The Risk Of Inadequate Accounts Payable Automation
AUDIT ACCOUNTS PAYABLE CHECKLIST
Finance executives are charged with finding effective solutions to streamline accounts payable processes, particularly with mounting pressure to increase productivity and reduce costs. With this in mind, foregoing accounts payable automation software could prove to be risk worthy of due consideration.
The adoption of accounts payable automation software is highly effective in optimizing the payment process, increasing visibility into the cycle, and establishing greater control enterprise wide. Greater transparency in companies accounts payable processes allows Executive leadership to identify and address any underlying issues that may exist, such as fraudulent activity, duplicate invoices, or incorrect coding, which could otherwise lead to additional expenses.
Having oversight of the accounts payable function is also critical in light of regulatory compliance requirements. Automation software assists in staying up-to-date with any applicable legal obligations, demonstrating that the company adheres to sound business practices and is responsible in its vendor payments.
Streamlining accounts payable processes with automation not only reduces time and effort associated with manual tasks, but provides valuable data on vendor payment trends, allowing for more informed decision making. Data obtained from this software could make all the difference in reducing output costs, identifying cost avoidance opportunities, and potentially improving negotiated terms with suppliers.
Finally, with usage of accounts payable automation, time can be better spent on core business activities and improving efficiencies. Rather than allocating resources to labor intensive, data-entry tasks, these resources may be mobilized to enhance the companies financial operations.
Consequently, abstaining from automation of accounts payable processes may ultimately cost company considerably in terms of risk, dollars and opportunity. Executives would be wise to consider their options carefully and implement the technology to enjoy the demonstrable benefits such software can offer.
