The Risk Of Ignoring Accounts Payable Automation Software
AUDIT AND ACCOUNTS
Passive or manual invoicing processes come with risks for organizations of every size. Failure to switch to accounts payable (AP) software can bring range of costly issues from errors and fraud to can limiting negotiating power with vendors. Yet, many organizations, spooked by the notion of complex IT change, lag in the adoption of automated solutions and remain vulnerable to financial losses.
Accounting accuracy is key to achieving business objectives and overall financial health. Adopting automation takes away manual tasks and streamlines accounts payable processes. This frees up resources and offers range of other benefits that finance executives must consider.
Poor Internal Controls Can Lead to Fraud
Using manual accounts payable system with no automated controls leaves businesses susceptible to fraud. Employing automation offers greater control over transactions by providing digital records of all invoices and making it easier to audit transactions.
Automation offers range of perimeter security protocols and intrusive alert notifications that can immediately identify any suspicious activity. This can help to easily identify suspicious activity — process that would be more complex if there were no digital systems in place.
Human Error Can Compound Into Costly Mistakes
Finance executives must have keen eye on the bottom line and preventing errors is an important way to save costs. Automation reduces the possibility of human-errors in manual processes such as data entry, mismatched invoices, and lost documents. AP software also allows businesses to transition to an entirely digital invoicing process that is more accurate while minimizing risk.
Automation Allows Improved Vendor Negotiation
Having accurate data and digitized invoices enables finance executives to understand costs and trends while collaborating with vendors. For example, E-invoicing allows business to exchange invoices with suppliers electronically. This helps to expedite processes and allows companies to access discounts and incentives by displaying compliance to the Vendor’s Terms and Conditions.
AP Automation Drives Efficiency and Productivity
Organizations have become increasingly reliant on technology in order to keep up with rapidly changing market place. Automation can help organizations remain competitive and be positioned to scale their businesses when ready. AP automation helps to reduce manual errors and streamlines processes. This increased efficiency often leads to improved productivity and higher levels of customer service.
Conclusion
Failing to adopt accounts payable automation can leave finance teams with an inefficient and risky system. To stay competitive and protect their organizations from internal and external threats, finance executives must take close look at their current AP processes and assess whether their existing systems are still fit for their purpose. Automation provides more efficient and secure set of accounts payable processes that offer financial savings and improved agility.
