By A common problem with small businesses is how they can get stuck repeating the same old routine again and again, even when it has become an outdated practice. One such example is the use of spreadsheets to track the entire invoicing process. While there is no denying that the handy spreadsheet was once considered the best way to keep track of a company’s finances, which is no longer the case today.
Many small and large businesses alike have turned to automated AP for their invoicing needs because it is more efficient, cost-effective, and accurate. For those who are unsure about leaving the past behind, here are some convincing arguments about the different disadvantages of continuing to use a spreadsheet for tracking the accounts payable process:
Disadvantage #1: Repetitive Encoding
A spreadsheet, while useful in some way requires a lot of manual labor, specifically when it comes to encoding the same information over and over again. Everything from the vendor’s billing address to the description of each item sold to your company requires repeated encoding. This is more than enough to confuse and tire out a human AP department staff member.
No matter how experienced the encoder may be, there is still a lot of risk for repetitive and unproductive man-hours wasted on typing the same information over and over again.
Disadvantage #2: Human Errors
As mentioned above, humans get tired after staring at the computer screen for too long. Add a lot of numbers and specific important details and it is easy to type in the wrong numbers. A small company can suffer a significant loss in finances after just one typo. It is best not to risk the future of the business and to invest in automated AP solutions instead.
An automated system can easily detect any errors to ensure that the invoicing process is as accurate as possible.
Disadvantage #3: Excessive Expenses
A single invoice process can cost a company anywhere from $12 upwards to $40 which results in a lot of expenses when you add all of the invoices your company processes per year. The cost includes everything from man-hours of the AP department, the use of paper and printer ink, and other variables that can all be avoided when the AP system becomes automated.
Small businesses can stand to cut the price of invoice processing to just $3.50 per invoice. That cuts the costs significantly and save your company a lot of money in the long run.
Disadvantage #4: Manual Backup
All invoices that are noted on the spreadsheet must be backed up manually for safety and reassurance. This adds more work and responsibility for the AP department and it is usually left unattended. When the time comes an invoice is lost, there is no backup available and the entire process is disrupted.
Upgrade Your AP Systems Soon
Don’t wait until your small business starts drowning in paper invoices or in unpaid dues because of a faulty AP system. Get automated and watch as the system create a faster, more reliable, and dependable accounts payable processing format.
Forget spreadsheets and transition to an automated AP system that saves you time and money. Find out more and contact Nexus Systems today.
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