Risk Of Not Using Invoice Processing Software
AUTOMATING INVOICE PROCESSING
The cost of not automating invoice processing is significant. To begin with, manual processing of invoices is an inefficient use of labor resources, as it isignificantly increases the investment in labor. Moreover, manual processing runs the risk of increasing the cost of goods or services due to errors associated with manual data entry. Additionally, the cost to rectify errors can be substantial due to the manual completion of adjustments and associated fees.
Errors Manual errors originating from input inaccuracies can derail the budgeting process. This can increase the lead time for invoice processes, thus limiting the timeliness of accounts payable and the cash management of the company. Additionally, the manual input of data is more susceptible to errors during atypical workloads, such as during month-end.
Compliance To ensure compliance with regulations, companies must invest in oversight measures. Without automating the process, companies risk not meeting deadlines, failing to adhere to guidelines, and an inability to manage external payments and vendor delays.
CompetitivenessThe common refrain is that companies must “do more with less” in order to remain competitive. This is particularly true when it comes to processing invoices, as manual efforts cannot realize the same qualitative outcomes and scalability that automation can. This is because manual processing requires more time, effort, and money to realize savings and growth.
In conclusion, the risks associated with not using invoice processing software are clear. From cost and error prevention perspective, manual completion of the invoice processing process is an inefficient investment of resources, likely to result in error-driven cost and compliance challenges. Additionally, there are concerns related to competitiveness, and this issue is exacerbated with manual processing. By accounting for the potential risks, companies can make informed decisions when selecting automated invoice processing software.
