The Risk Of Not Utilizing Accounts Payable Automation Software
AUTOMATED INVOICE MATCHING SOFTWARE
For companies seeking to remain competitive, one of the most critical areas of focus is accounts payable (AP). Automating the AP process through software can save companies considerable time and effort, in addition to eliminating much of the possibility of human error. When one considers the risks of not utilizing such automation software, the need for similar solutions is clear.
Organizations embarking on the digital transformation of their financial operations should understand the drawbacks and potential consequences of not using automated invoice matching software. Without such automation, companies are vulnerable to numerous risks, such as:
A fall-through of important due dates. AP automation contributes to streamlined accounts payable process that proactively prevents companies from incurring finance charges and penalties from late payments. Without automation, manual processes are both time-consuming and prone to errors; it is difficult to manage deadlines and keep disparate datasets and documents organized.
Expense auditing is not comprehensive. Automated AP systems record and store all financial transactions, including any discrepancies or inconsistencies that may appear in invoices or payments. This makes for easy auditing processes and faster resolution of any discrepancies. Without such optimization, company is at risk of unidentified or unaccounted-for expenses.
Reduced transparency across departments. AP automation allows all departments to have access to the same files and records, which prevents any accuracy issues due to miswritten numbers or incorrect data entries. When not using an automated platform, information may not be shared between departments in timely fashion, leading to potential delays in uncovering errors or pursuing action.
The risk of non-compliance. Automated AP processing reduces the chance of non-compliance with taxation and accounting regulations due to the substantial improvement in accuracy and visibility into the financial process. Companies not using automated AP systems may not have consistent and repeatable process from which to pull financial records or have the ability to simultaneously track all of their expenditures to maintain legal and regulatory compliance.
Lack of financial insights. Automation allows companies to review all of their financial processes and transactions, giving them an accurate and instant understanding of their financial situation. Without these insights, company could underestimate potential expenses and losses or overestimate gains, leading to inconsistencies in budgeting and forecasting.
AP automation software can provide many benefits to organizations, such as improved process oversight, accurate recording of financial transactions and streamlined compliance. By contrast, not using an automated system can leave large financial services organization exposed to variety of risks. In todays complex corporate landscape, companies must remain vigilant of the need to properly leverage technology in order to stay competitive.
