Risk Of Not Using Accounts Payable Automation Software


Accounts payable automation (APA) software, when properly implemented by finance executive, can be an invaluable asset to company. An APA system eliminates the traditional paper-based manual accounts payable process, thus improving accuracy and eliminating potential errors. This type of software also provides expedited payments, as well as greater control, by providing real-time data, leading to improved financial forecasting. Despite the potential for improved efficiencies and cost savings, many companies choose to forgo the use of an APA system, with often detrimental consequences.

Companies that do not deploy APA systems are leaving themselves vulnerable to variety of risks associated with inefficient use of personnel and financial resources. For example, manual accounts payable processing can be quite time consuming, particularly if it involves manual data entry. This can lead to overworked staff, and precious man hours being wasted on mundane tasks. Moreover, those manual processes increase risk of fraud and financial mismanagement, as it is difficult to accurately verify all data entries. Furthermore, without an APA system, invoicing and payments often become unpredictable; thus, companies cash flow is significantly at risk when they lack the visibility that an APA system provides. This makes it difficult to accurately adjust to changing market conditions, as financial managers may not be able to respond to changing circumstances with maximum efficiency.

In addition to the risks previously discussed, an APA system features features such as automatic invoice matching and duplicate invoice detection, significantly reducing the chance for payment errors and reducing time spent verifying the accuracy of invoices. Many systems also allow for better tracking of payments and invoice status, as well as automated vendor inquiries, allowing for increased visibility and better decision making.

All of these features clearly demonstrate that the cost of not utilizing an APA system far outweighs the investment of undertaking such solution. Quality APA systems can cost significantly less than buying, implementing and training personnel to use manual accounts payable solutions, and ensure smoother and more accurate payments processes. well-implemented APA system will provide the company with increased control, improved accuracy, and expedited payments. The true cost of not utilizing such system will be felt in the long run, as company is constantly taking on the risks associated with manual accounts payable processes.