Top Reasons Why You Should Automate Accounts Payable
Although technology makes Accounts Payable payment automation a standard for many businesses, 60 percent of companies in the USA are unaware of the numerous advantages of A/P automation. Leveraging software applications to utilize the method in manner that is seamless and trouble-free, here are our main five reasons to automate.
Accounts Payable automation allows A/P to accurately project its outstanding cash requirements, consequently removing estimation. With increased transparency from A/P automation, visibility into the process allows your A/P department to deal with tasks and priorities that will effect your department with value add actions.
Reinforce internal controls
A manual A/P method is at risk of fraudulent activity. You add to the risks of human oversight, late payments, lost invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that prevent and discourage fraud.
The obsolete manual practice suffers from insufficient awareness, in which can result in failing to realize a portion of risks. This could understate expenses as well as overstate earnings, that may trigger accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces an entire audit trail of each and every part of the method, and lets management to quickly handle potential difficulties.
Your vendors want a more effective payment method. Easier payments result here in special discounts and savings for you. Whenever you pay your customers by way of virtual credit card, which is an individual issued credit card for a one-time use, you earn monthly cash rebates. 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 income generator.
Prevent get more info error, delay, and pointless costs with an automated A/P process. A/P errors can be very expensive and take many resources to manually fix. With payment automation, you will see where, when and why faults transpired. Unlike the manual process, with automation you’ll be able to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you extra income, reduce the risks of fraud, provide your operations better transparency, satisfy the customers’ needs, and enhance the overall quality of your A/P processes.