Risk Of Not Automating Accounts Payable
CAN YOU EXPLAIN END TO-END PROCESS OF ACCOUNTS PAYABLE
businesses of all sizes and industries require viable account payable (AP) processes in order to remain productive and successful. With increasingly complex regulations, rising costs, and ever-growing volumes of data, manually processing accounts payable can cause an immense strain on your business and lead to numerous potential risks.
Given these circumstances, integrating automated accounts payable software is means of managing AP efficiently and cost-effectively. This type of software works through an end-to-end process, which is series of interconnected steps and workflows that facilitate the full accounts payable cycle.
The end-to-end process of accounts payable automation begins within the data capture stage, wherein your payment and invoice documents are collected and routed directly to central database. Once the data is collected and stored in the database, the software verifies the accuracy and completeness of the invoice information, making sure all key fields are properly filled in order to provide better payment accuracy and prevent late payments.
Next, the accounts payable software then automatically reconciles the payment against the invoices, approving the payment if it fully matches the invoice or alerting an appropriate user of any discrepancies. The software also provides data management features, allowing you to store archival documents securely and limit access to the information to authorized personnel only.
The end-to-end process continues with the accounts payable software generating the payment by checks, ACH transfers, or wire transfers, depending on the invoice details. After the payment has been issued, the system keeps complete audit trail of every step in the AP process, allowing users to view the timeline of every action related to particular invoice or payment.
Without automated accounts payable software, businesses are subject to increased costs, human errors, and risks of non-compliance. Maintaining manual accounts payable system is prone to errors due to duplicate data entries, transcription errors, and other mistakes. Moreover, manually handling AP workflows is time-consuming and can lead to lengthy payment delays.
In addition, manual systems are unable to catch possible fraudulent payments. Automated accounts payable software can detect discrepancies within payment and invoice data, thereby mitigating the risk of financial loss. It also helps ensure compliance with both governmental and industry regulations, such as preventing overpayments and promoting accurate accounting processes.
Given these risks associated with not automating accounts payable, businesses should consider the advantages of integrating accounts payable software. Automated accounts payable software can help streamline complicated AP cycles and reduce costs associated with manual processing. It also addresses data security needs and ensures thorough data collection and management. The software can also speed up payment processing, maximize accuracy, and prevent fraud or non-compliance issues.
Considering the potential risks of continuing with manual AP management, investing in automated accounts payable software is an effective solution to protect your business from potential errors and liabilities. By automating your accounts payable system, you will gain greater visibility, control, and scalability for your businesses AP workflow.
