Risk Of Not Automating Accounts Payables
AUTOMATED INVOICE PROCESSING
Corporate finance executives are continuously looking for novel methods to optimize the workflow and drive cost savings. Automated accounts payables offer portentous solution to increase the accuracy, reliability, and speed of accounts payables processing. Moreover, AI-enabled payables technology can process high volume of invoices in shorter amount of time. The risks of leaving accounts payables without the latest software automation include significantly low performance, security issues, and missed invoices.
Lower Performance
One of the biggest risks of not automating accounts payable is the decrease in operational performance. Without the right technology in place, companies tend to pay heavy price due to operation bottlenecks. Automated accounts payable systems come equipped with suite of features such as OCR scanning, double data entry checks, invoice validation, and approval workflows. These features provide holistic way to check invoice data precision, reduce time to invoices, and provide standardized process. In contrast, manual processing of invoices often leads to miscommunication, discrepancies, and delays in payments to vendors. This can significantly increase the financial overheads of the organization and result in missed opportunities.
Security Concerns
The second risk of not automating accounts payables is that of increased security concerns. The rising cyber threat landscape is challenge for companies as well as vendors in terms of data transmission. Sending invoices in unencrypted emails or shifting confidential data to unsafe FTP servers can result in serious security threats or data leakage. An automated accounts payable solution can reduce manual errors and help enforce stringent access control. Multi-factor authentication, role-based access, AI-driven security threat prevention, and secure data transmission are some of the measures that can help mitigate the emerging security threats.
Missed Invoices
The last risk of not automating accounts payables is the possibility of missed invoices. It is not uncommon for companies to face cash flow issues due to the inability to process invoices on time. Automated accounts payables technology can deploy predictive analytics to forecast invoice discrepancies, process invoices faster, and improve the overall accuracy of payments. Companies can also utilize customized vendor portals that are equipped with user-friendly interfaces to swiftly approve invoices and streamline PO matching. This helps increase the invoicing efficiency of the organization and keep track of all invoices.
In conclusion, financial executives have to realize the potential of advanced accounts payable automation software. Leveraging such technologies can help them save costs, enhance performance, mitigate security risks, and improve the accuracy of the payments process. Financial executives need to understand the significance of automated accounts payables systems while making value-driven decisions and assessing their associated risks.
