Mitigating Risk Through Automated Accounts Payable
Challenges In Invoice Processing
There are inherent risks in using manual processing for accounts payable within an organization; risks that can be avoided by employing digital technologies and automated solutions. Without the implementation of an automated accounts payable system, companies financial processes become inefficient. Furthermore, failure to process and submit timely payments to suppliers or creditors, could result in lost revenue or fines due to missed deadlines.
Finance executives invest significant effort in seeking to optimize financial operations, and accounts payable automation software can provide substantial return on investment. By reducing manual processes, changing to digital platform has the potential to significantly reduce overhead costs. Additionally, automation offers the potential to free up staff so they may concentrate on providing additional value-adding services.
The dangers of manual processing do not stop at financial penalties, or reduced staff efficiency there are myriad of other risks associated with the continued use of manual approaches. Performance errors are distinct possibility, as manual process tend to be more prone to illegal activities. While the full errors may not be apparent, there remains the potential for overpayments which may not be easily discovered due to processes being conducted manually. In addition, visibility and control of the process are limited, increasing the chance of fraud.
Automated accounts payable processes offers degree of security that is impossible with manual systems. As digital transformation eliminates paper forms, which can be difficult to control, the corresponding digital systems utilize processes that are secured and authenticated, mitigating the risk of fraud.
Furthermore, accounts payable automation allows for precise tracking of payments and total control over cash flow and invoices. This level of monitoring and control is impossible to replicate with manual processing. Automated systems provide timely notifications, comparison of vendor terms, visible payment methods, account reconciliation, and automated invoice coding, all leading to improved efficiency.
Automated accounts payable is, therefore, the more secure option, whilst also increasing financial accuracy. Finance departments can take advantage of software-enabled solution that simplifies complex processes, reduces the requirement for staff and delivers better return on investment.
