Top Reasons to Automate Accounts Payable
Although technology has made Accounts Payable payment automation indispensable for a lot of businesses, 60 % of corporations in the US are unaware of the many benefits associated with A/P automation. Leveraging software programs to utilize the process in manner that is seamless and easy, listed here are our best 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, therefore getting rid of estimation. With better transparency from A/P automation, visibility into the process allows your A/P department to give attention to tasks and priorities that can effect your department with value add actions.
Strengthen central controls
A manual A/P method is prone to fraudulent activity. You increase the challenges of human oversight, late payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The obsolete manual method is affected with insufficient visibility, wherein can result in neglecting to acknowledge a portion of risks. This could understate operating expenses and therefore overstate revenue, that may trigger accounting and reporting irregularities and ultimately fraudulent activity. A/P automation delivers a whole audit trail of each and every part of the process, and makes it possible for management to swiftly correct potential troubles.
Your suppliers want a more beneficial payment method. More efficient payments result in discount rates and cost savings for you. If you pay your customers by means of virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually good for Accounts Payable and Accounts Receivable. Your clients benefit from more efficient, streamlined payments and your A/P Department pivots here to a cash generator.
Prevent error, delay, and needless costs with an automated A/P process. A/P errors are expensive and take many resources to manually solve. With payment automation, you will see where, when and why issues occurred. Contrary to the manual procedure, with automation you’ll be able to methodically address and get rid of mistakes to more info enhance quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraud, bring your operations more transparency, fulfill the customers’ needs, and enhance the total quality of your A/P processes.