Mitigating Risk And Maintaining Value With Accounts Payable Automation
Automate Payables
Organizations that manually process their accounts payable (AP) lack the ability to realize valuable financial and operational gains that accompany the automation and optimization of AP workflows. Companies that refuse or neglect to embrace automated AP solutions encumber themselves with inefficient and error-prone processes that raise the risk of fraud, miss out on cost savings, and remain inadequately prepared to satisfy future business needs.
Manual AP processes, such as checks and paper invoices, are easily prone to human errors, which often leads to costly mistakes, delays, and inaccurate reporting. Additionally, since manual processing requires significant labor, tedious manual data entry, and duplication of financial information, costs usually remain higher than necessary. This higher cost can adversely impact cash flow and stifle business overall financial health.
Manual processing does not usually provide the necessary oversight needed to recognize potential AP-related fraud. Proper integration of automated coding systems for invoices and purchase orders reduces the risk of fraudulent activities and violations of corporate policies. Automation solutions can also more easily enforce cost control measures by requiring pre-defined AP processes and notifying users of important changes.
Accounts payable automation solutions can reduce costs associated with labor-intensive processes, velocity of invoice payments, and discrepancies in vendor contracts. Automation solutions can facilitate multiple invoices to be issued simultaneously and processed quickly, ensuring payment is delivered on time and cash flow positions are preserved. By collecting and measuring invoicing data, automation tools can also compare/cross-reference vendor contracts to spot any discrepancies, reduce possible disputes, and yield savings resulting from smarter contract management.
Companies that have embraced automated AP solutions have seen notable improvements in their input-to-payment cycle, resulting in faster closing process, precise budget tracking, and improved vendor relationships. When the right financial automation solution is selected, it increases the speed and accuracy of common transactional processes, provides comprehensive visibility into the financial system, and ensures data integrity.
Organizations that want to remain competitive must ensure they reduce risk and remain as efficient as possible. Automating accounts payables is one way companies can ensure they are compliant and realize the most value from their financial transactions. By selecting the right automated AP solution, companies can save time and money, improve accuracy, and reduce the risk of fraud.
