The Risk Of Not Using Automated Accounts Receivable Automation Software
AUTOMATED ACCOUNTS RECEIVABLE AUTOMATION SOFTWARE
Automated accounts receivable automation software (ARAS) is becoming increasingly popular among finance executives in order to streamline the ?order-to-cash? process. However, organizations that do not make use of such software can be at risk of inefficiency and financial loss.
Using accounts receivable automation software helps create visibility in the invoice-to-cash process and can/ enable quicker payment processing and cash flow visibility. Without automation, tracking invoices and payments from one customer becomes an increasingly time-consuming activity, as does reconciliation of invoices among multiple customers. Furthermore, manual document processing is tedious and often results in processing delays, miscalculations, and further billing inaccuracies.
Apart from general lack of efficiency, not using ARAS software can prove more costly to an organization than initially anticipated. Without AI-enabled automatic invoice processing, manual document management will consume significant amount of finance personnel time, resulting in increased labor costs. In addition, without digital framework, companies may become more exposed to fraud. Furthermore, without integration to internal accounts receivable systems, manual invoice processing will increase the potential for human error. Hence, highly-automated accounts receivable systems are key in avoiding financial losses due to fraud, inaccurate invoice data, and billing mistakes.
ARAS solutions also provide scalability for the finance system within organizations, enabling companies to adapt to larger or newer customer bases. Tool integration capabilities for accounts receivable solutions like cloud-based software, robotic process automation, and machine learning allow companies to remain agile and support larger customer base with minimal difficulty.
Organizations have long recognized the importance of automation in accounts receivable system and the positive impact it can have within the finance department. Thus, for any organization to be able to handle higher numbers of invoices, payments, and customers in streamlined fashion, highly automated accounts receivable solutions are essential. Automated solutions streamline processes while creating robust defense against fraudulent activities. As such, failing to incorporate automation into the accounts receivable process can leave an organization vulnerable to risks and inefficiencies that can prove particularly costly.
