The Risk Of Not Automating Accounts Payable
AUTOMATE ACCOUNTS PAYABLE SOFTWARE
For any executive looking to gain competitive edge in the finance world, automating accounts payable should be top priority. In recent years, accounts payable automation software (APAS) has become necessity for any business that wants to remain profitable and competitive. Yet, according to many financial experts, the importance of APAS is often underestimated, particularly when it comes to risk management. This article will cover the most significant risks associated with not automating accounts payable, and provide an overview of the many benefits that APAS provides.
One of the primary risks of not automating accounts payable is the likelihood of inaccurate payments. Without the aid of an automated system, errors such as duplicate payments and incorrect coding will be inevitable. What’s worse, such mistakes can result in financial losses that are difficult to recuperate, as well as lack of trust between businesses and their vendors. This can lead to costly rework, as well as strained vendor/business relationships, with the latter being particularly pertinent in competitive market space.
Another potential risk of not using APAS is fragmented data and bureaucratic processes. On average, manual accounts payable processes are highly inefficient, leading to labor-intensive, time-consuming functions such as manually entering data and communications that take days or weeks to complete. This can create significant administrative difficulty and restrict the suppleness of any business.
Not using APAS can also lead to greater difficulty in providing an oversight of accounts payable. Without an automation software, it is virtually impossible to detect patterns or trends in financial data, which can make it difficult for businesses to identify any areas requiring change in strategy. In addition, another risk posed from not automating accounts payable is the possibility of invoices and payments not being accurately tracked or documented, leading to discrepancies and further issues within the accounts payable process.
Thankfully, the risk posed from not automating accounts payable is easily avoidable. Automation software for accounts payable, such as APAS, offers numerous advantages including simpler, more accurate flow of information between businesses and vendors, instant payment tracking and coding, bundled information processing (e.g., document scanning, image registration, check printing and electronic invoicing), full invoice visibility and more. In addition, many APAS also come with user-friendly mobile applications, accounting integration, workflow automation and bank connectivity, making them an invaluable tool for sound financial management.
In short, automating accounts payable with software such as APAS is not just about eliminating errors or streamlining processes but about minimizing risk, maintaining trust and having the ability to make informed decisions all of which are invaluable qualities for business looking to remain profitable and competitive.
