing with the aftermath of disgruntled partners or the cost of remediating cyberattack.
