The Cost Of Ignoring Accounts Payable Automation
AUDIT ACCOUNT PAYABLE
Modern organizations face increasing pressure to maximize efficiency and profitability. For the Finance executive, looking for ways to reduce manual intervention in the Accounts Payable area is must. While the Accounts Payable process may appear to be comparatively straightforward task, the cost of manual intervention is unbounded. That is why Accounts Payable Automation software is quickly becoming the norm, not the exception.
Without adopting specialized software solution, manual intervention of financial transactions can consume immense amounts of time and resources. Accounting staff is tasked with identifying vendor invoices, routing them for approval, following up on delinquent payments, and gathering the missing data points. This results in an increased rate of invoice processing errors, truncation of human capital, and, ultimately, an erosion of bottom-line results.
More surprisingly, manual methods can also significantly hinder cash flow. Invoices with long payment cycles often languish inside backlog and are paid late, leading to higher interest payments and fewer advantages on early payment discounts. This can have significant, cascading effect on the overall cash flow of the company, as the incoming funds are not utilized to create new value and cannot be accessed until later date.
The situation gets even worse with outdated or manual filing systems. The possibility of misfiling invoices, handling duplicates, or simply throwing away invoices for good is greater when relying on manual filing. Moreover, manual reconciliation processes risk making it near impossible to identify fraudulent activities and can further erode the bottom line.
In recognition of these risks, organizations are increasingly turning to Accounts Payable Automation solutions. That is not surprising. Automation can significantly reduce the need for manual intervention in the accounts payable process, resulting in more accurate invoice processing and more timely payment procedures.
Moreover, when automated, segregation of duties, accounting systems, and financial process checks become more reliable, and the possibility of fraud is significantly reduced. This can lead to reduced overall financial risk, better resource allocation, and greater process transparency. In addition, Accounts Payable Automation can significantly reduce the need for finance staff, thus freeing resources for more critical projects and further reducing costs.
In short, investing in Accounts Payable Automation software offers comprehensive and secure solution for ensuring timely payment to vendors, increased accuracy of the financial process, and improved control over budget. By ignoring the technology, organizations risk falling behind in the competitive landscape, losing customers and financial growth opportunities, and are exposed to increasing risk.
