Risky Business: The Consequences Of Not Using Accounts Payable Automation Software
AUTOMATE ACCOUNTS
In the rapidly changing and increasingly digital business landscape, accounts payable automation software is becoming more and more essential for the efficient management of all financial processes, tasks and procedures. Nevertheless, some organizations still try to operate with manual accounts payable systems, in which all the information is entered manually, by hand. Not only is manual data entry mundane and time-consuming process, but it is also an error-prone one, which increases the chance of financial mistakes and erroneous transactions.
When manual processes are utilized, mundane tasks such as invoice entry, reporting and manual reconciliation requirements become significant burden for companies who lack the personnel, infrastructure and capabilities to efficiently manage these tasks. Manual accounts payable processes also require significant amount of time for set of duties that can be executed more efficiently through an automated accounts payable system. Moreover, the lack of internal control in manual system can lead to fraudulent activities within the organization. In this age of globalization, survival of the fittest is no longer just an ecological concept but also business principle. Staying ahead of the competition can be achieved and maintained through developing fully automated accounts payable system.
Companies and organizations need to become aware of the various risks and challenges associated with manual accounts payable. Inefficient accounts payable processes can be very costly in terms of time and resources, with inaccurate and slow processes resulting in difficulty in meeting financial responsibilities such as payments and/or suppliers and/or vendors. Moreover, computers are also more reliable than humans; manual accounts payable can easily become bogged down by human error, especially in the filing and sorting procedures needed by manual systems.
Balancing the opportunity costs of technologies such as automated accounts payable automation software and the associated risks is the challenge which CFOs, finance directors and all other corporate officers responsible for accounts payable must deal with. Automation of accounts payable can and will provide direct benefits in terms of cost, accuracy and efficiency and must be considered in order to remain profitable. Automated accounts payable, or implementing any comprehensive software solution can be expensive and time consuming, but it also introduces tangible benefits such as reduced overhead costs, improved data accuracy and significantly reduced human error rates.
The ultimate purpose of any finance executive is to maximize return on investments. Careful evaluation of available options will give the decision makers the opportunity to assess the value of the automated accounts payable software. Having an automated system might seem an upfront cost, but its implementation will pay for itself for very long time. Automated accounts payable systems can provide an efficient track and trace system which logs each payment and supplier dispute and provide relevant information in more timely manner. Accounts payable automation results in increased accuracy, improved data security, faster payment authentication and significantly enhanced financial visibility. Moreover, automated accounts payable systems also ensure data integrity, thereby providing better continuity during times of transition and personnel changes.
Accounts payable automation software such as electronic data interchange (EDI) promises an overall streamlined and cost efficient solution to the problems introduced by manual procures. Automating accounts payable is smart and organized way to manage cash flow, maximize ROI and make better decisions in an organized and systematic way, thus becoming an ideal solution to the long-term management of financial processes.
Organizations need to become aware of the opportunity costs of not utilizing automated accounts payable systems. The costs associated with manual accounts payable procedures not only include the time and resources spent on mundane tasks and activities, but also the associated risks of human error and insecure financial data. To maintain competitive edge in todays turbulent economy, organizations must invest in effective automated accounts payable systems, and the associated benefits of accurate data and improved financial visibility will surely enable them to identify and capitalize on proficiencies far beyond the costs of implementing such system.
