Top Reasons to Automate Accounts Payable
Even though modern technology makes Accounts Payable payment automation simple for numerous organizations, 60 % of corporations in the USA do not know of the countless benefits of A/P automation. Leveraging software applications to utilize the method in manner that is seamless and effortless, here are our top 5 reasons to automate.
Accounts Payable automation lets A/P to accurately project its pending cash requirements, accordingly eliminating guess work. With more transparency from A/P automation, visibility into the system allows your A/P department to deal with activities and things that can effect your department with value added activities.
Reinforce central controls
A manual A/P method is prone to fraud. You multiply the issues of human error, overdue payments, lost invoices, and the dreaded rush invoices. An automated A/P process embeds controls that reduce and discourage fraudulent activity.
The outdated manual practice is affected with lack of awareness, through which can result in neglecting to acknowledge a segment of liabilities. This may understate expenditures and therefore overstate earnings, which can result in accounting and reporting malfunctions and ultimately fraud. A/P automation offers a total audit trail of each and every step in the process, and enables management click here to promptly handle possible troubles.
Your suppliers would like a more efficient payment method. Easier payments result in deals and cost savings for you. When you pay your customers by way of virtual credit card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers benefit from more efficient, streamlined payments and your A/P Department pivots to a cash generator.
Avoid error, delay, and pointless costs with an automated A/P process. A/P errors are expensive and use up many resources to manually clear up. With payment automation, you see where, when and why mistakes happened. In contrast to the manual process, with automation you’ll have the ability to systematically address and eliminate errors to improve quality.
A/P payment automation can save you cash, earn you additional revenue, lessen the risks of fraudulent activity, get more info your operations increased transparency, meet the customers’ needs, and boost the overall quality of your A/P processes.