The Risk Of Invoice Processing Without Software
AVERAGE COST TO PROCESS AN INVOICE
For finance executives seeking to streamline accounts payable (AP) processes for their organization, the decision to invest in automated software can be daunting one. Nevertheless, the risks of failing to take such measures should be considered; without AP automation, inefficiencies, errors, and substantial costs can result.
To illustrate, consider the time and cost associated with processing invoices manually. Depending on the size of the organization, the accounts payable department may consist of anywhere from handful to dozens of staff members. These staff members must individually receive, audit, pay, and account for invoices. Documentation must be carefully completed and followed at each stage, increasing the likelihood of human error; discrepancies or duplicate payments can quickly mount, necessitating corrective actions. The complexity of this manual process, in other words, can drive costs upwards and reduce productivity.
By comparison, automated software dramatically reduces the amount of time and money needed to process invoices. This is done by streamlining data entry and utilizing optical character recognition (OCR) to appreciate handwritten documents, reducing the amount of human labour necessary and mitigating errors. In addition, the time needed to produce invoices for billing is drastically decreased; for instance, system may allow for direct input from vendors, dramatically reducing the labour required to prepare invoices.
These benefits should be considered in tandem with available resources. Organizations of all sizes may lack the budget or personnel needed to process invoices manually, which can further hamper productivity and erode potential savings. Moreover, failing to pursue automated AP solutions can mean missing out on other associated benefits such as improved accuracy, enhanced analytics, and improved forecasting.
The decision to implement AP automation software should not be taken lightly. In such cases, the risks of not taking measures to streamline the process should be considered. Doing so can ensure more effective system for optimizing finances and mitigating against the prohibitive costs associated with manually processing invoices.
