The High Cost Of Duplicate Payments: A C-Suite Perspective
DUPLICATE PAYMENT
The failure to use automatic accounts payable automation software can lead to costly duplicate payments, risk that any responsible financial executive would be wise to consider. Without the protection of dedicated software, accounts payable teams become vulnerable to errors, miscalculations, and acts of fraud.
The direct costs of duplicate payments are both tangible and intangible, but in either case can reach considerable sums. Obviously, the more significant financial losses come from the actual amount of duplicate payments themselves. poorly organized accounts payable department is more likely to make duplicate payments toward exactly the same vendor, potentially through multiple channels. This results in waste of capital and immediate monetary losses. Additionally, the associated effort to track down the source of the duplicate payment and correct the error turns into time-consuming task, resulting in an inefficient use of resources.
The reputational risks of not using an accounts payable automation software should not be underestimated. Companies that suffer from an rampant presence of duplicate payments invite more scrutiny from financial auditors and the media, leading to more distrust in the otherwise positive image such company might have held. Moreover, former companys? employees may come to regret their decision of not using such software, as the resulting duplicate payments put their own job at higher risk and sabotage their professional development.
Accounts payable teams must protect themselves against these risks through the implementation of comprehensive accounts payable automation software. Such software would integrate and protect payment data, store historical records, monitor changes in payment data directly, and cross-reference all entries against third-party source. Highly advanced softwares even come with customisable settings that allow users to set up parameters for duplicate payments and flag possible issues.
Relying on the experience, accuracy and security of an automated accounts payable system can be the key difference between an accounts payable team missing crucial error or thwarting an act of fraud. Without such system, C-suite executives risk incurring considerable losses in terms of direct payments, time, and reputation.
