Risk Of Not Using Accounts Payable Automation Software
AUTOMATED PAYMENTS SERVICE
For most businesses, accounts payable automation software is seen as necessary source of savings. Yet, many companies remain hesitant to leverage the software, mistakenly believing that doing so will cause added costs and decrease efficiency. In reality, failure to use accounts payable automation software can be detrimental in the long run, leading to increased risks in terms of security, fraud, accuracy, and missed payment discounts.
Risk of Data Security Breaches
When payments are processed manually, the risk of data security breaches is greatly heightened. Accounts payable teams use variety of tools to store and process sensitive data, from Excel spreadsheets to paper documents. Under such conditions, it is extremely difficult to control permissions, as well as to detect security threats quickly. Moreover, multiple payment processing systems across departments further increase the complexity of managing data securely.
However, with accounts payable automation software, all data is stored in one system, with advanced security protocols such as encryption, multi-factor authentication, and access monitoring. As such, it allows businesses to securely store and manage data, significantly reducing the risk of data breaches.
Risk of Fraud and Human Error
When payments are manually processed, there is great risk of fraud and human error. businesses must be diligent in detecting fraud and incorrect payments. Depending on the volume of invoices and payments, this may prove difficult, as it requires time, resources, and in-depth knowledge.
By automating accounts payable processes, these risks are greatly mitigated. Automation software quickly detects invoice discrepancies and mismatched buyers and sellers, making it easier to detect fraud and spot errors due to human oversight.
Risk of Accuracy and Time
Processing payments manually often leads to accuracy issues, such as incorrect invoices and duplicate payments. This can result in losses, plus additional costs and time for corrections.
Accounts payable automation software offers more efficient way to process payments quickly and accurately. The software reduces the chances of errors, since all invoices are checked automatically. It also ensures accuracy by providing detailed reports, so businesses can monitor their accounts payable performance more closely and make any necessary adjustments.
Risk of Missed Payment Discounts
businesses need to streamline payment processes and maximize their accounts payable savings. One way of doing this is by taking advantage of payment discounts. Payment discounts are offered by some suppliers and customers when businesses pay their invoices early. Yet, manually processing payments can lead to missed payment discounts, as invoices can be processed too late or forgotten altogether, resulting in reduced savings.
Accounts payable automation software, on the other hand, allows businesses to optimize their payment processes, schedule invoices in advance, and take advantage of discounts. Not only does the software make sure that invoices are paid on time, but it also helps businesses identify the best discounts available, maximizing their cost savings.
In conclusion, businesses that do not leverage accounts payable automation software run the risk of data security breaches, fraud, accuracy issues, and missed payment discounts. The software eliminates these risks and provides secure, accurate and efficient way of processing payments, reducing costs, increasing savings, and optimizing return on investment.
