Risk of Going without an Accounts Payable Automation Solution

The use of software for cloud-based accounts payable is an invaluable tool for today’s busy finance executive. Yet, many finance departments are still not taking full advantage of its benefits. An accounts payable automation solution can provide a company with security, reliability, convenience, and cost savings. Without it, businesses may be at greater risk of transaction errors and fraud.

The focus on cost savings often tempts decision makers to look beyond accounts payable automation software. However, inattention to this critical aspect of financial management can jeopardize the safety of a business as a whole. It also increases the risk of auditor scrutiny and financial consequences.

Among the risks of going without an accounts payable automation solution are human error, fraud, out-of-date processes, and time wasted on manual reconciliations. Human errors can be exacerbated if processes are manual and payments are made with paper cheques. In addition, if a department doesn’t have a system for detecting fraudulent purchases, there is a greater risk of unauthorised and potentially undetected payments.

With accounts payable automation software, check fraud is virtually eliminated, and it can also help detect irregularities in payment procedures. These safeguards can go a long way towards protecting a company against the financial and legal ramifications of fraud. At the same time, automation eliminates the need for manual input of information, preventing the potential for incorrect or incomplete data entries.

An automated accounts payable system also can significantly reduce processing time and costs. Eliminating the need for manual checks and reconciliations means there are fewer tedious tasks such as entering data by hand. This can produce gains in efficiency and accuracy. With an automation solution in place, it also becomes easier and faster to locate information, manage a quarter-end and year-end close, reconcile accounts, and generate reports quickly.

Finance executives should consider the risks of not utilising accounts payable automation software. These include giving up the opportunity for significant time and cost savings, as well as leaving a company vulnerable to fraud and the potentially dire consequences of inaccurate payments. With such a solution in place, businesses can put themselves in a strong, secure position to navigate the toughest financial challenges.