The Downside of Choosing Suboptimal Electronic Invoicing Software

Purchasing state-of-the-art accounts payable automation software is a necessity for businesses with a high number of invoices or a need for quick payments. An inadequate invoicing system, however, can have a significant impact on a business?s bottom line, make financials inaccurate, and deter vendors from wanting to parnter with an organization. Finance executives need to be knowledgeable about the risks associated with the selection of suboptimal electronic invoicing software in order to ensure best practices when managing more efficient practices.

In order to realize the full benefit of utilizing an electronic invoicing software, considerations such as data integrity, formatting accuracy and accessibility should be taken into account. While many free and low-cost options exist in the marketplace, most come with a major issue: rudimentary functionality. Only programming with sophisticated reporting capabilities, data analysis modules, and automation tools can guarantee the finessed operation that many organizations need. The inability to handle large amounts of data, automated payments, and a variety of formats can stymie the growth (or introduce potential declines) of an organization.

Organizations with the wrong invoicing software can easily miss key transactions due to a lack of automation or poor data organization. This can increase wait times and result in errors that have far-reaching ramifications. Additionally, lacking the right features can mean some invoices need to be done manually, reducing the efficiency of the processing of invoices and increasing the cost of junior employees? time to handle those tasks.

Not having the necessary functions and data integrations can create a data void in regards to company financials and cash flow. Furthermore, incomplete data analysis can impair informed decision making for a business. This can lead to complications with day-to-day operations and difficulty in planning for the future.

Invoices for all accounts can be managed and automatically tracked, so problems are identified immediately. Without such tracking, vendors and customers may not get paid on time, and organizations may not be alerted to backlogs. When invoices are not handled quickly, vendors may turn to a competitor, resulting in huge losses. Not only is the potential business gone, but the company may suffer penalties due to late payments.

In conclusion, the selection of high-quality accounts payable automation software is essential to keeping an organization functioning at its top performance. The costs of mismanaging invoicing can be extremely high, with possible repercussions on business operations, customer satisfaction and vendor trust. Therefore, it is imperative for finance executives to ensure that all software choices are thoroughly researched and capable of executing the desired actions.