Risk Of Not Utilizing Accounts Payable Automation Software
BEST PRACTICE INVOICE PROCESSING
The introduction of accounts payable automation software has revolutionized the way businesses process their invoices, creating efficiency and accuracy in disparate departments throughout their financial system. However, for executives and other decision makers, there are real consequences to ignoring the advantages of incorporating best practice technologies such as accounts payable automation software into the organizational workflow.
From the critical lens of financial executive, the risk of not utilizing accounts payable automation (APA) software entails an increased chance of manual errors and delays in payment processing. Human errors cost small to medium-sized businesses an estimated 6% of their net revenue each year, and after accounting for both losses and operating costs, these errors can often be traced back to lack of systematization in financial departments.
In the past, reports of invoices and payment documents were handled without automation. This method, while effective in the short run, is often the cause of complications arising when documents are misplaced or inaccurately recorded. Additionally, it gives decision makers an incomplete picture of their financial standing, as month-end procedures are often hindrance on the visibility of data. This can have drastic effect on operational insights, creating lack of financial intelligence and, in worst cases, hidden losses and fraud.
With the introduction of accounts payable automation software, businesses are no longer subject to the risk of manual error. User-friendly interfaces allow for mass-invoice digitization and can set up certain criteria for the validation of documents. Software can handle the daunting task of coding and document organization that posed such problem for manual invoicing.
In addition to improving visibility and reliability, APA software can improve efficiency and speed. More complex financial departments often require complicated data entry and sorting processes, as well as duplicate invoice checking. Automating these processes with APA software not only reduces the risk of error but also saves time, allowing departments to focus their energies on more productive tasks.
Finally, accounts payable automation software presents executives and decision makers with an improved level of security, whether the risk comes from theft, loss, or the mishandling of documents. Built-in security protocols protect documents from unauthorized viewers, and off-site databases provide robust layer of information protection.
Even though financial executives can see the risk of not utilizing accounts payable automation software, the benefits it provides must be carefully weighed against its costs. However, for many organizations, the advantages of APA software far outweigh the monetary concerns it imposes. Automation reduces risk, improves accuracy, boosts efficiency, and offers secure environment for processing sensitive documents. In short, executives who ignore APA software may be opening their businesses to world of financial risks and losses.
