The Dangers Of Neglecting Accounts Payable Automation Software
AUTOMATED PAYMENT SOFTWARE
Accounts payable automation has become increasingly important for businesses to remain competitive in the market. Yet, despite the vast advantages and cost savings to be had from automation, many companies still neglect the concept of automated payment processing. Not only does failing to implement automation software leave organizations at competitive disadvantage, but also at great financial risk, as lack of proper controls can lead to money loss, decreased efficiency, and compliance issues.
In world where businesses rely on manual processes and lack of in-depth control, frauds and errors are far more commonplace. Companies without automated payment processes not only lose the ability to track payments or monitor the safety of the data, but also neglect to take advantage of favorable payment options, such as buying discounts and early payment perks, which can lead to substantial savings in the long run.
By not taking advantage of automated payment processing, businesses miss out on the ability to streamline their operations. Companies manually processing payments are predisposed to errors, delays, and inefficiency, thus leading to higher rate of lost invoices, incorrect payments, and incorrect returned items. This can often translate into significant loss of funds, as well as possible non-compliance due to data leakage that causes problems with risk management.
Moreover, businesses that have opted for manual payment processing have to provide additional resources for the employees executing the tasks. This means that the Accounts Payable (AP) department may be unable to work on more time-sensitive tasks, such as negotiation for discounts with suppliers. Additionally, manual payment processes require more time to process, as well as more headcount to do the job. All these issues are easily solved by utilizing an automated processes software.
In conclusion, while it is relatively easy to see the benefits of AP automation software, the risks of not utilizing the software can be much harder to gauge without in depth analysis. Automation can remove number of risks associated with manual payment processes, such as frauds, lost invoices, incorrect payments, data leakage, inefficient processes, and inadequate budgeting. Automation can also help streamline operations and provide ample opportunities for cost savings. As such, companies must understand the risks associated with manual payment processing, and benefits they can gain by utilizing an automated payment software.
