Risk Of Not Automating Accounts Payable For Electronic Invoices
EARLY PAYMENT FOR ELECTRONIC INVOICES
Accounts payable automation is process that is quickly becoming requirement for businesses looking to gain competitive advantage in their industries. Through automating accounts payable processes, companies have the potential to significantly accelerate their workflows, while at the same time reducing costs. Unfortunately, too many organizations still hesitate to adopt an automated solution leading to potential risks.
Without software solution, invoices must be processed manually. This process is slow, tedious and costly. When manual methods are implemented, it is common for payment to be delayed, ultimately leading to costs. Delayed payments can result in inaccurate forecasting, missed vendor discounts and additional costs for late payment fees. Furthermore, the manual processing of accounts payable can be time consuming effort, leading to increased labor costs. All of these inefficiencies directly impact the bottom line.
In addition to the financial risks, manual processes hold back organizations from realizing the strategic rewards of the latest technologies. Option such as early payments for electronic invoices become irrelevant as the required technology is not in place. Companies forgoing the automation of their accounts payable processes often hinder their overall strategic objectives.
A lack of integration of invoicing and payment processes can also lead to breakdown in trust with vendors and overall supplier satisfaction. Vendors are likely to end their relationship if they are not receiving payments in an efficient manner. This leads to drop in available discounts and an increase in the costs of goods purchased.
Automation offers extremely efficient integration between invoicing and payment processes. This is often referred to as end-to-end automation. With end-to-end automation, companies can utilize early payments for electronic invoices and receive discounts in the process. Other benefits of fully automated accounts payable process include improved accuracy and efficiency, reduced labor costs and compliance with government regulations.
In conclusion, companies are advised to consider the risks associated with not utilizing software for early payment for electronic invoices. Without suitable solution, companies may find themselves dealing with missed discounts, delayed payments, inaccurate forecasting and inefficient processes. The risks can be overcome through an effective accounts payable automation solution, offering companies the opportunity for strategic rewards and improved efficiency.
