Risk Of Not Using Accounts Payable Automation Software
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Automating an accounts payable process with software can pose significant risk-reward challenge to finance executives. The perceived risk of implementing new software can be intimidating, but the potential cost savings and improved payment accuracy that software solutions provide far outweigh the potential costs. Without automated accounts payable, companies are likely to experience prolonged payment cycles, missed payment opportunities and inaccurate bookkeeping, all of which can be financially damaging.
Organizations that lack accounts payable software may not be able to track expenses, monitor cash flow, reconcile accounts, establish payment system, or efficiently expedite payment cycle times. Without solution in place, companies may also experience difficulties attaining real-time visibility into their finances and efficient management of their accounts.
Companies are also at risk of not being able to effectively manage the necessary payroll compliance processes and regulations. Software solutions are designed to incorporate the ever-evolving federal, state and local compliance laws for payroll, finance and human resources. Organizations that do not have automated accounts payable processes can risk compliance mismanagement and possible criminal prosecution in some instances.
Without accounts payable software, companies are likely to experience further losses due to inefficient working capital management when they do not have accurate expense data or can?t easily manage payment history details. Interdepartmental reconciliation time is also significantly increased without streamlined accounts payable process in place.
Risk mitigation is essential for any business; with todays competitive markets, it is imperative for companies to have the ability to track and monitor finances quickly and accurately. Automation solutions provide comprehensive suite of features designed to manage all accounts payable tasks including invoice processing and payment method selection. There are software packages available for businesses of all sizes, ranging from simple systems to specialized enterprise software applications that feature fully integrated financials as well as data integration with ERP/accounting systems and other back-end systems.
Software solutions also offer enhanced scalability and flexibility for standardizing accounts payable, which is particularly important for global businesses with multiple subsidiaries. Additionally, software solutions can enable businesses to easily set up fully automated exception-based processes, providing more sophisticated control over the accounts payable process and allowing for system-generated alerts and notifications.
In todays digital world, companies are increasingly relying on software to manage accounts payable and gain an edge over competitors in the market. Not implementing an automated accounts payable process can have serious financial, compliance and cash management implications for businesses that puts them at risk of losing customers and profits.
