Uncertainty In Accounts Payable: The Risks Of Running Without Automation Software
AUTOMATIC INVOICE ENTRY
When deciding to purchase accounts payable automation software, it is important to consider the risks of operating without secure, robust solution in place. By taking measurable steps to ensure that your organization is protected and operating at maximum efficiency requires thorough evaluation of the advantages and possible drawbacks of software solution.
To start, consider the cost of investing in modern software solution for accounts payable automation. While the expenses for setup and fees may appear substantial, the cost-savings that an automated system will yield over the long-term can be quite substantial. For example, eliminating the need to manually enter invoices translates to time saved, reduction in labor costs and fewer errors in the data entry process. Moreover, the ability to easily identify erroneous transactions and the improved controls will enable better visibility over accounts payable processes and data?allowing decision makers to identify which suppliers need to be monitored more closely or renegotiate better terms.
Not only can automation of accounts payable processes save money, but there are also risks associated with its exclusion. Companies without such system may find themselves vulnerable to costly errors and fraudulent activities. Without the proper controls in place, it becomes harder to detect errors and flag abnormalities in financial data. This can have disastrous effects on an organizations bottom line and its reputation in the marketplace. Corporations could also find themselves facing potential legal liabilities associated with lost invoices, payments made to the wrong provider, and fraudulent uses of payment data.
Additionally, in todays highly competitive economy, companies are under increasing pressure to drive efficiency and identify opportunities for cost savings. Manual accounts payable systems can impede such cost-savings. For example, manually entering data, tracking down records, and allocating payments to the proper accounts, can be laborious, error-prone, and time-consuming?taking team members away from more productive projects.
Ultimately, an automated software solution for accounts payable can offer strong platform for increased security and enhanced compliance, as well as productivity and cost-savings. While significant upfront investment may be required, it is important to weigh the advantages of automation against the long-term risks of running without it. Doing so can provide an organization greater control and assurance of meeting their operational and financial objectives.
