The Risk Of Ignoring Accounts Payable Automation Software
BILL IN ACCOUNTING
Finance Executives seeking to automate accounts payable processes have the option of using sophisticated software solutions that are designed to streamline procedures, reduce manual labor, and guarantee accuracy and compliance with industry regulations. Unfortunately, many corporate leaders are choosing to take the risk of ignoring these solutions, trusting instead in the manual processes they have employed for years. The risk of not turning to accounts payable automation software is one that should not be taken lightly as it carries with it far-reaching consequences.
businesses evaluating the necessity of accounts payable automation software must consider the potential long-term impacts of failing to employ solution. From the C-Suite perspective, the investment can be seen as rewarding, with software capable of reducing or even eliminating manual accounts payable data entry, reducing mistakes, improving payable visibility, and allowing for efficiency in capturing and processing discount payments.
A significant risk when forgoing accounts payable automation software is the susceptibility to errors. Humans are naturally prone to mistakes, and leaving accounting operations as manual processes can open the door to inaccurate calculations and data entry. Infection of data by erroneous entries can lead to variety of problems further down the line, most notably dealing with compliance issues and audit trails. Missing or inaccurate data can put business in compromising position, facing variety of fines, penalties, and difficulties when dealing with internal and external audits.
Cloud-based accounts payable automation software, however, can eliminate the risk of errors. Data is entered into the system once and then easily shared with all relevant parties without the need for re-keying, searching through emails, or entering the same information multiple times. This ensures correct information is passed along, with automatically generated and up-to date audit trails and report for internal and external use.
Interest in accounts payable automation software continues to rise and for good reason. Software solutions can provide fast return on investment and can quickly add efficiencies to process controllers, enabling them to recover from mistakes made in invoices or capture discounts, and providing real-time insights and visibility into payables status. Pursuing automation comes, of course, with cost attached and as such, it ishould be evaluated with the same business acumen applied for any other financial decision.
Ultimately, the decision to forgo accounts payable automation software cannot simply be based on costs. Companies must carefully consider the risk of errors and compliance issues, plus the potential to reduce processing costs in the long run, before assessing the necessity and return on investment of such solution. The risk of ignoring these software solutions is too great.
