The Cost Of Ignoring Accounts Payable Automation
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by Naomi Wood
The cost of inefficiency and mismanagement in accounts payable cycles is immense and well known. As finance executive, it is essential to stay ahead of the risks associated with failing to automate accounts payable processes. Without the right software to manage such activities, an organization could find itself in an untenable financial situation or in breach of legal regulations.
Accounts payable automation software streamlines and automates accounts payable cycles, ensuring that expenses are paid on time and properly managed. Without such tool, organizations may find themselves with improper or incomplete records, imprecise invoices, and inaccurate data that interfere with the compilation of financial statements. It also takes the manual process of writing checks and making payments, which is more error-prone and slower than automated processes.
In addition to transaction errors, it becomes more challenging to detect and prevent fraud when accounts payable automation is not in place. It can be hard to oversee all the manual processes and track payments for accuracy. The potential for fraudulent activity increases as manual processes are often more susceptible to human error and manipulation.
Organizations must ensure compliance with government regulations when managing accounts payable processes. Regulatory compliance is more difficult without automated records. When selecting software solution to automate accounts payable cycles, organizations should look for those that include compliance auditing and reporting.
Finally, lack of accounts payable automation often results in inefficient and expensive processes. Without software solution, organizations are required to manually enter data, which takes additional time and can lead to delays in payments, storage of physical documents, and manual reconciliation. All of these activities can cost time and money, as staff spend precious hours performing essential work.
It is clear that accounts payable automation is channel towards increased efficiency and cost savings. By failing to deploy the right software solution, organizations risk inefficiency, error, mismanagement, and non-compliance. The cost of ignoring accounts payable automation is immense, and is certainly outweighed by the benefits of embracing such technology.
