Top Reasons to Automate Accounts Payable
Despite the fact that modern technology makes Accounts Payable payment automation simple for numerous businesses, 60 % of organizations in the US are unaware of the numerous advantages to A/P automation. Leveraging software applications to implement the process in manner that is seamless and effortless, here are our best five reasons why you should automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, consequently eliminating guesswork. With better transparency from A/P automation, awareness into the system allows your A/P department to concentrate on activities and things which will effect your department with value added activities.
Improve internal controls
A manual A/P method is susceptible to fraudulent activity. You multiply the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The obsolete manual method is affected with insufficient visibility, by which can result in neglecting get more info to acknowledge a segment of risks. This could understate expenses and therefore overstate income, which could lead to accounting and get more info reporting irregularities and ultimately fraud. A/P automation produces a total audit trail of every part of the process, and makes it possible for management to quickly correct possible difficulties.
Your suppliers want a more beneficial payment method. Easier payments result in deals and cost savings for you. When you pay your clients with virtual card, which is an individual issued credit card for a one-time use, you receive monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and unneeded costs with an automated A/P process. A/P mistakes are expensive and use up many resources to manually resolve. With payment automation, you see where, when and why errors occurred. Contrary to the manual process, with automation you’ll be able to systematically address and eliminate errors to increase quality.
A/P payment automation can save you cash, earn you extra cash, lessen the risks of fraud, bring your operations greater transparency, meet the customers’ needs, and enhance the total quality of your A/P processes.