The Perils Of Accounts Payable Automation Ignored
AUTOMATE AP
A common misinterpretation amongst modern businesses is that automating the accounts payable process will provide positive return, both cost and performance wise, with very little effort. While it is true that using automation to reduce repetitive manual work does offer degree of financial savings and technical process improvements, there are several potential risks to consider when opting out of software for Accounts Payable (AP) Automation.
Firstly, failure to automate presents an increased risk of errors. As the process manualization introduces additional complexities, it is easy to make mistakes that can cause costly delays. The process of manually entering invoices, cross-checking multiple documents, and tracking down corrections can be laborious and brain-numbing task. Sofware for Accounts Payable Automation eliminates errors and redundancies by offering automated invoice processing, improved data entry accuracy, and timely validation. This, in turn, ensures accurate and timely financial reporting.
Another risk associated with not implementing software for automation is risk of data security. Many manual processes require the storage and management of large amounts of sensitive financial data, and manually tracking and safeguarding this data is strenuous and high-risk task. Automation ensures better data security by providing improved access control for sensitive information, updating log files in real-time, and facilitating security alerts for potential data breaches.
Last but not least, manual processing significantly increases the chances of human errors in VAT and compliance. Automation enhances transparency, accurate reporting and offers an audit trail that is both comprehensive and timely. It helps businesses remain compliant with GAAP, SOX and other taxes, while reducing the amount of time and money spent on manual compliances and audits.
By assessing the risks associated with ignoring Accounts Payable Automation, Finance Executives can more easily arrive at decision when considering software solutions. Automation provides not just cost and efficiency gains, but improved security, accuracy, and compliance with regulations. In summary, while there are risks associated with not automating accounts payable processes, those risks can be greatly mitigated with the use of the right automation software.
