Accounts Payable Automation: The Risk Of Not Embracing Software Solutions
Automating Accounts Payable Process
Many finance executives are aware of the prospective benefits of adopting software for automating their accounts payable processes, yet are still reticent to commit to such solutions. This issue requires careful consideration, as failure to take advantage of such automation technology can result in grave consequences for the efficiency and sustainability of their organization.
From C-Suite perspective, neglecting to take advantage of accounts payable automation can critically impair the operations of an enterprise. Processes that have not been automated are often labor intensive, time-consuming and prone to errors. Not only does this slow down the output of an organization and draw resources away from innovative solutions, but it also increases the probability of costly mistakes.
Moreover, most manual processes lack the transparency vital to ensuring accuracy in every transaction while ensuring digital or physical proof of payment. This could lead to violations of applicable regulations and/or weakened audit defense. Therefore, embracing automation solutions that offer visibility into each step of the process is of the utmost importance.
Furthermore, automated accounts payable systems can reduce human errors, approve transactions faster, and generate faster payments, thus strengthening the relationships with vendors. In this regard, automated payment systems can reduce the rate of late payments, which is particularly attractive feature in the current environment of extremely low interest rates.
Organizations that have embraced account automation have experienced notable financial savings, due to reduced costs related to audits, paper checks and manual data entry. Additionally, operational losses, such as those associated with incorrect entries, lost payments and bureaucratic delays, have been substantially reduced.
Given the above, it is clear that forgoing automated accounts payable systems could have far-reaching consequences for any enterprise. Organizations should weigh carefully the potential risks and benefits of investing in sophisticated Softwaresolutions, as the latter could be incapable of delivering the promised results if it fails to meet the exact requirements of their accounts payable process.
In conclusion, finance executives should take into account all the risks of disregarding accounts payable automation solutions, and make well-informed decision, carefully weighing all available options prior to investing.
