Risk Of Not Automating Accounts Payable Audits
AUDIT OF PAYMENTS
Organizations seeking to manage their payments more effectively and efficiently should explore making use of an accounts payable automation software. An audit of payments is mandated by several regulatory bodies, with potential ramifications for errors, incorrect payments or fraudulent activities. Without software solution, the audit of payments is necessarily manual and inefficient, with risk of errors or omissions that can damage the organizations reputation and, depending on jurisdiction and criteria, potentially subject the organization to internal or governmental investigation and penalties.
Conducting manual audit of payments can be an enormously time-consuming task, consuming precious resources and potentially inhibiting the organizations ability to meet payment deadlines and commitments or successfully process transactions. Instead of repurposing internal staff or hiring additional personnel to undertake the manual audit, an accounts payable automation software can free up personnel to focus on more value-adding activities, while at the same time automating the process and reducing the risk of errors.
For those conducting the manual audit of payments, certain aspects may be particularly cumbersome, especially in the context of large datasets and complex transactions. Manual processes are error-prone, with large datasets prone to omission of minor items, miscalculation, inconsistency or merely duplicating effort due to inadequate organization of records. Additionally, manual audits may require intense focus and concentration, leading to fatigued staff, particularly if audit periods are too lengthy or the audit is not segmented effectively.
On the other hand, an accounts payable automation software is able to use artificial intelligence and predictive analytics to provide comprehensive audit of payments within fraction of the time that manual audit would take. The software is able to detect anomalies and irregularities in transactions, with sophisticated analysis enabling even complex transactions to be audited much more quickly and accurately than by manual methods. Additionally, the software is able to organize data for the auditor, saving great deal of time in data retrieval, verification, and reconciliation.
While manual audits of payments may be necessary under certain circumstances, where large volume of transactions are involved and the risk of errors involving financial information is serious, an accounts payable automation software provides an effective, easy-to-use alternative. This software solution can save time, resources and money while reducing risk, allowing organizations to focus on delivering value to its stakeholders in an optimized, efficient and productive manner.
