Risk Of Not Automating Accounts Payable With Software
AUTOMATED INVOICE PROCESSING CLOUD SERVICE
CFOs, Finance Executives, and other members of the C-Suite can appreciate the significance of automating their accounts payable processes. Refraining from implementing cloud-based automated invoice processing software can often cause detrimental costs and operational strain.
The most immediate financial risk of not adopting such technology is the erosion of efficiencies. Studies have noted that manual accounts payable systems necessitate to 15 times as many staff when compared to automated systems. By maintaining manual processing, payroll expenditures are likely to balloon. Moreover, such system generally necessitates larger administrative staff which can likely be better utilized elsewhere.
Another financial consequence of not automating accounts payable is rogue spending. By failing to capture invoices promptly, hidden costs may accrue. Vendors may charge late fees on regular basis. Furthermore, an automated system sets clear processes for uniform payment, thereby mitigating the general risk of fraudulent payment and costly audits.
Finally, huge advantage of automated processing is quick payment. Manual systems are often hindered by lack of prioritization. This can strain relationships with vendors. Moreover, incentives, such as trade credits and discounts, may be squandered due to the fact that payment is processed too late or check holds are in effect.
An automated system undoubtedly bolsters security too. By reducing the number of personnel who access sensitive documents, the possibility of unauthorized disclosure of data is minimized. Cloud-based software also allows for stringent security measures, such as two-factor authentication that can reduce the possibility of costly breaches.
Although there are numerous benefits to implementing cloud-based automated invoice processing software, there are risks to not adopting one as well. Failing to implement such technology can result in host of financial costs and operational strain that can engender dire consequences.
