The Risks Of Going Rogue With Accounts Payables Automation
B2B CREDIT AUTOMATIONS SOLUTION
Organisations seeking to optimise their accounts payable process are increasingly turning to automation solutions to streamline the process and reduce costs. Whilst automation software offers significant advantages over manual processing, there are significant financial, operational and compliance implications for forgoing these solutions and continuing with manual processing methods.
For many organisations, the financial effects of taking DIY approach to automation are easily seen. Employing staff to manually enter and check data can lead to significant costs, with employee time and resources wasted when compared to the automated equivalent. It is not uncommon for organisations to rely too heavily on manual processing, instead of considering the larger picture and the associated costs. In addition, continuing to use old and obsolete manual processes may lead to delays in payments and can cause an organisation to miss out on lucrative early payment discounts.
Beyond the financial implications of shunning software solutions is the operational risks of manual processing. It could be argued that investing in automation solutions can be fundamental in terms of achieving operational agility and efficiency, thus enhancing an organisation’s overall competitiveness. Furthermore, obtaining data can be unreliable and delayed when relying purely on manual processes and the lack of real-time data could be detrimental to decision-making. What’s more, manual processes can lead to decrease in the quality of output when compared to software solutions.
When it comes to compliance and security, shunning software solutions can be costly decision. Poor cash flow management is often due to human error and manual processing can be inefficient and can cause for uncontrolled discrepancies. Continuous manual processing can also increase the risk of data theft and fraud as non-automated methods are generally not secure and are closely reliant upon manual operations. Automation solutions can provide organisations with real-time visibility and therefore ensure that cash flow is closely monitored.
In summary, whilst there are potential cost-saving benefits associated with manual processing, the associated risks far outweigh any potential financial gain. Opting for an automated solution is key to cutting costs, increasing security and streamlining the accounts payable process. Automation software can provide low cost, efficient and secure method for organisations to manage their cash flow and gain real-time visibility into their accounts. In light of the advantages they provide, software solutions are an increasingly attractive proposition for companies looking to optimise their accounts payable process.
