Top Reasons to Automate Accounts Payable
Even though technology has made Accounts Payable payment automation simple for numerous companies, 60 percent of corporations in the USA are unaware of the countless benefits associated with A/P automation. Leveraging software programs to utilize the method in manner that is seamless and convenient, listed here are our main 5 reasons to automate.
Accounts Payable automation enables A/P to correctly project its outstanding cash specifications, accordingly eliminating speculation. With better transparency from A/P automation, visibility into the system allows your A/P department to give attention to activities and things that will effect your department with value add actions.
Improve internal controls
A manual A/P process is prone to fraud. You raise the challenges of human oversight, late payments, missing invoices, along with the dreaded rush invoices. An automated A/P process embeds controls that stop and discourage fraud.
The obsolete manual process suffers from insufficient awareness, wherein can result in failing to acknowledge a portion of risks. This could understate expenditures thereby overstate revenue, that may lead to accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation delivers a total audit trail of every step in the method, and permits management to quickly solve possible problems.
Your suppliers would like a more efficient payment method. Easier payments result in special offers and savings for you. If you pay your customers by way of virtual card, which is a single issued card for a one-time use, you generate monthly cash back incentives. It’s mutually beneficial for Accounts Payable and Accounts Receivable. Your customers experience more efficient, seamless payments and your A/P Department pivots to a cash generator.
Prevent error, delay, and unnecessary costs with an automated A/P process. A/P mistakes may be very costly and consume many resources to manually remedy. With payment automation, you see where, when and why issues occurred. Unlike the manual process, with automation you’ll have the ability to methodically address and eliminate problems here to enhance quality.
A/P payment automation can help you save cash, earn you extra earnings, decrease the risks of fraud, bring your operations increased transparency, meet the customers’ needs, and boost the overall quality of your A/P processes.