Risk Of Not Implementing An Accounts Payables Automation Solution
CALCULATING ACCOUNTS PAYABLE
As finance executive, it is vital to consider the risks associated with not implementing an accounts payable (AP) automation solution. Allowing the AP process to remain manual can have financial repercussions beyond the cost savings associated with automation.
When businesses accounts payables strategy is paper-based and manual, tedious, paper-heavy tasks arise, leaving staff with little time for more critical aspects of their job. These tasks include sorting and matching up invoices, data entry, and manual filing. It is also more likely that expenses can be accidentally duplicated or not credited to the correct vendor when manual methods are used, resulting in severe financial losses.
Manual accounts payables processes require greater staff resources, resulting in high labor costs. Automation offers the opportunity to reduce overhead costs by replacing labor-intensive tasks with more efficient, automated solutions. Not only will costs be reduced, but AP staff will become freed up to focus on other more critical activities that add value to the organization.
The lack of formal accounts payables process increases the risk of fraud or errors. Utilizing paper-based invoicing methods allows for unapproved invoices to enter the payment process and increase the risk of fraud. Automation provides greater control over incoming invoices and ensures accuracy by scanning and mirroring any documents that require manual entry or verification.
businesses that have not implemented an automated accounts payables process can also leave their finances vulnerable to cybercrime and malicious activity. Automation effectively reduces that risk because data is stored securely and monitored regularly. Using the software also allows invoices to be stored digitally, reducing the possibility of informational theft.
Due to the risks posed to businesses finances and data, it is essential to consider automation when it comes to accounts payables. Automation simplifies the AP process and takes away the tedious tasks associated with manual handling, allowing operations to progress more efficiently and securely. Undoubtedly, the financial and data security benefits render automation beneficial to any finance executive.
