Accounts Payable Automation: Understanding The Risk Of Non-Usage
Automation In Accounts Payable
For any informed C-Suite executive, the decision to utilize an accounts payable automation (APA) software must be weighed against the potential risks of not using such solution. To be sure, being enabled to handle invoices quicker and more efficiently can open up great deal of time that can be devoted towards more lucrative activities. Further, cash back benefits and greater control of company financials can also be realized, making such solution inherently attractive. Nonetheless, if usage of this technology remains neglected, penalties and associated risks constitute very real cause for concern.
One potential risk of not using APA is operating deficiencies. For instance, without this technology financial transactions could be poorly documented, lacking the scope of detail of an optimized computerized environment. Moreover, benchmarks related to successful automation would not be achieved, leading to inefficiency and financial mismanagement. This can result in unwanted attention from outside oversight authorities as well as tightened regulations, ultimately impacting the companies reputation and bottom-line.
Another risk of not utilizing APA software concerns security. Without this technology in place, sensitive financials and other details pertaining to the operation, staff, and clients are at greater risk of being accessed and potentially damaged. Moreover, monetary losses incurred from cyber-related issues may not be mitigated by those insurance policies assumed to protect against such an occurrence. What is worse, the potential brand damage resulting from data breach could be astronomic given the relative ease of cyber-based attacks.
Finally, non-utilization of APA solutions could also lead to opportunity costs. That is to say, without such software in place fewer financial transactions can be processed and lack of comprehensive analysis achieved, both leading to significant time and cost savings. Consequently, company would not benefit or capitalize on automation-related cost efficiencies and opportunities, theoretically negating the potential investment of obtaining such solution.
In conclusion, the risks of not using APA solutions can be substantial and potentially disastrous. For any C-suite executive, the decision to become engaged with an accounts payable automation software necessitates careful consideration and understanding of the salient threats that may arise if such usage is neglected.
