Top Reasons to Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for many corporations, 60 % of organizations in the USA are not aware of the numerous advantages of A/P automation. Leveraging software to utilize the process in manner that is seamless and effortless, listed here are our main five reasons why you should automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, consequently eliminating uncertainty. With better transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and things which will effect your department with value add actions.
Reinforce internal controls
A manual A/P process is prone to fraudulent activity. You raise the issues of human oversight, overdue payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The obsolete manual practice is affected with insufficient visibility, by which can result in neglecting to realize a segment here of risks. This may understate expenses and therefore overstate income, that may result in accounting and reporting irregularities and ultimately fraud. A/P automation delivers a total audit trail of each and every step in the process, and allows management to swiftly fix possible difficulties.
Your suppliers want a more beneficial payment process. More efficient payments result in discounts and cost savings get more info for you. Whenever you pay your clients by means of virtual card, which here is a single issued card for a one-time use, you earn monthly cash back incentives. It’s equally good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P errors are expensive and take many resources to manually resolve. With payment automation, you see where, when and why mistakes occurred. Contrary to the manual procedure, with automation you’ll be in a position to systematically address and eliminate problems to improve quality.
A/P payment automation will save you cash, earn you additional profit, reduce the risks of fraudulent activity, provide your operations better transparency, satisfy your customers’ needs, and enrich the total quality of your A/P processes.