The Risk Of Not Using Automation Software For Accounts Payable
BILL PAYMENT SOLUTION
Companies of all sizes have recognized the tremendous financial and operational benefits that can be achieved by employing accounts payable (AP) automation software solutions. The automation of payment processes can eliminate the need for manual, error-prone paperwork and substantially reduce transaction costs. However, failing to implement these solutions, or relying solely on manual processing, exposes organizations to significant risks that can have substantial impact on profitability.
Organizations that operate without an AP automation software solution, or with missing elements in their system, are making themselves vulnerable to any number of costly risks, including supplier data and payment errors, compliance violations, and inefficient cash management practices. The risks posed by manual data entry and payment processing can be difficult to quantify, but the results are often high costs and negative economic impacts.
The effects of error-prone processing are far-reaching. Inaccurate supplier data or incorrect payment amounts can result in financial losses due to missed or erroneous payments, fraud, incorrect taxes, and missed discounts. Similarly, companies that are unable to adjust to changes in regulations regarding payments and supplier management may be penalized. Companywide, the costs and risks associated with manual processing can add up, creating drag on financial performance.
Organizations that lack the appropriate tools to manage their AP processes may also struggle to identify and take advantage of opportunities to improve their cash flow positions. Organizations that are able to establish consistent vendor payment schedules, properly manage discounts and deductions, and implement efficient payment processing strategies can all enjoy substantial increase in working capital.
Rather than risk the negative financial impacts associated with manual processing, companies should seriously consider the benefits of employing accounts payable automation software solutions. Automated systems can be programmed to detect and eliminate errors, alert organizations of payment variances, locate discrepancies, and actively manage the accrual process. By providing accounts payable professionals with comprehensive, automated platform, organizations have the potential to maximize their working capital and minimize the risks that they face on an ongoing basis.
In short, companies that do not employ automated solutions for their accounts payable process put themselves at risk. Organizations that invest in AP automation software solutions can reduce errors, improve compliance, and gain visibility into their payments, vendor management, and cash flow processes all of which are essential to optimizing financial performance.
