The Costly Risk Of Ignoring Digital Invoice Processing Software
DIGITAL INVOICE PROCESSING
For any finance executive committed to reducing overhead costs, implementing an accounts payable automation software is logical next step. Not only does such software simplify and streamline arduous manual processes, but it also ensures stricter compliance and fraud prevention protocols. Unfortunately, too many companies focus exclusively on the upfront costs associated with such solutions and fail to consider the far greater costs–and risks–associated with forgoing them.
Naturally, any financial executive seeks to minimize expenditures in order to achieve the greatest return on investment. This has led many to weigh the expenses of utilizing digital invoice processing software against the costs associated with manual processes. Such analysis, however, tends to overlook the long-term labor and litigation costs which can arise when employers, vendors, customers and tax authorities all have different expectations and can’t be satisfied in timely manner due to an overly onerous manual review process.
Take the example of credit notes dispute. It is not unheard of for disputes to endure for months and even years if companies are unable to provide accurate, up-to-date records quickly. Moreover, manual processes also contribute to numerous other oversights that can lead to long-term penalties, such as late payments and more costly rework.
This issue is further compounded by the ever-increasing level of human costs associated with manual data input for accounts payable operations. It has become increasingly difficult for companies to meter out the exact amount of time spent by staff dealing with the manual processing of invoices. Such labor costs inevitably increase companies overhead in addition to suppressing other potential areas of growth.
A significant concern with manual data input is also the issue of fraud prevention. Accounts payable software offers much higher levels of compliance and fraud protection by requiring that all invoices are digitally validated against purchase orders and against the client’s own budget limitations before they are accepted. As well, the software can detect duplicate invoice payouts, process invoices with exceptions, and help with vendor performance management.
All of these factors combine to make digital invoice processing software crucial towards optimization of companies accounts payable cycle. In the long-term, implementing such an effective tool will ultimately save companies great deal of money, in addition to granting peace of mind that data is being handled securely.
The decision to invest in accounts payable automation software cannot be overstated. While finding financially-advantageous solution is challenging, the risks associated with ignoring this technology far outweigh the long-term costs of implementation. commitment to digital invoice processing software is essential for ensuring the short- and long-term viability of any modern company.
