Unleashing The Risks Of Accounts Payable Automation Software Omission
AUTOMATED ACCOUNTS PAYABLE SYSTEM
Accounts Payable (AP) automation software offers myriad opportunities for organizations to adhere to compliance, streamline payment-related processes, and gain greater control over accounts payable information. However, tapping into the potential of AP automation software is significantly complex and long-term. Despite the far-reaching advantages, neglecting to deploy the technology comes with its own set of risks, causing organizations to suffer financially, operationally and with efficiency.
At its core, manual AP operations can prove to be an arduous undertaking, with endless stacks of paper documents, accounts payable processing errors, manual entry of data into multiple systems, and slow payment cycles causing organizations to struggle with accuracy and productivity. By upgrading to AP automation software, businesses may improve the flow of accounts payable-related data, minimize errors, accelerate payment cycle times, reduce costs, and maintain higher level of compliance and control over accounts payable-related information.
In contrast, organizations that are reluctant to adopt accounts payable automation software risk serious safety and security threats to their finances, data, and employees. Here are three major risks associated with dodging accounts payable automation software and their far-reaching implications.
ID Fraud and Theft
Manual and paper-based accounts payable processes open the door for potential scams and fraud. As the risk of inadvertent human error is significantly higher in the manual workflow, financial data is likely to be exposed to unauthorized third-party users. To make matters worse, manual accounts payable processes are prone to systemic errors, lack of visibility, and incomplete data all of which can be exploited by malicious agents. With the deployment of modern accounts payable automation software, organizations can safeguard their accounts payable systems from data manipulation, as well as from unauthorized views, prints, and downloads of the companies invoices, purchase orders, payments, and other sensitive information.
Lost Contracts
Manual AP operations can be chaotic, with stacks of invoices and other paperwork piling on top of each other. Initially, the difficulty of completing manual accounts payable processes can keep organizations at bay. But with the continuous influx of paper-based processes, the inability to locate purchase orders, invoices, contracts, and other critical documents can be nightmare. This inefficiency may eventually lead to an inability to identify and forecast valuable business insights, hampering an organizations potential to seek innovative solutions or make strategic decisions. Switching to AP automation software not only automates invoice audits, but also streamlines organizational data and reduces the risk of misplacing or losing important contracts.
Wasteful Audits
Traditionally, organizations have to periodically audit paper-based accounts payable documents. This can prove to be daunting task given the immense resources, energy, and time required to monitor every single payment transaction manually. Although organizations may use external auditing firms to spot check invoices and other accounts payable documents for validity, accuracy, and any signs of misuse, the entire process is still expensive, unwieldy, and time-consuming. Upgrade to accounts payable automation software that enables companies to quickly and effortlessly audit all manual P2P documents at any time with no hassle or added cost.
By leveraging accounts payable automation software, organizations may benefit from features such as tangible reporting, three-way matching, and automated controls that can help keep financial data secure. Moreover, the automation of manual accounts payable processes can contribute to response time evaluations and improved customer service, reducing total costs and improving overall organizational efficiency. Financial executives, therefore, must to consider the far-reaching risks of neglecting automation software and its irresistible advantages.
