Risky Business of Manual Payments

Manual payments, or the practice of manually processing accounts payable transactions, are inherently riskier than automated payments made via a specialized software platform. Payment automation software has many advantages, such as reducing errors, increasing operational efficiency, and enhancing compliance management, to name a few. For finance executives tasked with minimizing risks when it comes to accounts payable and overall accounts management, the clear choice should be the use of an automated software platform.

Paper-based or manual accounts payable processes are an outdated and inefficient method of managing these types of transactions. Creating and filing purchase orders, invoices and cheques is a labor-intensive task and leaves your business vulnerable to a number of risks, such as incomplete data, human error, and other inaccuracies. These inaccuracies can lead to declined payments, miscalculated payments, duplicate payments, and even inputting the wrong beneficiary information, resulting in friction within supplier relationships and the loss of trust.

Furthermore, the cost of having a manual process can be substantial. With manual payment processes, businesses must pay more for manual tasks such as data entry, field trips to banks, paper storage, and so on that can be eliminated with automated payment software. Additionally, manual payment processes are not only inefficient and costly, they also imply additional compliance costs. New rules, regulations, and compliance measures, such as invoice and purchase order verifications, can all be automated to streamline the approval process.

Businesses seeking automated payment solutions should, first and foremost, evaluate the compliance requirements associated with their payment process. An automated software solution should encompass the minimum accounting standards for accounts processing, ensure all internal processes adhere to the latest compliance regulations, and protect a business?s data from any potential security breaches.

Aside from protecting your data from any security threats, an automated payment software also offers a variety of other benefits. Automation of accounts payable processes results in enhanced operational efficiency, improved end-to-end visibility, and a secure, automated payment chain that eliminates labour-intensive manual processes, such as data entry and printing and mailing cheques. Employees can reduce time spent on data entry, focus more on other operational tasks and reduce operational costs overall.

For finance executives looking to minimize risk by leveraging an automated accounts payment software, many factors come into play. While each business is unique, the decision to modernize operations through automated payments and improve efficiency, compliance and financial control, should be an easy one to make.