Maximizing The Advantages Of Accounts Payable Automation
Business Invoice Processing Software
The use of accounts payable automation software offers numerous benefits when managing business finances, but failing to implement this technology carries significant risk. The repercussions of not utilizing accounts payable software can result in something as frustrating as lost productivity to something as catastrophic as regulatory violation.
business that neglect to adopt accounts payable Softwaresolutions run the risk of experiencing diminishing profits, lack of auditability, and even the potential loss of accreditation. Companies that forego automation solutions often find themselves mired in inefficiency and inaccuracy, wherein lost invoices and manual data entry cause delays and errors. This places the organization in precarious position of not effectively managing their financial processes, which can have severe consequences both short- and long-term.
Various figures can be used illustrate the tangible cost of not utilizing accounts payable automation software:
? Lost funds due to overpayment and inaccurate payments can add up to as much as 2-3% of companies total spend, per year.
? The cost of manual data entry averages $14.50 per invoice, amounting to hundreds of thousands of dollars on an annual basis.
? Time wasted paying invoices and reconciling records can cost business up to 3x the cost of Softwaresolutions.
? The lack of visibility into data and slow payments may result in missed discounts and/or opportunities to negotiate lower prices with suppliers.
Therefore, when evaluating ways to increase productivity, increase visibility, and reduce costs, automation should be viewed as required investment. By leveraging accounts payable automation solutions, companies can improve financial accuracy, speed up processes, boost their compliance, and assist in maintaining the highest levels of security.
Executives should look beyond basic cost savings and consider the true benefit isolutions can provide. Automation solutions can help an organization procure information in timely manner, integrate smoothly with backend systems, and provide meaningful insight into accounts payable operations. Furthermore, business can receive critically important audit trails, improved collaboration, and end-to-end process management. Moreover, automated solutions can facilitate real-time monitoring of employ spending and ensure all payments are appropriately documented and coded for auditing purposes.
In conclusion, the long-term costs of avoiding accounts payable automation software can have crippling effect on even the most successful of business. However, well planned implementation of automation solutions can help organizations significantly reduce errors, increase the speed of financial processes, and improve compliance. Executives should weigh the risks associated with opting out of automation and instead see it as an imperative measure to help streamline the accounts payable process.
