In last’s week poll, we looked at the advantages of accounts receivable automation. However, this week our latest survey focuses on what businesses believe are the main disadvantages of accounts receivable automation.
Accounts receivable automation, as we know, offers efficiency and agility in financial management for businesses. Despite its many advantages, it also has several drawbacks that businesses must carefully consider before implementing it into their operations.
Poll results
Let’s dive into the main disadvantages identified in our recent poll.
What are the main disadvantages of accounts receivable automation?
The main disadvantages of accounts receivable automation are:
- Upfront costs
- Implementation challenges
- Data security concerns
Upfront costs
38% of respondents associated AR automation with upfront costs as a barrier to their company. Businesses must invest in software licenses and hardware infrastructure while having to train employees on the new system. Additionally, integrating existing systems with a new one takes time. This all begins with a high initial cost.
While the upfront costs can be a deterrent for your business, it is important to note that there are ways to meet your business objectives without missing the long-term benefits of automation. Partnering with EDI service providers gives you the option of customisable solutions tailored to your budget and needs. For example, web-based automation platforms eliminate the need to invest in costly hardware because the systems are fully online-based, making documents accessible anywhere at any time.
Implementation challenges
Implementing AR automation with existing systems is another considerable challenge faced by 23% of our respondents. This is a common issue when it comes to dealing with software. New workflows need to be designed to ensure that they work as smoothly as before. Different departments also need to continuously communicate with each other, making sure their ways of working are aligned.
With the right support and expertise, these challenges can be overcome. EDI service providers specialising in AR automation usually offer comprehensive support, guiding companies through every step of the process and ensuring a smooth transition to automated workflows. This way, disruptions can be kept to a minimum while you sit back and experience the efficiency of automation.
Data security concerns
23% of respondents identified data security concerns as one of their top priorities when considering AR automation. With sensitive financial information being transmitted and stored electronically, businesses must ensure robust security measures are in place to protect against potential breaches and cybersecurity threats. This takes additional time, resources and a lot of planning beforehand, leading to delays in carrying out business objectives.
By partnering with trusted and experienced EDI service providers, you can maintain peace of mind as they already have best practices in place to safeguard your sensitive information. Some practices include advanced encryption protocols, secure data storage solutions, and regular security audits. A reliable provider can also prepare you with the necessary information to make informed decisions with your new system, allowing you to build confidence in your customers and stakeholders.
Other
Finally, 15% responded with “other”. While upfront costs, implementation challenges, and data security concerns are the most cited disadvantages of AR automation, there are other points to consider: the loss of human touch in customer interactions, resistance from employees who fear job displacement or lack the necessary skills to adapt to automated workflows, the inevitable occurrence of system downtimes and software glitches.
Like every other business decision, it is important to weigh the advantages to the disadvantages of AR automation. Figure out what is working for your business or not before deciding whether automation is the right choice for you. By having a clear goal in mind, you can then work through the complexities, utilise the full potential of automation, and ensure a seamless transition to automated workflows.
Learn more about B2BE’s Accounts Receivable solution.
More information
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your supply chain strategy, get in touch with us.