The Risks Of Not Utilizing Accounts Payable Automation Software
AUTOMATE BUSINESS PAYMENTS
Accounts payable automation software is valuable asset to any organization looking to streamline their processes and increase overall efficiency. The risks associated with failing to employ suitable automation system could have far-reaching implications that could drastically reduce companies potential for growth and profitability. To that end, it is extremely important for finance executives to evaluate the risks associated with not utilizing such tool.
Those who overlook the advantages of accounts payable automation software are at risk of experiencing number of undesirable outcomes. Chief among them is the very real possibility of experiencing costly financial leakage. Manual intervention with payments can cause significant errors to occur, resulting in significant degree of waste and errors in the payment processing cycle. This is particularly worsened if the organization is managing multi-currency and multi-country payments. Such inefficiencies can occur with as little as name or number that is listed incorrectly, leading to wide array of expenses that can have an outsized impact on the budget.
Manual intervention can also lead to compliance risks and heightened risk of violation of the companies internal policies and procedures. Compliance violations can range from procedural oversights to larger scale risks, such as having to pay costly fines and penalties due to incorrect information being submitted on various documents like invoices, checks, and electronic funds transfers. Manual payment processing can even cause organizations to become subject to audit due to errors and inefficiencies. These repercussions could be particularly deleterious to an organizations relationship with its suppliers.
Lastly, the opportunity cost associated with manual payment processing should also be taken into account. Processing payments manually can be extremely labor-intensive, taking up considerable amount of the accounting staff?s time. As result, those members of staff are unable to perform other roles and fulfil other duties, impacting negatively on companies ability to properly allocate their resources. Moreover, manual processing can lead to companies trying to perform work with outdated it isystems, which then necessitates the need to purchase costly upgrades.
Overall, manually processing accounts payable runs contrary to the fundamental premises of sound financial management and can have far-reaching repercussions if ignored. Consequently, it is prudent for finance executives to consider the risks associated with not employing accounts payable automation software, as the ultimate cost of such could be far greater.
