The Risks Of Not Utilizing Software For Invoice Verification
CHECKLIST FOR INVOICE VERIFICATION
Accounts payable automation software offers invaluable services to wide variety of companies. This software helps to streamline processes and reduce human error that comes with manual tasking. One such feature that is particularly useful for finance executives is the use of checklist for invoice verification. However, there is potential risk associated with not making use of such an automated system for this task.
The most obvious risk is inefficient use of time and resources. Without software, completing checklist for invoice verification and approving payment typically takes several hours and diverts resources from other projects. This can delay payments and put strain on companies balance sheet.
By contrast, software streamlines the entire process. Payments can be verified and approved in fraction of the time, and human resources can be more effectively used on more beneficial and complex endeavors. Automation also ensures accuracy by relieving human processing errors, which reduces the risk of using erroneous payment data.
Software automation also provides auditing convenience. With simple click of mouse, an executive can produce an accurate audit of payments, which allows better visibility of the companies financial sanctity. Without the software, it can become tedious and time-consuming to manage audits in an efficient and timely manner.
In addition to the inefficiencies of not using automation, not having the software also puts company at greater risk for potential noncompliance issues. Without the latest innovations and technology, companies may not stay up to date in accordance with ever-changing regulations, especially the evolving mandates from the Sarbanes-Oxley Act. Opening the company up to this risk is simply not viable option.
Lastly, manual invoice verification opens companies to the risk of potential frauds. Without the heightened security measures of automated systems, companies may fall victim to deceitful employees or other malicious agent threats. To combat this, software can be used to set limits on access and automate the verification process, adherence to set benchmarks, and remove the possibility of fraudulent behavior.
In conclusion, though manual checklists are an adequate form of invoice verification, they do carry with them the risk of inefficiency, inaccuracy, fraud, and noncompliance. Thanks to variety of accounts payable automation software options available on the market today, companies are able to significantly reduce such risks and enjoy the benefits of improved productivity, accuracy, and auditing capability.
