Risk Of Not Leveraging Software For Accounts Payable Automation
AR INVOICE AUTOMATION APPLICATION
As an executive in finance, you face the perennial challenge of balancing risk management with the cost of ?doing nothing?. Unfortunately, the consequences of not leveraging software for accounts payable automation are high and the cost of not automating the invoicing process is greater than to automate.
Spending too much time on manual processing of invoices significantly increases the risk of financial losses. In addition, manual processes are prone to errors, and can lead to duplication of labor, insufficient financial controls and higher level of non-compliance with audit protocols. Auto-approvals, on the other hand, provide greater control over the financial supply chain, reduce paperwork and facilitate compliance with government rules and regulations.
By automating the accounts payable process, companies can save on costs related to processing invoices, and the data within. Automation increases the accuracy of financial reporting, and ensures that invoices are received, approved, and processed in timely manner. Automation also helps to reduce human labor and paper costs, as well as reducing the risk of people making errors.
Due to automation of accounts payable activities, companies gain detailed visibility into their business. Executives can keep track of their finances, such as managing cash flow and ensuring proper coding on every invoice. Automation enables corporate finance departments to prevent fraud and to identify suspicious activities in real time.
Finance departments can also gain more insight into vendor performance. By assessing vendor performance the finance department can decide which vendors are reliable, and consequently those with whom to continue doing business. This decreases costs associated with late payments, as well as reducing risks related to inefficient contract management. Overall, knowing the vendor performance provides the finance team with greater control over the financial supply chain–savings that significantly outweigh the cost of account payable automation software.
Moreover, automation enables finance executives to take proactive measures in capturing discounts to strengthen their bottom line. Automation of invoices also reduces the risk of incurring penalties and fees associated with late payments and inaccurate coding.
Accounts payable automation software helps companies achieve greater accuracy and compliance, while reducing paper and labor costs. The benefits of leveraging accounts payable automation software far outweigh the potential risks of manual processing and far exceed any related costs. At the end of the day, the increased accuracy associated with automated processes boosts your bottom line while protecting your business against fraud and non-compliance.
